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v Pre cleaners v Fine cleaners v Gravity separators v De stoners

v Indented cylinder s v Conveyors v Bucket elevator s v Lab cleaners

3Oil & Food Journal Vol. 08, Issue 06, April 2013

4 Oil & Food Journal Vol. 08, Issue 06, April 2013





Vol 8 Issue 6 April 2013

From the Desk of Editor

Food has been identified as one of the major growth areas in the country and the volume of consumption is significant especially on account of the young generation, which constitutes 55 per cent of the population. And expansion of the middle class, nuclear families, rapid urbanization,

evolving food habits etc have thrown up lot of opportunities in the food market. Indian food sector is poised for a major take-off as the Ready to Eat Market is showing remarkable growth owing to the growing income & consumption levels of the Indian consumers. So now if you and your wife are both working, you really do not need to worry anymore for the aftermath consequences. One would be wondering what type of consequences am I talking about… well guys on a funnier note we do not need to remain hungry or worry about the fact that we will have nothing to eat at home once back from office as our dear wives are working women too. We literally need to thank the growing popularity of Ready to EAT food products and the increasing purchasing power of average Indians. So these RTE food can be a life saver for many working household where is there is little time to indulge in complete food cooking. Rapid urbanization is also augmenting the demand for ready to eat products. Urban people suffer from time crunch due to their busy work schedules and this is leading to increased dependence on ready to eat foods. This is further aided with the penetration and availability of a wide variety of ready to eat products in different packaging formats at various retail points. All these factors are indicating towards the bright future of the Indian ready to eat market in the coming years. The RTE foods market is a key segment of the Indian food processing sector and is expected to garner exponential growth with revenues to the tune of Rs 9,000 crore by 2015. The current size of the market is valued at Rs 3,000 crore.RTE food products have been witnessing radical changes from traditional methods to most modern techniques with the advent of modern technology. Let’s take an example to the penetration of idlis in the RTE food market. Idli making has now switched over from traditional chakkis to most modern methods to cater to the highly potential overseas Indians market. Because of paucity of time and attraction to RTE foods, ‘kitchen-less homes’ will be the order of the day in India within the next 10-15 years and looking at the fastidious growth rate of this segment I hope the Ready To Eat food companies should now reflect to cater to the lower income category as millions of people in India earn less than $ 2 a day. Catering to this segment can make huge business in RTE foods as their spending will be high. Though India has huge market size in terms of population, the per capita food consumption in the country is very low. However, a positive trend has emerged in the food market of late because of the spurt in demand fuelled by organized retail. The western and southern parts of the country are the major markets in food with the faster rise in per capita income. But even after seeing so much growth, India’s ready-to eat (RTE) branded food cuisine is proving to be far more popular in the global markets than in the domestic arena. In the western world, RTE is looked upon as the ultimate in convenience. The segment is good but not the best in statistical comparison with the west – it is yet to pick up in India. Factors deterring the Indian consumer from going in for RTE range are flavor, freshness, affordability and preference for home-cooked food. Companies will need to drastically improve price competitiveness to make them popular. Companies will need to improve distribution channels, address new markets and educate the consumer on the convenience of eating traditional food preparations in handy, single-serve and shelf stable ready-to-eat packs.Although RTE companies maintain that these products are shelf stable, safe and devoid of preservatives because of retort packaging technology, but many consumers are not convinced. This technology also helps retain the freshness and taste. In India, it is a question of culture ruling over convenience when it comes to RTE. The ready-to-eat dishes – either at room temperature, refrigerated or frozen -- require minimal preparation. There is need to highlight the heat-and-eat and microwaveable concept which saves time for the affluent and on-the move population.Other factors that have essentially impact on the growth of RTE foods in India - these are the cold chain development, disintermediation, economies of scale on the supply side and rising disposable incomes. But with better packaging technologies that are already available in the west and improved logistics in terms of cold chain development, the category can be enlarged significantly. This will also be driven by evolving consumption trends, which increasingly are veering towards convenience foods due to changing lifestyles, especially in urban areas.



The perils of ignoring lubricaTion in The food indusTry

Pg 40

News12 Food processing industries utilises less than half fund in 11th Plan

13 Food processing office opened in Mohali

13 ITC’s entry into packaged namkeens may trigger another food war

50Why you can’t stop at just one potato chip

50 Pakistan Mangoes may miss US Market again

51Olam opens $60 million almond processing plant

54 High Value And Processed Food Will Drive Next Wave of Farm Growth: Report

55 Danone India enters the hearts of its consumers with its new belief “Only Good Gets In”

55 So called Junk food may go off menus in Delhi schools

56 Rich pickings as strawberries grown in unusual places

57 Honey Gaining in Sweetener Popularity for Many Food Manufacturers-US

AGRICULTURE

IndIa’s agrIcultural output to reach rs 29.2 lakh cr by 2030:

cII-MckInsey FaIda report Pg 18

Pulses market insight

By Basma Husain

Pg 47

ContentsContents

heart health, naturally

Pg 32

Poetic SPeech on Doubling

inDian agriculture

by Sh. naDir goDrej,

chairman, goDrej agrovet ltD.,

Pg 38

Grain stocks:Is it a problem of storage capacity?

Pg 35


Misguided agricultural policies may boost India’s short-term food output but may transform

India into a food importer in the longer term.The overproduction of grains in India has rapidly depleted underground aquifers and sharply reduced soil fertility.Sound food policy should be a priority for India, on track for the world’s largest population by 2025. India has also achieved status as a major food exporter with rice, wheat and buffalo beef. Indian policies emphasize minimum support prices for farmers and subsidized crops for the poor, but these in turn spur food inflation, price volatility, overproduction of grains and overworked land. The government purchases about one third of all cereal output, yet pro-cereal policies hinder production of non-cereals like fruits, vegetables and dairy products, which benefits other export nations like Canada or Australia. Despite misgivings by economists, a food security billguaranteeing low prices for more than two thirds of India’s population is winding its way through parliament. “The end result of these policies will be India’s forced integration into global agricultural markets, not only as a grain importer, but also as a leading buyer of non-cereal commodities,” explains Deepak Gopinath, director of a research service on emerging markets. Global markets won’t provide special pricing for India’s poor.

India is overproducing and wasting grain

India’s newfound position as leading food exporter will be short-lived, however. Government policies that prioritize the production of rice and wheat and a new right-to-food law that’s now before the parliament will not increase food security. Instead, policies will drive food inflation, accelerate India’s transformation into a net grain importer and increase its dependency on global markets for non-cereal foods. India will be forced into the global food marketplace and not on its own terms.The government’s commitment to open-ended purchases of wheat and rice at ever-higher MSPs has led to a cycle of ever-increasing procurement. The government buys approximately one-third of total cereal production. This also contributes to food inflation. Elevated MSPs and state taxes keep private traders out of the grain market and discourage high stock levels. So open market availability of wheat and rice falls after the end of the procurement season – thus boosting prices. Wheat and rice prices rose 23 percent and 10 percent year on year, respectively, through November 2012, even as the country was exporting. High levels of procurement have resulted in rapid accumulation of grain stocks, now 66 million tons, more than double the required buffer. To place this in perspective, India’s wheat stocks are equivalent to Australia’s entire annual production of the grain, while its stocks of rice are 50 percent more than Thailand’s

yearly output.The level of stocks far exceeds the government’s storage capacity and results in significant wastage. The government has estimated preventable post-harvest losses of food grain at about 20 million tons per year, equivalent to 10 percent of total production. Faced with excess stocks and need to make room for the next harvest, the government is forced to resort to exports.Those exports, and the entire cycle of events making them necessary, are unsustainable. India’s breadbasket states are reaching the limits of productive capacity. The overproduction of grains due to ever-rising MSPs has rapidly depleted underground aquifers and sharply reduced soil fertility. With the government concentrating procurement activities and agricultural investment in terms of capital, fertilizers and infrastructure in northern and western states, productivity in the country’s eastern states, primarily rain-fed, has stagnated despite attempts to raise yields. The government will have no alternative but to increasingly depend on international markets when output in the major grain-producing states starts to lag demand. Perversely, the government’s planned National Food Security Bill will only accelerate this process. The bill creates a right to food for two-thirds of India’s 1.2 billion people and requires the government to distribute heavily subsidized food grain on a massive scale.

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Food processing industries utilises less than half fund in 11th PlanThe government expressed concern

that the food processing industries utilised only Rs 1,600 crore out

of Rs 4,000 crore allocated during the 11th Five Year Plan period under various central schemes.Addressing a conference, Minister of State for Agriculture and Food Processing Industries Tariq Anwar said the government is giving great emphasis on this sector but the industry has failed to utilise the incentives. He sought to know from the industry the reason behind the lukewarm response to the various schemes including setting up of mega food parks and cold storage.“I would like to point out that against a

total allocation of Rs 4,000 crore for the food processing sector in the 11th Plan, the industry could avail only around Rs 1,600 crore under the various schemes.“I would like to know from you (from the industry) as to why the industry could not uses these resources and if there is something that needs to be done at our end, we would be willing to do it,” Anwar said at a conference organised by Indo-American Chamber of Commerce.The minister emphasised that the country has one of the most favourable fiscal incentive structures for promoting the food processing sector. He highlighted several tax incentives being offered by the government.

Anwar noted that the food processing sector out-performed manufacturing in 2011-12 fiscal. “While food processing industry grew at 15.1 per cent, manufacturing growth was close to 3 per cent.”The minister said although the country is one of the largest producers in foodgrains, fruits and vegetables, but the processing level is less than 10 per cent.The growth in this sector would have a much larger impact on the economy as it would contribute in tackling various concerns such as disguised unemployment in agriculture, rural poverty, food security, food inflation, food wastages and improved nutrition, Tariq said

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Punjab minister Adesh Pratap Singh Kairon inaugurated the office of the newly created State Directorate of Food Processing. The building is located in Mohali’s

Phase 2.As, the department comes under the Ministry of Food & Civil Supplies, which is headed by Kairon. The new directorate is intended to implement the state’s food and agro-processing policy and to give suggestions to prospective entrepreneurs on

Food processing office opened in

Mohalithe schemes launched by National Mission on Food Processing (NMFP).The directorate of food processing will act as a single window for prompt processing and clearance of proposals of mega-agri projects under the industrial policy. Addressing the gathering, Kairon stressed the need for adequate grain warehousing. He said that expanding storage capacity was one of the priorities of his ministry.

ITC’s entry into packaged namkeens may trigger another food war

In a move that could make packaged namkeens the next big food fight, ITC is planning to enter this segment, while Parle

Products and CavinKare are relaunching their portfolios, and setting higher sales targets to give regional brands like Haldiram’s, Balaji and Bikaji stiff competition. According to four senior industry officials, ITC will launch a major foray in the next couple of months.It is likely to enter Gujarat, Maharasthra and Rajasthan first, before taking the portfolio national. An official of a competing branded namkeen maker said ITC has been picking up samples of rival brands for the last few months.“They have also sounded some of the top distributors and retailers about their namkeen foray. The company may even enter the namkeen segment under a new brand and not Bingo!,” he said, requesting anonymity. When contacted, an ITC spokesperson declined to comment.ITC’s snacking brand Bingo! is the fastest growing brand in the packaged food business with a growth rate upwards of 30%, and it is currently the second-largest wafer brand in India after PepsiCo’s Lay’s. PepsiCo was the first big food company to take on the regional

namkeen players with its Lehar brand, while its flagship Lay’s focuses more on the western snack space.Lehar is growing faster than Lay’s, which has encouraged PepsiCo to expand its portfolio of 50 SKUs and distribution points. A PepsiCo India spokesperson said the company has adopted a different business model for Lehar including distributed manufacturing, a lean organisation and indirect distribution through wholesalers with higher incentives for retailers to keep price points affordable and enhance speed-to-market.India’s largest biscuit maker Parle Products has focused on improving the bottom line of its snacking business in the last year, and is now re-launching and expanding its portfolio with plans to make it the second-largest business after biscuits, ahead of confectionery.“We are aiming for 25% growth in namkeens, which will also help us to fight bleak consumer demand, since both biscuits and confectionery categories are growing at a tad smaller pace of 10%,” says Parle Products group product manager BK Rao.Parle plans to expand its distribution from towns with population of over five lakh to towns with over one lakh population. Going

by Nielsen data, branded namkeens accounted for 52% of the total salty snack sales market, which was worth about Rs 9,400 crore last June.As per recent Nielsen data, branded namkeens accounted for 52% of total salty snack sales of about Rs 9,400 crore in last June. The industry estimates the market is one of the fastest in the packaged food segment, growing at upwards of 15%.Industry officials said price points are not so stringent in namkeens and companies can also adopt unconventional price points instead of Rs 5, 10 or 20 in categories like wafers and biscuits, hence allowing scope for higher margins.Retail major Future Group’s president (Food Bazaar) Devendra Chawla says the namkeen and regional snacks will be the next big bet for food companies in India. “Food is a culture in India where taste preference changes every 200 km, with the unbranded segment dominating the presence. This represents a huge untapped opportunity,” he says. The retailer too is expanding its traditional snack portfolio under the Ekta brand, which is growing in high double digit.

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More versatile design, more flexible material choice and management. And that is not

all, its outstanding efficiency allows the costs of plastic material to be reduced by up to 20%. This is the new modular Formsleeve+ labelling machine, the latest “creation” by Sacmi Labelling proudly presented today at the open house held at Sacmi Imola before an audience of international operators arriving from 21 countries and 4 continents. A great opportunity to preview a live demonstration of the Sacmi made technological jewel at work, thanks to a guided tour that allowed specially selected visitors to enter the group’s R&D lab, where the latest prototypes are developed and tested. This all took place naturally after a welcome presentation by Vezio Bernardi – General Manager of the Beverage division – who spoke about the Sacmi group, company almost a

Beverage

world hosted

at SacmiThe open house dedicated to the presentation of the innovative Formsleeve+ machine acclaimed as huge success

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century old with 4,000 employees in five continents and annual turnover of more than 1.2 billion euros. A growth it has boasted over the last three years – as far as employees and turnover are concerned – “mostly thanks to the performance of the group’s packaging division”, underlined Bernardi that has contributed 320 million euros to the overall turnover and almost 1,050 employees and includes metal and plastic closure-making machines, containers and complete bottling lines. Already world market leader in the ceramic machinery industry, Sacmi has in fact significantly contributed – with deep product and process innovations – to the development of avant-garde solutions for the beverage industry, establishing itself today – explained Bernardi – as the only company in the world capable of offering not only competitive “stand alone” solutions but also and above all integrated lines, from raw materials to bottles, from filling to labelling up to quality control. The absolute star of today’s open house – which visitors were able to admire in action – was without a doubt the Formsleeve+ machine, a true revolution in the world of labelling capable of guaranteeing a reduction in the costs of plastic material by up to 20%, increasing productivity, reaching 20,000 labels per roll along with the labelling speed reaching up to 50,000 BPH. The modular labelling machine allows sleeves to be produced and applied from MDO (machine direction orientation) rolls of film. During the process, the sleeve is sealed with a laser source controlled by a high speed scanner. A tunnel placed at the labelling machine outlet completes the heat-shrink process. Supreme quality combined with remarkable savings are guaranteed– among other things – by integration between label production and the labelling process while flexibility with regards to the various types of materials handled and production requirements is made possible by the Roll Fed technology, without – thanks to the use of the laser – producing any toxic gas during the process capable of contaminating the product or work environment. The best solution currently available on the market

– as John Pasqua, Labelling division sales director, explained– developed after careful analysis by Sacmi regarding the market, workplace safety and the clients’ requirements concerning the type of product. A second demonstration of the Formsleeve+ machine was held in the afternoon, which, in place of the laser, used a completely natural liquid substance that never comes into contact with the bottles. This innovative solution will be presented to international operators at the Drinktec trade fair in Munich this fall. Not only Labelling, however, for a day which focused on the advantages compression technology offers – the basis of CCM machines – with which Sacmi has deeply innovated its closing sector. Then the IPS, the brand new injection system for producing PET preforms, available on the market since last year and capable of winning the confidence of buyers thanks to its flexibility, quick changeover, excellent cycle times and outstanding energy savings. Completing the picture, Sacmi made filling systems – focusing particularly on the new BIG-COMBO solution that has already drawn the attention of the most important international market players – and machines for the production of PET bottles, with the all new range of improved SBF blowers, which has allowed Sacmi to become a leader in this sector as well. Up to end-of-line solutions and Bag in Box filling and packaging units, the best solutions currently available on the market designed especially for oils, wines and other high-quality food products requiring systems capable of protecting product integrity and organoleptic properties. All Sacmi solutions are equipped with vision systems, incorporated in the line or stand alone to assure accurate quality control of the finished product. The day ended with a visit to the Sacmi facility, where visitors had a chance to see several machines actually running. An appetizing opportunity for the visitors – in particular those from abroad – to “get a full dose” of Sacmi made innovations, a company with roots spanning back to 1919 and yet still capable of projecting itself into the future with continuous product and process innovations in all industry sectors it operates in.

Major snack makers like Haldiram, Bikaji and Lays (Pepsico) are in for a stiff competition as Rajkot-

based snack maker Balaji Wafers Private Limited plans to enter south and north Indian markets and set up manufacturing units there with estimated investment of Rs 200 crore in the next two years.“We are now planning to enter north and south India market within next two years and for that we are looking for strategic partnership with local players”, said Keyur Virani, director of Balaji Wafers. “We are searching land to set up our manufacturing plant in Uttaranchal and Madhya Pradesh. Moreover, company is also considering to set up production facility at Hyderabad in south India,” he said, adding that they would be investing Rs 200 crore to set up manufacturing units.According to Virani size of organised snacks market was about Rs 8,000 crore while unorganised market was around Rs 10,000-12,000 crore in India.Balaji Wafers is having about 65 percent market share in western Indian snack market. Company is present in Gujarat, Maharashtra, Goa, Rajasthan and some parts of Madhya Pradesh. It has turnover of over Rs 1,000 crore and is expecting 25-30 percent growth in 2013-14.“As Indian snack market is huge with major portion still unorganized, players like us have very good potential to grow in new areas. Our direct competition will be with Haldiram and Bikaji in north India while in south India we will have to compete with national players like Lays,” Virani saidThe company also recently doubled its production capacity at its Valsad plant in south Gujarat in line with its strategy to expand beyond west India.“We had invested about Rs 50 crore in Valsad plant and our production capacity has been doubled compare to Rajkot plant mainly for wafers. It is India’s largest production line,” claimed Virani.Rajkot plant produces 1,200 kg potato wafers per hour while in Valsad plant production capacity is around 2,500 kg per hours.

Balaji Wafers to set up manufacturing units in

south, north India

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Pipfruit New Zealand has launched Royal Gala apples in the Bangalore market.Royal Challengers Bangalore cricketer and former New Zealand captain Daniel Vettori launched the new season of Royal Gala apples at Fresh Produce India in Bangalore.

Pipfruit New Zealand CEO Alan Pollard said, “Demand for pure New Zealand apples in India is growing as new trade statistics indicate a 90 per cent increase in apple exports to India year-on-year to December 2012.”“This is the second season that crisp and delicious Royal Gala apples from New Zealand have been available in India, providing counter-seasonal supply to domestic produce,” he added.New Zealand apples are available in India from April to October. Iconic New Zealand cricketer Sir Richard Hadlee launched the brand in India in 2011.“New Zealand apples are known internationally for their crispness and great flavour,” said Vettori. “I’m excited that Royal Gala apples from New Zealand will be available again this season for Indians to enjoy. Having grown up enjoying New Zealand’s outstanding fresh produce, I know that Indians can be assured of outstanding quality and taste.”“New Zealand is world-renowned for its high quality produce. The growth shows that Indians are enjoying new varieties like Royal Gala when domestic produce is out of season. New Zealand is also working with apple farmers in India to build expertise in production efficiency,” said Richard White, New Zealand’s Trade Commissioner to New Delhi.

Recently, in Berlin, the German and the Indian government signed a statement of intention for bilateral cooperation in the seed sector. This is the first project with India

within the framework of the bilateral cooperation program of the Ministry of Food, Agriculture and Consumer Protection of Germany. This program is implemented by the German Plant Breeders Association and the National Association of Seed Producers of India, with support from both ministries of agriculture.Gerd Müller, Secretary of State for the Federal Ministry of Food, Agriculture and Consumer Protection of the German government, stated that the signing of this declaration of intent is an important step in the continuation of this partnership. The aim is to improve conditions for farmers and, especially, offer high value seeds adapted to the environment so as to be able to produce more and to do it in a sustainable manner. The population growth, climate change, and the dwindling resources are factors that make collaboration in the seed sector an increasingly important role in bilateral cooperation. This cooperation will also be felt in international organizations.

Germany & India

collaborate on seeds

The agriculture department plans to open 36 new vegetable centres across Nahik in a couple of months which will provide fresh vegetables directly from farmers to

consumers at reasonable rates. Currently, there are 21 vegetable centres in the city.An agriculture officer said, “Our aim is to eliminate middlemen between farmers and consumers and make vegetables available at moderate rates as compared to the market rates. We are targeting big housing societies in the city where people can get fresh vegetable directly from the farmers. The farmers will also get better rates for their produce and have formed group of around five farmers at each centre.” He added that 21 vegetable centres are already open.“Around 36 housing societies in the cities have demanded such vegetable centres. We already have 53 groups of farmers. We will soon hold meeting with the concerned housing societies and the group of farmers to open the vegetable centres.”

Agriculture department to open 36 new

vegetable centres in Nashik

NZ Royal Galas launchedat Fresh Produce India

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Cashew nut production in India has more than doubled over the last twenty years. Despite this, however, poor yield in comparison with competitors, such as Vietnam,

is still a concern for the industry. According to official estimates, raw cashew output in 2012-13 is about 7.3 lakh tonnes (lt) from an area of over 9.8 lakh hectares. This is against 3.48 lt from 5.65 lakh hectares in 1993-94 and 5 lt from 7.7 lakh hectares in 2002-03.Concerted efforts by the Directorate of Cashew and Cocoa Development coupled with that of National and State Horticulture Missions have resulted in the growth.Vietnam has improved its production in recent years, taking top spot in cashew production from India. Total raw cashew production in Vietnam in 1993 was 1.86 lt

India losing cashew ground to Vietnam

Tamil Nadu government is looking at ways to encourage farmers to cultivate hybrid varieties of grapes, which have good demand in overseas markets.

“Through our Grapes Research Centre, we have been trying to find ways and means for cultivating hybrid grapes and encourage farmers in it,” Agriculture Minister S Damodaran told the state Assembly.He was replying to Andipatti MLA Thangatamilselvan (AIADMK), who requested the government to look into ways for better grapes cultivation and sought more subsidies.The move aims to help farmers involved in grape cultivation in the state to generate higher income.While farmers in Madurai and Theni districts were getting low profits, farmers in Maharashtra were yielding good returns, because they were cultivating hybrid varieties, added Damodaran.

India encourage grape

cultivation for overseas

markets

According to a report by the consulting firm Belrose Inc., over the next decade the markets of China and India could triple their international demand for Apples.

The study was carried out in 16 Asian cities and looks at the potential consumption of apples, pears, kiwi and cherries, up to the year 2020.The main conclusion is that China and India will have to resort to importing considerably large numbers of products such as apples, pears and kiwis. The most sought-after product will be the apple, and US producers are already positioning themselves.In addition to China and India, other Asian markets such as Sri Lanka, Malaysia or Thailand will increase imports, although not to the same levels of China or India.

China and India could triple apple

imports

from 69,100 hectares. It shot up to 12.73 lt from a total area of 3.31 lakh hectares in 2011, according to the latest FAO statistics.The yield from a hectare is currently 3.8 tonnes in Vietnam against India’s 772 kg.Industry experts say India’s productivity issues are related to use of ild plantations for cultivation. De Abdul Salam, Vice Chancellor of Calicut University, who has made significant contributions to crop development, says that plantations require replanting with newer, higher yielding varieties. India has 24% of the world’s cashew production area and yet only manages to grow 19% of the total global yield, whilst Vietnam, with 10% of area under cultivation produces much more in terms of volume.

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The Indian food and agriculture industry has made significant strides in the past three decades,

meeting the challenge of securing production of basic staples to feed India’s growing population. In 2010, India was the world’s biggest producer of mango, banana, papaya, milk, spices, sesame, and castor oil-seed. Agricultural GDP increased at an annual rate of 3% between 1980 and 2012, making India the third largest agricultural producer by value (closely behind China and the United States). In the past decade, despite structural barriers, the Indian farmer has matched domestic demand growth with commensurate yield increases. However, the sector is yet to realise its full potential in terms of yield, processing and exports. A new FAIDA report by the Confederation of Indian Industry (CII) and McKinsey

India’s agricultural output to reach Rs 29.2 lakh cr by 2030: CII-McKinsey FAIDA report

& Company shows that the industry presently achieves only 50 to 60% of the potential yield for most crops due to poor technology adoption; weak links between farmers and industry; unexplored opportunities in branding, marketing and exports; lack of end-to-end infrastructure from farm to table; and a dearth of extension support, research and innovation, and entrepreneurship. At the same time, Indians are now spending much more on high value foods, and consumption is shifting from plant-based to animal-based protein, thanks to increasing disposable incomes and rapidly evolving consumer needs. And while agricultural productivity grew over the last decade, there has been a qualitative shift from basic foodgrains to high value agriculture, especially fruits and vegetables. Between 2000 and 2010,

high value produce moved from forming 38% to 45% of total produce by weight. The increase in the production of certain high value foods such as soya bean, potato, mango, banana, and poultry has been up to four times faster than basic produce like rice and wheat. “It is now imperative that India upgrade its agricultural practices and techniques, as well as well as accelerate growth in allied business fields such as food processing, in order to support the country’s consumption demand changes over the next 20 years,” says Adil Zainulbhai, Chairman of McKinsey & Company in India. “Future success depends on howIndia responds by ensuring sustainable supply to create a win-win situation for consumers and farmers. Robust agricultural growth can not only translate into greater exports, but also ensure poverty levels decrease at a

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rate faster than most other approaches, making it a necessary component of India’s inclusive growth model.” “If India is to realise its vision of becoming a global powerhouse in food and agriculture, it needs a second Green Revolution,” says Rakesh B. Mittal, Past Chairman, CII National Council on Agriculture & Chairman FAIDA 3. “We believe that India must shift from a programmes and schemes approach to a mission mode, to create an enabling environment and right policies for greater partnerships on PPP basis, attract large scale private sector investments and be aligned with the 12th Five Year Plan. We must look at inclusive and sustainable growth to ensure higher productivity and increased incomes for farmers.” The report takes a long-term view of the country’s agriculture and high-value food industries to ascertain how India can raise agricultural productivity and farmer incomes; enhance customer value delivery in food; scale-up existing food and agriculture businesses by 3 to 5 times their current size; and develop the required capacity and enabling infrastructure, as well as relevant policies to support inclusive and sustainable growth. It also examines in depth 5 key produce: mango, banana, potato, soya bean and poultry, which are likely to drive the next wave of growth in the industry. It suggests a detailed 12-point program, which could act as a roadmap for the sector as it sets its aspirations for 2030.

Key findings Major demographic and socio-economic changes between 2000 and 2010, such as increasing population, increasing incomes, rural to urban migrations, and an increase in rural per capita productivity has resulted in major shifts in food consumption trends and production patterns. Consumption demand is increasing, as India’s per capita GDP is expected to increase by 320% in the next 20 years[1], with a parallel increase in overall food consumption by 4% per annum from INR 11 lakh crore in 2010 to INR 22.5 lakh crore in 2030[2]. Given the expected rise in consumption, agricultural output (at farm-gate prices) could grow from INR 12.69 lakh crore in 2011 to INR 29.28 lakh crore by 2030. At the same

time, processing could grow from INR 1.1 lakh crore in 2011 to INR 5.65 lakh crore by 2030, while India’s food exports could grow from INR 1.4 lakh crore in 2011 to INR 7.72 lakh crore by 2030. • The last decade witnessed

yield increase across most crop categories, with a large scale shift to high-value agriculture: Agricultural productivity grew 8% over the last decade. There has been a qualitative shift from basic foodgrains to high value agriculture, especially fruits and vegetables. In 2000, basic foodgrains formed 60% of the total produce by weight, while high value produce formed only 38%. By 2010, there was a shift to high value crops, which formed 45% of total production. The increase in the production of certain high value foods such as soya bean, potato, mango, banana, and poultry has been up to four times faster than basic produce like rice and wheat. A study of each of the different crops shows a distinct shift by farmers to the high value portfolio in “pockets of excellence”, where strong demand–supply links have been forged, and increased yields and quality of produce have allowed successful exports in addition to catering to domestic demand.

• Increased policy focus and public funding:

A renewed policy thrust since the mid-2000s helped reverse the decline in agricultural growth of the 1990s. There was a 4.35 times increase in total agriculture outlay from the 10th Five Year Plan to the 11th Five Year Plan. The percentage outlay for agriculture increased from 5.2% in the 10th FYP to 5.6% in the 11th FYP. This was the highest proportion allocated to agriculture in the last 20 years. Several landmark schemes have been introduced by the government in the agriculture sector since 2000, for example, the Rashtriya Krishi Vikas Yojana (RKVY), the National Food Security Mission, the Pulses Development Programme and the interest subvention scheme on crop loans.

However, while the last decade saw these positive trends, Indian agriculture also

missed several opportunities to bolster growth. • Yield increases across crops have

slowed over the last 4 decades: While the overall yield continues to improve, there has been no scalable success story of substantial yield improvement. The few successes have been small, sporadic and led by the private sector. In fact, yield increase has actually slowed down across crops over the past few decades, even though these crops have still not attained their optimum. Several possible reasons exist for this. Inadequate research quality, insufficient technology, and ineffective extension services to farmers translated into a lack of awareness of farming best practices and low technology adoption. Outdated practices and inputs are another reason: outdated chemicals for fertilisers and pesticides, low investment in seed technology, and a heavy dependence on the monsoon season for irrigation. Only 35 to 40% of cultivated land in India is irrigated and there is minimal penetration of new water saving technologies like drip irrigation.

• Less than 10% of agricultural produce underwent processing in India:

Valued at INR 66,000 crore in 2010 (at constant 2004 prices), the food and processing industry GDP in India is just 10% of the agricultural GDP. Developed countries such as the United States consume over 60% of food across categories in the processed form. The first FAIDA report envisaged that the processing sector would likely become an INR 215,000 crore to INR 225,000 crore sector in 2005 (at 2004 prices). However, India has only partially realised the opportunity, mainly due lower demand for processed food and poor investment in infrastructure.

• Low involvement of organised sector:

Despite shifting consumer preferences, the organised sector is hardly present in high value categories. The few instances of corporate participation have shown their ability to create win-

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win solutions for all stakeholders by transforming value chains, improving yields and reducing wastage. However, these successful pilots have failed to achieve scale. The lack of scale is primarily due to structural barriers in farm gate access and the lack of infrastructure to link the benefits of value addition to the consumer. Systemic difficulties in farm gate access stem from three reasons—lack of adequate farm gate infrastructure (such as storage centres and primary processing centres), fragmented land holdings which make it difficult for companies to source consistent quality and quantity, and restrictive policies that limit farm gate access.

• Unfulfilled export potential: India has made good progress in

exports, going from INR 90,000 crore from 2006 to 2010 to INR 1.35 lakh crore in 2012. However, import dependency on critical items such as pulses and edible oil remains high. This is despite the fact that India is the third largest producer of food globally, and has a sizable presence in several crops that are relevant to both the export market

and industry. The share of exports is about 12 to 14% of production. Low yields and poor infrastructure limit competitiveness, particularly from farm gate to markets and ports. Poor infrastructure for primary processing, packing, grading and inadequate cold chain storage have further held back Indian exports.

With improvements, the country could aspire to improve farmer income by over four times (in real terms) to keep pace and reduce the gap with national average income in 20 years. Consumers could also benefit from the increase in supply to match per capita consumption, and access to safe and healthy food at affordable prices. The report lays out 12 interventions that could transform the sector’s performance. Four of these are already aligned with the missions and projects announced in India’s 12th Five Year Plan (12th FYP): A “National Agricultural Technology Mission” to create high yielding, disease-resistant seed varieties; set up targeted “farmer education” and distribution programmes; and promote mechanisation, technology and modern irrigation best practices. A “National Agricultural Sustainability

Mission” to map and test soil health, ensure integrated nutrient management and sustainable cropping practices, encourage crop diversification and train the extension engine to focus on soil and water sustainability Scalable farmer–industry partnerships to encourage various emerging models of successful interactions such as Farmer Producer Organisations (FPO) and Farmer Producer Companies (FPC), local aggregators to help farmers with extension services and yield improvement, organised agri-input retail to deliver suitable technologies and inputs to farmers, open PPP models and corporate farming for high-value agriculture for exports A favourable policy regime, which improves agricultural marketing mechanisms should enable farmers to decide to whom and where they can sell their produce and ensure incentives for strategic industry initiatives. The effectiveness of the current policy framework could be reviewed. Food processing growth through an emphasis on branding to deliver customers a value proposition and brand promise for food delivered through a set of norms to assure freshness, healthiness,

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quality, traceability. A “National Agriculture and Food Export Mission” in select categories to actively promote the export of select crops. Currently, India loses out on exports with other producers due to the failure to be cost competitive, the lack of a powerful “Indian” brand in food, weak adherence to quality and safety standards and poor infrastructural linkages. In high-value agriculture categories particularly in several fruits and vegetables, India could aspire to be a top 5 global exporter Private capital and world class expertise would ensure adoption of the latest technologies and practices in all parts of the agriculture and food value chain. A “National Farm Gate to Market Infrastructure Authority” (NFMIA) could improve and better integrate the current farm gate infrastructure in terms of sorting, harvesting, packaging, storage and transportation through an integrated national master-plan. There are many bodies currently involved in building and managing different parts of this infrastructure. However, there is fragmentation and insufficient

accountability for an integrated solution. Mega demand servicing and export hubs will allow companies to procure, store, process and export from a single location. Such hubs will help put in place the necessary forward and backward linkages with consumption markets and agriculture production zones, along with the storage infrastructure and provide for comprehensive facilities across the value chain. Agricultural extension services and new infrastructure creation are imperative to integrate technology into the farming system. The government could consider PPP models in extension services where possible, enforce performance standards at farmer training centres at the district level and improve quality of public extension services, and encourage scaling up of farmers cooperatives, as well as encourage agricultural institutes to participate actively in extension services. Four to five world class food and agricultural universities and research laboratories to enable research and innovation, with commercialisation through private investment and market linkages. This could be creation of new

institutes and upgradation of existing agricultural universites Agri-business focused angel and venture capital funds as a PPP initiative between central and state governments and private capital providers to lead the next wave of growth. The central and state governments and private sector could contribute to a professionally managed fund to finance innovative entrepreneurship ideas, as well as set up “business incubation centres” to help farmers shape their business ideas and train them on aspects like financial management, marketing and commercialisation, and establishing networks with industries. “These 12 interventions could meaningfully transform India’s food and agriculture sector and improve the welfare of all its stakeholders,” says Barnik Maitra, Partner, McKinsey & Company. “However, there must be strong collaboration between the centre, state, and industry for this to occur. Current governance and implementation mechanisms need to be significantly strengthened and new ones introduced to drive implementation.”

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BASF presented NewtritionTM Asia Research Grants to eight scientists to recognize their work

in advancing heart health research. The program provides a scientific platform for researchers to connect, collaborate and promote the awareness of food ingredients throughout Asia.The 2013 BASF grant program targets China, Indonesia, Singapore and India. Consumers in these emerging countries are experiencing rapidly changing lifestyles, for example due to technology replacing labor and westernizing diets. These changes are resulting in an increasing cardiovascular disease rate, causing a growing public health risk.Plant sterols are one option to meet this growing health risk: These phytosterols can be found naturally in vegetable oils, legumes, nuts and grains. They lower LDL cholesterol levels and help to block the absorption of dietary cholesterol into the bloodstream. An intake of 1-3 grams of plant sterols and sterol esters per day can substantially and consistently lower blood levels of total cholesterol by 6-10% and LDL-cholesterol by 8-15%.1 “While plant sterols have been used extensively in Europe and the United States, awareness and research in Asia is still very limited,” said Tina Low, Director, BASF Human Nutrition, Asia Pacific. “By focusing this year’s grant on Asian countries, BASF hopes to generate more

BASF addresses rising heart health issues in Asia with grants advancing plant sterols research

research on the health benefits of plant sterols.”BASF is proud to announce the recipients of the 2013 NewtritionTM Asia Research Grants:• Dr. Stephen F. Burns, Nanyang

Technological University, Singapore, “Combined effects of dietary plant sterol supplementation and exercise on postprandial triglyceride responses”

• Dr. Wai Mun Loke, Nanyang Polytechnic, Singapore, “Effects of pure dietary phytosterols on inflammation and lipid peroxidation in vivo”

• Prof. Seeram Ramakrishna, National University of Singapore, Singapore, “Encapsulation of plant sterols/stanols in starch and protein matrix”

• Dr. Nancy Dewi Yuliana, Bogor Agricultural University, Indonesia, “Anticancer activity of sterols- rich artificial rice in Balb/c mice”

• Dr. Sandhya Narasimhan, Kallam Anji Reddy Centre, India, “Dietary phytosterol supplementation and their effects on inflammatory status: an intervention trial study among overweight obese south Indians”

• Dr. Lihua Song, Shanghai Jiaotong University, China, “The effects of phytosterol on high diet induced non-alcoholic fatty liver disease (NAFLD)”

• Ruirong Pan, Affiliated Hospital of

Jiangsu University, China, “A survey on intake of plant sterols by patients of type 2 diabetes and its complications”, Young Investigator Grant

• Dr. Shuang Rong, Chinese Center for Disease Control and Prevention, China, “Study on the protective effect of PS-ALA on age associated memory impairment in rats”, Young Investigator Grant

The researchers’ winning proposals were selected based on review for scientific merit conducted by BASF’s Scientific Advisory Committee. The committee is composed of scientists from academia, government and industry. Each researcher received a grant of €25,000 in local currency to fund a 12-month study. Researchers will present their findings at the 2014 grant program ceremony.“The Asia NewtritionTM Research Grant Program shows how an industry leader like BASF can work together with the scientific community to advance public health throughout Asia and beyond,” said David Cai, PhD, Scientific and Regulatory Affairs, BASF Human Nutrition, Asia Pacific. “Through these new research initiatives, we aim to lower cholesterol levels and thus foster heart healthy lifestyles. We know that many Asians are not getting enough plant sterols in their diets, so we hope to support research into supplementation.”

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Chennai Bakery Owners Association


National Food Security Policy and Global Market PlaceFrom the last couple of year,

the per capita availability of food is stagnating in the country. In fact, per capita availability of major food items like pulses, oilseeds, etc. is going down in India. This has not only let to price rise but also making socio-economic and political environment in India vulnerable to instability. Gravity of food security will also impact India’s standing in global politics and diplomacy.Unfortunately rising food prices are not only hurting us but also many countries in the world mainly countries with large population and where population density is high.The only way to address the issue to price rise and availability of food is by increasing the supply of food. The biggest constraint and challenge in increasing food supply is the availability of land suitable for production.There are two options to address this issue:

Need for Offshore Land Procurement Policy in Land Surplus Countries for Ensuring Global Food SecurityBy: Vijay Sardana

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1. Availability of land suitable for production

2. Investment in land to make it suitable for desired level of production.

In the last few five-year-plans we tried both option within India but the expected results are not visible due to various reasons. It is high time we should start exploring the option one outside India. In fact many countries already sensed this challenge and started making serious plans to address this issue for their own food security.One of the policy impacts of the food and commodity price crisis of recent years on the world food system is the proliferating of activities to secure commodities from all over the world and acquisition of mines, gas fields and farm lands in developing countries by other developed and developing countries seeking to ensure their food and other essential supplies in place of purely dependent on globalised open market trade. Increased pressures on depleting natural resources, potable water scarcity, export restrictions due to reduced inventory imposed by major producers when food prices were high, and growing distrust in the functioning of regional and global markets, financial crisis and its impact on currency valuations and trade, other political and economic reason as well, have pushed countries which are short in food, land and water to find alternative means of producing food within and outside the country.

What is the Global Scenario in Land Procurement?Food-importing countries with land and water constraints but rich in capital, such as the Gulf countries, China, European Countries, etc. are at the forefront of new investments in agriculture land abroad.In addition, countries with large populations and food security concerns such as China, South Korea, and Japan are looking for secure food supplies overseas. These food security related investments are targeted toward those developing countries where labour and production costs are much lower and also where land and water are abundant.Other factors that are under consideration are logistics and transportation issues. It means geographical location and

proximity and climatic conditions for preferred staple crops in the investors home country. In addition to procuring land for food, many countries are seeking land for the production of bio-fuel crops and mining purposes.

How Agriculture Land is procured in Other Countries?Depending upon the flexibility and comfort level, many governments, either directly or through their state-owned entities and public-private partnerships, are in negotiations with other governments.Many big deals are already closed in various forms. These land deals are on arable land leases basis, concessions basis, or direct purchases abroad. Like any other business transaction, the size and terms of contracts differ widely.Some agreements do not involve direct land acquisition, but seek to secure food supplies through contract farming and investment in rural infrastructure, agricultural technology, including irrigation systems and roads and other support services to farmers.In past decades, land acquisition abroad has been driven by the profit-making motives of the private sector in developed countries and has often focused on perennial tropical cash crops rather than basic staples. Coffee, Banana, Palm oil farms, etc are such examples.

Need for Foreign Land Procurement PolicyLand Procurement policy will have the potential to facilitate much needed investment and technology inputs into agriculture and poor rural areas in many low cost developing countries.If it is done without any proper policy and safeguards, like any other FDI, this will also raise concerns about the impacts on poor local people, who risk losing access to and control over land and other resources on which they depend for their livelihood and income.The uncontrolled approach towards land procurement may create serious political issue and may impact bilateral relations between India and the partner country. It is crucial to ensure that these land purchase deals and the social and political environment within which they take place, are designed in such a ways

that it should reduce the perceived threats and address apprehensions expressed by civil societies. But at the same time, it should facilitate the opportunities, from land procurement deals, for all parties involved.

Natural Resource Valuation and Land DealsMore recent international land deals are partly an effect of the larger role of changing economic valuation of land and water. Higher agricultural prices generally result in higher land prices, because the expected returns to land increase when profits per unit of land increase.Given that the food price crisis has increased competition for land and water resources for agriculture, it is not surprising that farmland prices have risen throughout the world in recent years. According to media reports, agriculture land prices jumped by about 20% percent in Brazil, by 30% percent in East Europe, and by 15 percent in the some parts of United States.

Role of Water and Land ProcurementGlobally water is becoming a limiting resource for any development activity. Developed water sources like canals and dams are almost fully utilized, but due to growing demand for food agricultural demand for water is expected to increase substantially in the future.While planning to procure agriculture land abroad, this aspect must be kept in mind.

Land Procurement Policy must be balancedIn principle, additional investments in agriculture in developing countries by the private and the public sector should be welcome.At the same time, land has an emotion and social value besides as a financial asset for the land owner. That is why, very often land deals land upon into litigation and bloody disputes between land owners and land seekers. The scale of procurement, the terms of procurement, and the speed of land acquisition have provoked opposition in some parts of India and also in target countries. Singur in West Bengal, SEZs in various parts of India are classic example.

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There are similar examples in various parts of the world. According to some news reports, the Philippines blocked a land contract with China because of serious concerns about its terms and legal validity, as well as about its impact on local food security.In Mozambic, people resisted the settlement of thousands of Chinese agricultural workers on leased lands—a situation that would limit the involvement of local labour in the new agricultural investments. In Madagascar, negotiations with Korean Daewoo Logistics Corporation to lease 1.3 million hectares

for maize and oil palm reportedly played a role in the political conflicts that led to the overthrow of the government in 2009.News reports also have helped to understand these developments, but details about the status of the deals, the size of land purchased or leased, and the amount invested are often unclear.It is important to note that there are no well-documented examples about land deals abroad. Many companies prefer to keep it as a trade secret because of various reasons. This lack of transparency limits the involvement of governments and other civil society in negotiating and implementing deals. This also limits the ability of local stakeholders to respond to new challenges and opportunities.

Opportunities from Large-Scale Land ProcurementGiven the changing global economic and trading environment, the agricultural sector clearly requires more investment to feed the world. At the same time there is an urgent need for greater development in rural areas to check the spread of violence and extremism.The financial inability of many under-developed and developing country governments to provide the necessary infusion of capital, large-scale land procurement can be seen as an opportunity for increased investment in agriculture in

these poor economies. Such investments also bring many possible benefits for the rural poor, including the creation of a potentially significant number of farm and off-farm jobs, development of rural infrastructure, and poverty-reducing improvements such as construction of extension services, basic schools and healthcare facilities and other social infrastructure like markets and recreation places.Other possible positive spill over include investment for better and newer agricultural production technologies and practices and post harvest management practices. Food price stability and increased production of food crops can also supply local and national consumers

in addition to international markets. This will also help in controlling the over-exploitation of natural resources in many countries where soil and water is already under stress.

Negative Side of Land Procurement PolicyAt the same time critics see these opportunities as undue optimism, emphasizing the threats that the land acquisitions present to people’s livelihoods and ecological sustainability. The arguments used against SEZs in India also get support in many parts of

the world. Even though some of the land-lease agreements make provisions for investments in rural development and local employment potential, these deals may not be made on equal terms between the investors, land owners and local communities. Very often, the bargaining power in negotiating these agreements is on the side of the buyer, especially when its aspirations are supported by the host state or local elites. Small landholders who are being displaced from their land cannot effectively negotiate terms favourable to them when dealing with such powerful national and international corporate or agencies, nor can they enforce agreements if the foreign investor fails to

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provide promised jobs or local facilities. Like in case of SEZ land disputes in India, unequal power relations in the land acquisition deals can put the livelihoods of the poor at risk.This inequality in bargaining power is make situation worse when the small land holders whose land is being acquired for projects have no formal title to the land, but have been using it under customary tenure arrangements since ages. Since the state often formally owns the land, the poor run the risk of being pushed off the plot in favour of the investor, without consultation or compensation.It is important to note that agriculture land is an inherently political issue across the globe, with land reform and land rights issues often leading to violent conflict.The addition of another actor competing for this scarce and contested resource, like land, can add to socio-political instability in developing countries. In some cases, the land leases are justified

on the basis that the land being acquired by the foreign investor is “unproductive” or “underutilized.” In most instances, however, there is some form of land use, often by the poor and land less people for purposes such as grazing animals and gathering fuel wood or medicinal plants. These uses of land are very often undervalued in assessments by various agencies because these products and activities are not marketed, but they can provide valuable livelihood sources to the rural poor and landless.Large-scale land acquisitions, especially near villages, may further jeopardize the welfare of the poor by depriving them of the natural and almost free safety-net function that this type of land and water use fulfills.

What is the Right Approach?The best approach is having sensible planning by keep all stakeholders interest in mind. Strong institutions can give small

stakeholders enough bargaining power to effectively convey their concerns and negotiate on favourable terms with the other powerful players. Experience in natural resource management and smallholder marketing has shown that by acting collectively the poor can stimulate a shift in power relations, which in the case of land acquisitions can help preserve livelihood options. These efforts can be even more effective when civil society gets involved on the behalf of the poor.The benefits to local stakeholders also depend on how land procurement and investment projects are designed and managed. In extreme case, conversion of land to large-scale farms or plantations operated by foreign labour causes loss of local land rights and generates little employment for local skilled or unskilled labour. Such projects are likely to face local opposition.By proper planning, projects do not need to evict existing local farmers.Contract farming schemes that involve existing farmers and land users can enable smallholders to benefit from foreign investment while giving the private sector room to invest. Under such arrangements, small farmers are provided with business development services such as inputs, technical assistance, and credit by the private sector actors, which could be domestic or international. In return, these farmers commit to sell their output to these providers, subtracting the cost of the supplied inputs from their total profits. This is like Amul model or cooperative dairy model or poultry business model in Tamil Nadu.This approach takes into account the threats posed by large-scale land acquisitions to the livelihoods of the poor and capitalizes on the opportunities for smallholders to benefit, creating a win-win scenario for both local communities and foreign investors.The demand for land with access to water has increased not only across borders, but also within countries. This increased mobilization of the domestic land market can also have adverse effects on equality in contexts where small farmers lack defined property rights and judicial systems do not have a capacity to protect rights, like in many African countries.Land issue requires more attention through sound monitoring, statistical assessments,

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and land rights policies. The ecological sustainability of land and water resources slated for foreign investment is another important issue when considering large-scale foreign investments.Introducing intensive agricultural production can threaten biodiversity, carbon stocks, and land and water resources, like paddy and wheat cycle has destroyed Haryana, Punjab and western UP.Converting forests or grasslands to mono-cropping system like wheat, paddy, maize or sugarcane production system will reduces the diversity in flora, fauna, and agro-biodiversity, as well as above-ground and sub-surface soil health. It will also impact water table as well.Many tropical soils are unsuited for intensive cultivation. Although fertilizer use and irrigation can overcome some of these limitations, these activities can lead to long-run sustainability problems such as salinity, water-logging, or soil erosion if they are inappropriately designed. Learning from Green Revolution in India should be used. These problems will occur if the outside investors focus on short-term profit or lack a sound understanding of the local ecology and its significance to local community. Critics also mention that irrigating the farm landholdings of foreign investors may take water away from other users in the area or from environmental flows, and intensive use of agrochemicals contributes to water-quality problems in groundwater and runoff.Foreign investors with short-term leases may have a short-term perspective on the sustainability of intensive agriculture and less identity with the area than local residents. Thus, it is important to conduct a careful environmental impact assessment that not only looks at effects on the local area, but also considers off-site impacts on soils, water, greenhouse gas emissions, and biodiversity.

Precautions should be in-built Lease AgreementsLand-lease contracts should also include safeguards to ensure that sustainable practices are employed.

Negotiations should be toward balanced policiesA balanced approach can help address the

threats and tap the opportunities related to foreign direct investment in agricultural land in under-developed countries.First, the threats need to be controlled through a code of conduct for host governments and also for the companies willing for land procurement.Second, the opportunities need to be facilitated by appropriate policies in the countries that are the target of these land procurement investments.

Key elements of a code of conduct for foreign land procurement should ensure transparency in deals.• Ensure Transparency in Negotiations• Take civil society and media into

confidence• Respect local traditions and concerns• Ensure compensations, keeping in

mind fairness for the land losers, if any;

• Sharing of benefits from the wealth creation

• Ensure Environmental sustainability.• Adherence to national trade policies• Companies must act like good

corporate citizens.• Assist in development of social

infrastructures like health care and education facilities

• Ensure fair trade practices while dealing with local stakeholders

• Interest of land offering country should be protected so that they feel encouraged to extend the cooperation

• Focus has to be food security not profiteering from food trade

• Value of commodity supplies from such land banks must be based on cost plus basis to protect food security.

• The least cost producer should be the reference price for commodity price. This will improve global resource utilization efficiency.

• Democratic institutions should be promoted to create local participation in decision making and voice to local population against injustice by land use operator.

Important: Like we have Free Trade Agreements and Double Taxation Avoidance Treaties with many countries, similarly there can be agreement for land utilization for food production on bilateral basis as well.

In the longer run, a healthy trade relationship could grow out of such investment islands, building trust in trade, at least on a bilateral basis and potentially more broadly, in an increasingly volatile world food system to address domestic food security concerns.

The Way ForwardForeign investment in land of underdeveloped countries and other developing countries by government of India and Indian companies can provide key resources for agriculture, including development of needed infrastructure and expansion of livelihood options for local people. This issue must be developed in a very transparent and professional manner.It is therefore in the long-run interest of India, host governments, and the local people involved by ensuring that these arrangements are negotiated in transparent manner, proposed practices are sustainable, and benefits are shared in a fair manner.It is also advisable to have a good understanding of combination of international law, government policies, and the involvement of civil society, the media, and local communities to minimize the ill effects on bilateral relations and national good will and at the same time it must benefit all stakeholders.

Points for Consideration:1. Should India look for land

procurement outside to feed growing population and to reduce stress on domestic natural resources because of very high density of population? If not, what are the alternate options before policy makers to ensure sustainable food security?

2. In case private companies wants to buy land outside India, should there be a regulation to government their conduct outside India because their conduct may have serious political and diplomatic implications?

3. What should be the partnership arrangements between Government of India, the host government and the investors from India?

You may be having your views on the subject. Please do write your views and comments on the issues mentioned

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Globally, heart and vascular disease, including hypertension, is expected to affect about 250 million people by the middle of the next decade. But the real tragedy is that much of it is preventable.

A healthful diet and at least moderate daily activity goes a long way to reduce risk of disease or death from cardiovascular disease (CVD). Food and beverage processors can’t help much with the latter, but they’ve been making strides in developing products for cardiovascular health. At the heart of these heart-smart offerings are a number of ingredients known to play specific roles in cardiovascular protection.

Heart Health, Naturally

Keep It LegalHealth claims characterize the relationship of a substance to a disease or health-related condition and require prior FDA approval or notification to FDA of authoritative status. There are permissible health claims regarding the relationship between substances (including antioxidant vitamins) and heart disease.If a product qualifies for an unqualified health claim (based on significant scientific agreement) or a qualified health claim (based on limited evidence), all labeling statements must be consistent with the summary of scientific information and the model health claims stated in the relevant regulation. FDA takes the position that the use of a heart symbol in labeling is an implied health claim. Under most circumstances, a food is not permitted to bear health claims if it contains a “disqualifying level” of fat, saturated fat, cholesterol or sodium. And the so-called “jelly bean” rule, which applies at least to health claims authorized under the Nutrition Labeling and Education Act (NLEA), requires that a food must generally contain, prior to fortification, at least 10 percent of the daily value for vitamin A, vitamin C, calcium, iron, protein or fiber.

Heart health isn’t just about removing certain ingredients, such as transfats and hydrogenated oils. It’s also about adding ingredients, such as omega3s,

fiber, antioxidants, CoQ-10 and phytosterols.

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PhytosterolsSome of the most significant phytochemicals hitting the mainstream are plant sterols, (phytosterols). Research shows they can lower LDL cholesterol associated with heart disease risk without affecting HDL cholesterol levels. Plant sterol esters (or “stanols”) are more soluble in fat and during digestion compete with cholesterol and thereby reduce their uptake.The FDA has approved the following food health claim for phytosterols: “Foods containing at least 0.65g per serving of plant sterol esters or 0.4g of plant sterols, eaten twice a day with meals for a daily intake of at least 1.3g of plant sterols or 0.8g of sterols as part of a diet low in saturated fat and cholesterol, may reduce the risk of heart disease.”According to an assessment published by Enzymotec Ltd., phytosterols are now “among the strongest market leaders in terms of functional, science-based ingredients capable of addressing specific health benefit or health concern.” The company’s CardiaBeat brand sterol formulation is suitable as a fat replacer in such food applications as bars, dairy products, spreads, cooking oils and dressings. Products using the phytosterols can also be eligible to include functional claims for cholesterol or CVD risk reduction Cincinnati-based Cognis Corp. makes Vegapure natural plant sterols for use in food and beverage formulations. “Phytosterols offer a safe, natural and clinically proven way to create products that command a real competitive advantage in the heart healthy sector.The Vegapure line of plant sterol esters is available in liquid and water-dispersible powder forms suitable for a wide variety of products, including bread spreads, dressings, bars, yogurts, beverages, cereals, pastas, sauces, snacks, confections and even ground roasted coffee. The company offers co-branded consumer marketing support under its Heart Choice brand.Cargill is covering multiple ingredient angles of heart health with its highly successful Corowise plant sterols, as well as its Prolisse brand of soy protein isolate and its Barliv barley beta-glucan. Corowise plant sterols have been clinically shown to lower cholesterol,

and products with Corowise are eligible to make the following approved health claim: “Foods containing at least 0.4g per serving of plant sterols, consumed twice a day with meals for a daily total intake of at least 0.8g, as part of a diet low in saturated fat and cholesterol, may reduce the risk of heart disease.”

AntioxidantsAntioxidants have a solid scientific track record for exhibiting positive effects on heart health. Antioxidants, especially those derived from newly popular “superfruits” such as açai, mangosteen, goji and pomegranate, are only getting more play as processors catch on to their suitability for a variety of products.These fruits are all very high in antioxidant compounds, especially anthocyanins. Research has shown that not only do anthocyanins protect against oxidative damage to cells, they can help reduce inflammation in epithelial tissues, such as those which line arterial walls, counteracting the build-up of arterial plaque. (For more on these superfruits and their healthful compounds, see “Caution: Botanicals at Work”)Pomegranate, one of the hottest of the superfruits, may be effective at reducing atherosclerosis, hypertension and other cardiovascular disease in amounts as little as 50ml of pomegranate juice per day. One of the main pomegranate antioxidant compounds is a polyphenol called punicoside. PL Thomas Inc., N.J., developed P40p, a pomegranate extract containing a minimum of 40 percent punicoside. The calorie-free product suitable for a wide range of functional foods is the only kosher-certified pomegranate extract available.Resveratrol is an antioxidant polyphenol in a subclass called “procyanidins” which researchers believe is the ingredient in red wine and grape skins that contributes to heart health. Researchers found procyanidins suppress production of a protein called endothelin-1 that constricts blood vessels. Several beverage makers are currently testing new heart-healthy beverages with Resveratrol.

From Fish to NutsThe omega oils, especially DHA and EPA, have earned an abundance of recognition for their value to heart health (as well as a

number of other benefits: See “Wellness Foods Trends 2007”) Omega-3 fatty acids help lower blood triglyceride levels, aid the anti-inflammatory response and help reduce arterial plaque. Increased omega-3 in the diet is directly associated with decreased blood triglycerides.Although marine-derived omegas have the highest bioavailability, the beneficial omegas are available from plant sources such as cranberries, flax and walnuts. Odorless, flavorless highly-stable versions of fish-derived omega-3s by such manufacturers as Ocean Nutrition Canada Ltd. Dartmouth, Nova Scotia, is fulfilling a worldwide demand for omega oils that’s increasing by double-digit percentages.Wright Groups, La., makes Supercoat omega-3, a microencapsulated omega-3 fatty acid available in two different powder forms. The microencapsulation process masks unpleasant taste, odor or organoleptic characteristics while enhancing stability, increasing shelf life and protecting against extreme temperature or pH fluctuations during processing, handling and shipping.Martek Biosciences produces a marine-derived, vegetarian omega-3 product called life’sDHA, from microalgae. It’s suitable for use in food and beverage formulations and infant formula. In 2003, following a campaign by the International Tree Nut Council, the FDA issued a “qualified health claim,” allowing that eating 1.5 oz. of most nuts “may reduce the risk of heart disease when they’re part of a diet low in saturated fat and cholesterol.” Nuts contain several antioxidants, including vitamin E and selenium, along with plant sterols and other phytochemicals. One study cited by the Almond Board of California, Modesto, Calif., described how almonds reduce inflammation by about the same level as taking a first-generation statin drug.Olive oil is a classic ingredient with a long research history of lowering LDL cholesterol without decreasing HDL. According to the Oldways Preservation Trust, Boston, developers of the Mediterranean Diet Pyramid, populations with high intake of olives and olive oil show lower incidence of CVD even with average dietary fat intakes of 35 percent.

Vitamins for the HeartBecause of its “best of both worlds” ability

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as a preservative and a nutraceutical, vitamin E tocopherol — has become one of the most effective antioxidants used in food processing. Vitamin E is a strong antioxidant and may improve cardiovascular health in other ways, including maintaining epithelial-cell integrity and enhancing immunity.Cognis Corp. makes Covi-ox T-95 EU, citing it as the “highest potency, natural mixed-tocopherol ingredient available (and) specifically developed to meet the expanding range of global applications for functional foods.” Covi-ox acts as an effective antioxidant suitable to a broad range of foods, protecting against oxidation, extending shelf life and preserving a food’s flavor, aroma and color.Palm oil is a rich, natural source of antioxidants, especially the tocotrienol form of vitamin E. This tropical oil has also enjoyed increased attention as a desirable substitute for transfats. Transfats have been under fire for increasing the risks of CVD. Although palm oil is a saturated fat, research shows saturated fats from plants do not seem to have the same negative cardiovascular effects as those from animal sources. Moreover, palm oil has been shown to favorably increase HDL levels.Vitamin K has emerged as another ingredient for better cardiovascular health. Already well-established for its role in blood clotting, research supports K’s strong role in building the blood vessel-wall matrix. Vitamin K2 is a newly recognized form of vitamin K that has been strongly linked to cardiovascular health, particularly preventing arterial calcification (hardening of the arteries).Vitamin K-dependent proteins help inhibit vascular calcification, and vitamin K2 is needed to activate those proteins. PL Thomas just released its MenaQ7, an extract of fermented soy (natto) that provides natural vitamin K2 as menaquinone-7 (MK-7). In studies, it has proved to be the most bioactive and bioavailable form of all vitamin K forms.Vitamin D is usually thought of in relation to bone health. But vitamin D plays a role in healthy hearts, too. It regulates calcium, vital for regulating the flow and exchange of ions throughout heart and vascular tissue and balancing the electric charge that keeps the heart ticking. Vitamin D

also regulates the kidneys’ production of rennin, a hormone that controls blood pressure.CoQ-10, although not a vitamin, is a vitamin like coenzyme critical to heart health for its role in strengthening the heart muscle, acting as a powerful antioxidant that also enhances vitamin E and reducing the potential for cholesterol to stick to the arteries.

Grains and FiberHealth experts note that increasing whole grains in the diet can reduce risk of CHD by up to 40 percent. Hundreds of studies over several decades have shown heart disease incidence and risk goes down as consumption of fiber and whole grains goes up.The council stresses the complete nature of whole grains when it comes to ingredients for a healthy cardiovascular system. Not only do whole grains contain fiber, they are replete with antioxidants, phytosterols, vitamin E, folate, omega-3s, beta-glucan, phytate, selenium, calcium and magnesium — all of which contribute to keeping arteries clear and the heart pumping. A recent comprehensive review of the science in the European Journal Clinical Nutrition found “that regular consumption of whole-grain foods can reduce incidence of heart disease and stroke by 20 to 40 percent.”Oats, including oatmeal and oat bran, have proven particularly powerful at lowering levels of LDL cholesterol. The Quaker Oats Co. had the first product to receive the FDA heart-health claim oatmeal. Today, the company (a division of PepsiCo) is successfully building on its strong heart-health position with its Take Heart Instant Oatmeal line, targeting consumers concerned about high blood pressure and high cholesterol. It has 1.5g soluble fiber from whole-grain oats for lower cholesterol and added potassium to help lower high blood-pressure risk. It also includes added antioxidants, vitamins E and C, and vitamin B for healthy arteries.General Mills Inc.sboasts one of the earliest successes in making heart-healthfulness a point of difference with its Cheerios brand. Made from whole grain oats, Cheerios is becoming an everyday health message. It is also billed as “the only leading ready-to-eat cereal that has been clinically proven to lower blood

cholesterol levels when eaten as part of a diet low in saturated fat and cholesterol,” according to the company.This flagship brand of General Mills has done a fantastic job of convincing consumers how good it is for their hearts. The latest project has Cheerios partnered with “The Heart Truth” and “Women-Heart” efforts to raise awareness about the risk of heart disease in women.Kellogg Co. has been leading the heart healthy fray since the 1990s, with its introduction of “Heartwise” made with psyllium, a source of soluble fiber. The company created Smart Start Healthy Heart, which it promotes as “the only national cold cereal with ingredients that may help lower both blood pressure and cholesterol.” Kellogg also continues to expand its Kashi line in a heartfelt direction. Kashi’s Heart to Heart breakfast foods are specifically tailored to help promote healthy arteries and healthy blood pressure. They’re loaded with soluble oat fiber to help reduce cholesterol. The waffles, cold cereals and instant hot cereals read like a laundry list of right-for-your-heart ingredients: vitamins E, C and beta carotene, grape seed extract, green tea extract and lycopene. Heart to Heart foods also provide 100 percent of the daily values for vitamins B6, B12 and folic acid.ConAgra Foods Inc launched its decades-old Healthy Choice line. Today, the company is promoting its Sustagrain barley as a new boon for formulators creating heart healthy foods. The barley, by carrying a unique micronutrient composition, delivers higher levels of fiber and protein and lower levels of starch than other cereal grains. Sustagrain also allows for a heart-health claim.Another ConAgra grain suitable for formulations seeking a heart-health claim is Ultragrain. Chicago-based Sara Lee has tremendous success with Ultragrain in Soft & Smooth bread — a single slice yields a “Good Source” with 8 g of whole grain, as does Kansas City-based Wonder Bread’s Whole Wheat White bread.

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Is it a problem of storage capacity?

Since 2010, the problem of insufficient foodgrain storage capacity in India has attracted

both political and media attention. Commentators in the media bemoan that India lets grains rot when there are people who go to bed hungry. Similar comments have echoed in Parliament. In September 2010, hearing the right to food public interest petition, the Supreme Court asked the government to distribute to the poor the foodgrains that would otherwise rot. Since then, the mismatch between stocks and capacity has, if anything, worsened. Peak stocks in 2012 went beyond 80 million tonnes (mt). In 2013, the early projections are that stocks will cross 90 mt.It is useful to break up the issue into two questions: how much storage capacity is required for public stocks, and second, what policies will bring capacity in line with grain purchases.How much storage capacity is required?Crop harvests occur at particular points in time (rabi, or spring, in the case of wheat and predominantlykharif, or autumn, in the case of rice) while consumption is continuous through the year. Hence, crops need to be carried from the harvest months to the other months when there is no harvest. This constitutes the demand for seasonal storage. As there is no seasonal pattern in the consumption of either rice or wheat, the demand for seasonal storage (both public and private) can be worked out from the timing of crop harvests and the principle that grain must be allocated equally over time.


To estimate the storage capacity for seasonal public stocks, we suppose that grains are not carried over from one marketing year to another. Of course, total storage also includes stocks that are carried over years. The needs of such annual storage can be separately computed and added to the seasonal storage. So to assume zero storage over crop marketing years is to simply focus on the seasonal storage issue.Thus, in the case of rice, we suppose public stocks are zero on 1 October (the beginning of the kharifmarketing year). Say, the amount of rice procured for subsidised distribution is x. One-fourth

of x is used in the quarter of the calendar year (October-December) and the carry-over is three-fourths of x on 1 January, which is then progressively reduced to half and one-fourth of x in the succeeding quarters. A similar scheme can be worked out for wheat. Storage requirements taper off at the end of the marketing years for rice (September) and for wheat (March) respectively.It can be easily seen that the peak demand for storage occurs on 1 January and this constitutes the storage capacity that must be planned for. With the passage of the Food Security Act, it is expected that grain procurement would go up. The Rangarajan committee estimated a food distribution requirement ranging from 64 mt to 74 mt of grain (Economic Advisory Council, 2011). With a 60-40 split

between rice and wheat, the peak storage demand does not exceed 41 mt even in the high requirement scenario of 74 mt. To this figure, we can add the emergency and strategic reserves of 5 mt that the government wishes to keep. The total peak storage would therefore be around 46 mt. Gap between required and existing storage capacityThe Food Corporation of India (FCI)—the Central government agency responsible for procurement and storage of grain for the public distribution system (PDS)—has a storage capacity of 32 mt, of which about half is hired. Hence, assuming that the FCI has hired all the capacity that

is possible, then the gap between FCI’s existing capacity and the required capacity (46 mt) is about 14 mt. Incidentally, in the 11th Five Year Plan, the FCI identified a gap of 16 mt of capacity that needed to be created.But the government buys far in excess of what it distributes. Going by the recent experience of peak stocks exceeding 80 mt, additional capacity required is nearly 50 mt. So why are our calculations off the mark? That’s because our computation are based on government’s commitments to the PDS. However, what the government buys from farmers (procurement) does not match the PDS requirements. This can be seen from Figure 1, which plots the annual figures for procurement and PDS sales. Since the early 1990s, procurement has consistently exceeded PDS sales. This

is why there have been recurrent crises of excess stocks and consequently, of storage capacity. An earlier manifestation was in the early 2000s. In August 2001, the government stashed away 65 mt in warehouses, school buildings or simply under tarpaulins in open fields.From the figure, it is clear that the difference between procurement and distribution is too large to be explained by the need for emergency reserves. Nor can excess procurement be explained by an intent to stabilise consumption and prices. If that was the case, distribution ought to exceed procurement in years of low availability. Stabilization re-orders supplies over time but does not alter the total supplies over a long enough period of time. One implication is that the averaged difference between procurement and subsidised distribution ought to be zero. Indeed, this is what obtained in the period prior to 1989-1990 (Ramaswami, 2002). This has clearly not happened in the last two decades.The pressure to hoardThe explanation lies in the procurement process and the fixation of the procurement price. While the politics around the procurement price is a proximate reason, an even more fundamental reason is the unwillingness to tolerate even small possibilities of under-supply to the PDS. At the higher levels of the government, there is immense paranoia about food shortages affecting the PDS. Politicians and bureaucrats perceive the costs of insufficient supplies but nobody is held accountable for excessive stocks and high prices.Predictably, the errors are in one direction. High procurement prices and large government stocks displace private trade and, therefore, bumper procurement and stocks continue until the momentum is broken by an exceptional event such as a drought or by ad-hoc dumping of grain in the domestic (open market sales) or international market (exports).India does not have an announced protocol for stock depletion by way of sales to the domestic or to the international market because of the bureaucratic and political caution that lead to excessive stocks in the first place. In addition, high procurement prices typically mean that stocks have to be sold at a loss. As this would show up immediately as an

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increase in food subsidy, the finance ministry is typically unenthusiastic. Even when the government ultimately sees reason, the financial implications mean that the chain of decision-making is long and subject to frequent review. Speedy response to excess stocks is not part of the government DNA.The implication is that as long as the key structure of the procurement system is unreformed, there will always be a tendency to accumulate excess stocks. Indeed, it is likely, that an expanded PDS (consistent with the National Food Security Bill) will reinforce this tendency. With a Food Security Act, the government has an explicit legal obligation to meet the requirements of the PDS. A failure, here, would not only be politically costly but could also result in legal sanctions for the officials concerned. For this reason, a food security act will amplify the tendency to play it safe.Reforming the procurement process: Closed-ended procurementOne way out is to have a systematic policy of open market sales. Economist Kaushik Basu proposed a mechanism of

selling grain in small batches to many traders and consumers to maximise the impact of open market sales on prices (Basu, 2011). His proposal was made in the context of market stabilising interventions wherein procurement varies according to available supplies. But as we have seen, the foodgrain intervention has been systematically biased towards excess procurement. Hence, the socially beneficial, first best policy here would be to reduce procurement rather than to have open market sales.The ideal reform would be to move procurement from being open-ended to being closed-ended so that it meshes better with the PDS. Currently, the procurement system is open-ended in the sense that the government is committed to buy whatever farmers wish to sell. A closed-ended procurement process would be one where the government buys only that much grain as to meet its distribution requirement.Such reform of the procurement process will be hard. States that gain from open-ended procurement will oppose such a move. While a closed-ended procurement

process would meet political difficulties, incremental reform may be possible. First, if the expanded obligations under the Food Security Act are met by a mix of transfers in-kind and in cash, it will restrain the pressures on procurement. Of course, the problem vanishes in a world where cash transfers completely replace the transfers in-kind.Second, it is important to unbundle the procurement for PDS from the procurement for buffer stocks. This can be done by creating a new agency called, say, the Risk Management Agency (RMA). The FCI’s liability will remain limited to the grain purchased for distribution requirements. The stocks in excess of this requirement should be transferred to the books of the RMA. Such an arrangement will make excess stocks visible in financial accounts and therefore garner attention from economic and political observers. This might, therefore, force the government to take excess stocks into account when deciding procurement prices.

Source: www.ideasforindia.in

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Poetic Speech on Doubling Indian Agriculture

By Sh. Nadir Godrej, Chairman, Godrej Agrovet Ltd.,

While agriculture plods alongThe other sectors have been strong.

Our service sector is the star.And industry has come quite far

Although right now it’s been laid lowThanks to a crippling double blow.

Recurrent scandals stemmed the flowOf coal and gas and iron ore,

Preventing us from making more.As if that was not quite enough

The RBI chose to get toughWith interest rates that are sky high

And make investors very shy.On this subject I’ve much to say

But I’ll wait for another day,Since agriculture is our theme.At current rates it would seem

That twenty years is what we needFor one doubling to succeedBut our leader, Rajju Shroff,

To whom, my hat I now do doff,Wants to do it in a mere five.

An impossible dream to make us strive?Or something that, if we believe,

We could go out and achieve?Now at first glance it would seem

That it is an impossible dream.Our farmers haven’t seen the light

And land and water are finite.Excuses one will always find

But true success lies in the mind.If we want to do a lot

We must cut the Gordian knot!They say that land is no more made,

(Except in Holland and Cuffe Parade).Nor can we count on very much.

For agriculture the situation’s suchThat land is lost to other trades

For factories, townships, escapades.This is a problem, all the same,

We can still play the high yield game.Much more can grow in every field

If only we improve the yield.It’s done abroad, it’s tested here

And yet somehow we always fearIt won’t be done in the field

And still we see that the yieldOf hybrid corn is rising fast

Ten tons per hectare’s been surpassed.Though corn is priced less than wheat

On value yield it can now beatAll other cereals by a lot

Much growth therefore can be gotQuite simply by changing crop.

That’s one more way that we can stopThe paradigm of measly growth.

Now strangely India has been loathTo certify all GM food.

I don’t know how this should be viewed.Of course we should avoid grave risk

But every process should be brisk.If others see a benefit,

We should also do our bit.Bath water should be thrown away

But we should let the baby stay.GM’s a tool that we should wieldFor further increase of our yield.

And inputs also play a roleHigher usage helps the goal.

But India lags far behind.In China though one does find

The usage is twenty foldAnd what if we could be that bold?

Our yield would go even higherBut to be a real high flyer

We also need to multi cropThirty percent is just a drop.

Why with three crops on all our landOur goal for growth would be in hand.

But water would then be required.

Sh. Nadir Godrej delivering his speech at the Conference...

Vigyan Bhawan in the Presence of Hon’ble President

of India in the Inauguration Session on 1/2/2013

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The supply’s much less than is desired.But for recycling there’s great scopeAnd that is what gives us some hope.But right now no one seems to care

And if it’s free that’s only fair.We’d solve the problem in a trice

If only we’d give it a price.Much of the rainfall we could store.

Heavy users wouldn’t use more.Sugarcane would moderateAnd farmers would operate

With sprinklers and drip irrigationAnd soon we’d find that in our nation

Demand and supply quickly matchAnd we’ll cultivate every patch

Not just once or even twiceBut while we’re at it, why not thrice?For those who think that water’s free

And so refuse to pay a feeWe could allow a tiny quota

A kindly gesture for the voter!So far I’ve talked of crops in fields

And shown how to improve the yields.But of the Agri GDP

One third’s animal husbandry.The dairy growth is very steady

But poultry’s growth is truly heady.One thing we should understand

Fast dairy growth requires more land

If we multi-crop the fieldAnd improve the fodder yield

Our dairy sector would then growAnd milk will surely overflow.Now poultry is the way to go.

There are two products as we knowThere is the egg and then there’s meat.

The egg is an amazing thingAnd I for one could always singIts praises, for it’s packaged well

With its own protective shell.And in it you will surely findFine nutrients of every kind.

It can be cooked in many waysPrepared in minutes, not hours or days.And I don’t want to sound contrarian

But sterile eggs are vegetarian.Not just an ordinary view but rather,

The considered view of our nation’s father.For both eggs and meat you should know

That poultry feed conversion’s low.Unlike cows they don’t eat grass

But in a sense they also pass.Soya meal and corn are fed

And though perhaps it could be saidThat these are foods that we might eat

No one would treat them as a treat.And can we make the case much better

Not just in spirit but in letter

Make a feed that won’t competeWith any food, that humans eat.

Can we fulfill such a dream?With newer enzymes it would seemThe digestibility could be bettered

Locked nutrients could be unfettered.And what would be your reactions

To feed made from low cost extractions?I’m sure you’d all be delightedA golden era has been sighted

With rapid poultry growth in storeAnd the ability to feed many more

Without the use of added landCan help us meet the food demand.

The government can play roleAnd help us all achieve the goal.

Land ceilings could be slowly easedLarge tracts of land could then be leased,

A water pricing policy,Encouragement of R&DAnd relaxing the APMC.

A duty on edible oilWill help grow more on our own soil.

Indeed, a lot needs to be done.But when we all work as oneObstacles can be surmounted.Our successes will be counted.

Our agriculture will go farThis sector will become the star.

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The perils of ignoring lubrication in the food industryIf a food manufacturer was to ask me what the greatest risk that lubricants could have on my business, my answer would be the potential for food and beverage to reach the market place containing undetected non-food-grade lubricant. While there are other negative impacts lubricant can pose on a food manufacturer this is clearly the most substantial and potentially damaging.

What role do lubricants play?Every food plant requires lubrication. Various greases and oils lubricate processing equipment, allowing moving parts to function as designed and hopefully ensuring

thousands of hours of trouble-free operation. However, unique to food manufacturer and other clean industries are the potentially damaging consequences from lubricants inadvertently finding their way into food and

beverages which reach the marketplace and an unsuspecting consumer.Costly consequencesNow, in all fairness, lubricant-related food recalls are quite rare and I suggest


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there are very few in the food industry who could remember the last time a food manufacturer fell victim to a non-food-grade lubricant contamination or recalled their product from the marketplace. However, it has happened and to some of the largest food and beverage companies on the planet. Below are some documented case histories where the unforeseeable has occurred.

Sliced turkey meat: A US firm recalled 36,000 kg of sliced turkey inadvertently exposed to a non-food-grade lubricant during processing. The problem was discovered by the consumer complaint analysis of complaints and a follow-up investigation where consumers complained of off-colour, off-odour turkey while some consumers reported intestinal discomfort.Source: www.fsis.usda.gov/OA/recalls/rnrfiles/rnr038-

Smoked boneless hams:A US firm recalled 222,658 kg of smoked ham after some were contaminated with gear lubricants. Several customers reported a “bad taste” and “burning” in the throat for up to three hours after eating the ham.Source: www.fsis.usda.gov/OA/recalls/rnrfiles/rnr008-

Cans of baby food:A mother in the UK alerted the environmental officer, claiming that a tin of baby food “smelled of tar”. Upon further investigation it was found that the tin contained mineral-oil lubricant possibly from a machine during the manufacturing process or the can-manufacturing process.Source: The Sentinel, 1 September 2000.

Now I can only speculate as to how non-food-grade lubricants came to be used in areas that would appear to be critical control points where food-grade lubricants should have been used. Did these companies have any policy on lubrication usage, had a risk assessment been conducted, or was it simply human error. I guess we may never know?An interesting point I like to consider is: would the alarm have been raised by the

consumer if food-grade lubricants had been used, even though our undeniable objective is to ensure that no lubricants come in contact with our food product?

How often could this happen?Recalls caused by lubricant contamination are quite rare; however I have strong reason to believe that minor instances of contamination go on unnoticed where food manufacturers have not undertaken due diligence and identified their lubricant hazards. Simply put: how do you detect the risk if you don’t identify the hazard? Is my business at risk?Depending on the type of manufacturing process, some companies are more exposed to the potential of lubricants contamination than others. Ask yourself the question: has our business adequately identified the locations within our plant where food contact can occur and, if so, can we detect an incident where lubricant comes into contact with food before it reaches the market place? If the answer is ‘no’ then your business may have some risk, however minor, of an undetected lubricant contamination.

Key indicatorsFrom personal experience, I have found the companies I would most consider at risk from lubricant contamination often display several defining characteristics. These characteristics are my key indicators which I use when visiting food manufacturers to determine the risk that lubricants may pose to their business and the required solutions to address these risks.• Policy - The absence of a company

policy for lubrication - determining the type of lubricants accepted for site use.

• Hazard analysis - The absence of a documented lubricant hazard analysis within the food safety program.

• Documentation - A food manufacturer’s inability to provide sufficient documentation to determine where lubricants are required for use.

• Management - Difficulty managing lubricant usage and the introduction of non-approved lubricants.

• Housekeeping - Poor lubricants storage and handling practices, suggesting that lubricant contamination, misapplication and operator confusion is a possible occurrence.

Now I don’t suggest that food manufacturers who have not addressed my key indicators are unknowingly contaminating their product, however, they may be considerably more exposed to the risks of lubrication contamination if they haven’t.The underlying message is that some of the largest companies on the planet have been the victim of an undetected non-food-grade lubricant contamination reaching the consumer. Dedicate time to your companies’ lubrication requirements, ensuring the hazards are identified and monitored before the undetectable happens.

What can you do?Develop a comprehensive report containing your plant‘s total lubrication requirements with particular focus on the obvious lubricant applications which are above or adjacent to food production where spills, leaks or human error may result in food contact. This information will determine your policy which is, basically: will I use only food-grade lubricants or a combination of food-grade and non-food grade?Technological advances of food grade lubricants is such that they can be used in almost every application without compromising machine life or production so total food-grade implementation within food processing areas should seriously be considered.Your report will also determine a finite number of lubricants required for your plant to operate efficiently which, in addition, will allow you to develop the most appropriate lubricants’ storage facilities to effectively manage the use and transportation of lubricants within your processing facilities.Document and communicate your lubricants policy ensuring all staff are aware of safe manufacturing procedures.*Aaron Crichton is Managing Director at Superior Lubricants Pty Ltd (www.superiorlubricants.com.au).


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44 Oil & Food Journal Vol. 08, Issue 06, April 201344 Oil & Food Journal Vol. 08, Issue 06, April 2013

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Milk, snacks, poultry to drive packaged food industry growth

to 9% a year in 15 years’

The packaged food segment is likely to grow 9 per cent annually to become a Rs 6 lakh crore

industry by 2030, dominated by milk, sweet and savoury snacks and processed poultry, among other products, says a new report.The CII-McKinsey report on “India

as an agriculture and high value food powerhouse by 2030” says the emphasis on branding could further enhance realisations of packaged foods by up to 30 per cent, besides driving the growth of the country’s processed food sector.Packaged milk, as a category, is projected to grow from $7.76 billion to $32.9 billion by 2030, registering an annual growth of 8 per cent. About 73 per cent of the milk sold by 2030 would be branded, against 31 per cent at present. Sweets and savoury snacks will be second largest category at an estimated $16.39 billion by 2030 from $1.28 billion in 2010, clocking a 13 per cent growth annually.Processed poultry products will clock the fastest growth of 17 per cent per a year to $8.34 billion by 2030, against $398 million in 2010. Similarly, biscuits will see an 8 per cent growth to touch $13.14 billion in 2030, followed by fruit beverages at $12.20 billion and vegetable and edible oils at $10.33

billion. Packaged atta (wheat flour) is expected to grow 13 per cent to $8.15 billion from $574 million in 2010.

BRANDING“Branding could drive the next growth wave in the country’s food processing sector,” said Adil Zainulbhai, Chairman,

McKinsey & Company in India. The food p r o c e s s i n g sector is plagued by issues such as lack of a p p r o p r i a t e infrastructure, safety standards and integrated policy and vision among others, he added.

“Scaling up the front-end retail will drive investments in infrastructure and there comes the branding opportunity,” Zainulbhai said. Branding as a concept can be extended to fresh food as well, he said, citing the example of Mahagrapes – a branding initiative undertaken by the Maharashtra Government in collaboration with the grape growers co-operative in the State.Indians are now spending more on high-value foods and consumption was shifting from plant-based to animal-

based protein, thanks to the rising disposable incomes. “We are in the early phase of this shift and the demand for high-value produce – including fruits and vegetables – is expected to go up significantly over the next 20 years,” he said.The report – which has studied the potential for five crops – soyabean, mango, banana, potato and poultry in States such as Tamil Nadu, Gujarat, Maharashtra, Bihar and Punjab, suggested 12 interventions that could transform and accelerate growth in the country’s food and agriculture sector to support consumption demand changes over the next 20 years.AGRI TECH MISSIONThese include creation of a National Agricultural Technology Mission, a National Farm Gate to Market Infrastructure Authority, on the lines of National Highways Authority of India, for developing pan-India agri-infrastructure to attract private investments in cold chain and storage among others.“Driven by the changing consumption pattern, the future of agriculture and food sectors will lie in crop diversification to high-value crops and higher value addition. Revisiting some of the current legislations and taking focussed policy initiatives could make India a food hub in Asia,” said Rakesh Bharti Mittal, Chairman, CII National Council on Agriculture.


New research from Harvard University helps to explain how waterborne bacteria can colonise

rough surfaces - even those that have been designed to resist water.A team of materials scientists and microbiologists studied the gut bacterium Escherichia coli, which has many flagella that stick out in all directions. The researchers found that these tails can act as biological grappling hooks, reaching far into nanoscale crevices and latching the bacteria in place.The scourge of the health care industry, bacteria like E. coli are adept at clinging to the materials used in medical implants like pacemakers, prosthetics, stents and catheters, spreading slimy biofilm and causing dangerous infections. The findings, published in the Proceedings of the National Academy of Sciences (PNAS), suggest that antibacterial materials should incorporate both structural and chemical deterrents to bacterial attachment.E. coli are equipped with two types of appendages: pili, which are short, sticky hairs, and the whip-like flagella, which are often twice as long as the bacterium itself. Pili had previously been recognised as playing a critical role in the formation of biofilms. These short hairs, up to only a micron in length in E. coli, can stick to surfaces temporarily, while the bacteria secrete a thick slime that holds them permanently in place.Flagella, on the other hand, typically play a propulsive role, helping bacteria to swim and steer in liquid environments. As it turns out, though, when it’s time to settle in one place, flagella also contribute to adhesion on rough surfaces, where the pili would have access to fewer attachment

Why E. coli like it rough

points.Nanoscale crevices, such as those deliberately built into superhydrophobic materials, often trap air bubbles at the surface, which initially prevent E. coli from attaching at all. The new research shows that the bacteria can gradually force these bubbles to disperse by, essentially, flailing their arms. Once the cracks and crevices are wet, although the cell bodies can’t fit into the gaps, the flagella can reach deep into these areas and attach to a vast amount of new surface area.“The diversity of strategies and methods by which bacteria can adhere reflects their need to survive in a huge variety of environments,” says lead author Ronn S Friedlander, a doctoral student in the Harvard-MIT Division of Health Sciences and Technology. “Of course, if we could prevent biofilms from forming where we didn’t want them to, there would be immense benefits in medicine.”Friedlander studies in the lab of Harvard professor Joanna Aizenberg, who holds a joint appointment as Amy Smith Berylson Professor of Materials Science at the Harvard School of Engineering and Applied Sciences and as Professor of Chemistry and Chemical Biology (CCB). Aizenberg’s laboratory group has been working to develop extremely slippery surfaces that repel water, dirt, oil and bacteria.The surface chemistry of antibacterial materials appears to be just as important as the topography. E. coli flagella have previously been known to adhere to certain proteins on the surface of cells in the gut wall, indicating that the bacteria are capable of bonding with specific molecular matches. But in the 1970s, biologists observing E. coli on microscope slides

had also seen something curious: bacteria wheeling about under the coverslip, as if tethered to the glass by a single flagellum. This ability to stick to any surface at all - termed nonspecific adhesion - is part of what makes it easy for bacteria to survive on the surface of medical implants.Rather than having to find a perfect molecular match, the flagella of E. coli appear to cling to surfaces using a combination of many weak bonds.“The ideal antibacterial material would be topographically patterned with tiny crevices to limit the amount of surface area that was immediately accessible to bacteria via their pili, but also engineered in terms of its surface chemistry to reduce the ability of the flagella to make bonds within those crevices,” says Aizenberg. “Surface structuring alone will not achieve this goal.”In 2012, Aizenberg’s group demonstrated a material they call SLIPS (for slippery, liquid-infused porous surfaces). It was patterned with nanoscale pores, which were filled with a fluorinated lubricant that was shown to prevent biofilms from attaching.The findings from this line of research are relevant beyond the field of medicine, as biofilms also pose problems for the food industry, water treatment, ship maintenance and other industries where slime can clog pipes and filters, corrode metal or cause contamination. But this latest work also helps to explain, on a basic level, how bacteria succeed at colonising such a wide variety of environments, including the human gut. Having many flagella, the authors note in their paper, “may be particularly important in an intestinal environment coated with microvilli”.

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Dairy Farm Association Launched

An Association of Dairy farms launched at Hyderabad on 23rd March. Dairy farm segment is one of the largest

farming sectors after agriculture commodities. Andhra Pradesh is third largest dairy farming hub in the country. Indian has thousands of dairy farms big and small anging from 5 animals to 1000+ animals. But profitability comes only when a farmer is connected with a cooperative or cluster for regular supply and income. The association is led by Sultan Bin Masqati Managing Partner of Masqati Dairy from Hyderabad. Masqati is the largest dairy product company in Hyderabad and one the leading dairy products company in India. Sultan has been advocating for promotion of organized cluster formation in the country, he is the one who initiated this culture in Andhra Pradesh and in one cluster he has enrolled hundreds of farmers within a radius of 20 Km. This has not only assured good income for farmers but also changed the economy of small dairies in the area. Now Sultan Masqati is looking for this experiment in the entire Andhra. This is the major reason behind launching this Association, Masqati informed. Sultan Masqati also informed that they have not yet appointed office bearers of the association yet. At present they are looking for more and more farmers joining this association. In the launching program of the association, they invited Dr Chandrakiran Sant one of the most known faces of the dairy farming community a veterinarian by Degree and an Advisor to every successful dairy farm in the country.Dr Sant informed the gathering that shortage of milk in India would continue for a long time because the product of milk is growing by 4 per cent and demand is growing with 7 per cent. The gap between demand and supply will provide unprecedented opportunities to the dairy farmers and processors. Firoz H Naqvi Secretary of AFTPAI and one of the founder members of the association informed that membership drive of the association is started and already there are 200 plus members joined it. All the big and small dairy farm owners, chilling centers, processors of milk and milk product companies can join the association.


Pulses market insightIndia is the largest producer and consumer of pulses in the world

By Basma Husain

INTRODUCTION India is the world’s largest producer of pulse crops in the world. Representing 25% share in global production, 27% of consumption, 34% of food use, and more than 11% of the total imports. Production seasons in India are Kharif (autumn) and Rabi (spring). The Kharif season is the period between June and September, which represent one third of the crop including Chickpeas, Lentils and Dry Peas. However, two thirds of India’s production is in the Rabi which is between October and March. The crops that grow in the Rabi period are Pigeon Peas, Black Matpe, Mung Beans and Moth Beans. Pulses are an important source of protein in the Indian diet. However, different pulses cater to many tastes in different regions throughout India. For more information please refer to Table 3. The state of Madhya Pradesh is the largest pulse producer accounting for about 26% of total production. Other states with significant productions are Uttar Pradesh (18%), Maharashtra (14%), Rajasthan (14%), Karnataka (5%), Andhra Pradesh (10%), and Bihar (5%).3. India’s main crops are Chickpea, Pigeon Pea, Mung Beans, Urad Beans, Lentils, and Field Peas.

PRODUCTIVITY STALEThe productivity of pulses has been very low in India, with 45 per cent cumulative growth between FY 1951–2010, compared to the productivities of wheat and rice, which have grown manifold, at

India produces a quarter of the world’s pulses, accounting for one third of the total acreage under pulses. Indians consume 30 per cent of the world’s pulses, but domestic production of pulses has not kept pace with population growth. Pulses production has grown at only a 1 per cent CAGR from 1951–2010 compared to a population growth of about 2 per cent during the same period.

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320 and 230 per cent, respectively, during the same period. Also, the area under pulses has grown at 25 per cent during this period, a much lower rate than that for other food grains.Chickpeas (chana), pigeon peas (arhar / tur dal), urad beans (urad dal), Mung beans (Mung) and red lentils (Masoor) are the top five pulses grown in India and account for over 80 per cent of the total pulses production in the country. Over 60 per cent of pulses produced in India are grown during the rabi season.

DEPENDENCE ON IMPORTSImports of pulses in India have been increasing and currently account for about 15–20 per cent of total domestic availability. With low production and an essential source of protein, India has permitted unrestricted imports of pulses, which makes it the only food item that is granted such open access. The Indian market is very price sensitive and the products that trades the most are graded “Fair to average quality” (FAQ). According to USDA, Peas represents the largest share of imports then Kabuli Chickpeas, Pigeon Peas, Lentils, and Chickpeas respectively. Chickpeas, Pigeon Peas, Mung Beans, Black Matpe, and Kidney Beans are mostly imported from Burma (Myanmar). This is due to the different varieties in quality and price that the Burmese companies could offer, in addition to a lower freight cost and faster delivery due to proximity. India mostly imports their Dry Peas and Kabuli Chickpeas from Canada and Australia. They import green and yellow Peas from Canada and they import Chickpeas and low priced dun Peas from Australia. These are mainly marketed in the eastern territories of India primarily Kolkata.Canada and Myanmar are the major exporters to India. India imports white peas, green peas (dried) from Canada and the US, while Myanmar supplies several pulse varieties similar to India’s own domestic produce, mostly urad beans, Mung beans and pigeon peas. India also imports dried peas and chickpeas from Australia, chickpeas from Tanzania, dry peas from France and red kidney beans from China. A split of the various pulse types imported shows that India imports a large quantity of dry peas, which

contributes to almost 70 per cent of India’s supply.

SUBSIDY ON PULSESThe supply-demand gap of about 3 million tonnes of pulses — on account of India’s production of 17 million tonnes, against consumption of 20 million tonnes per annum — is showing signs of widening. The Ministries of Agriculture, and Consumer Affairs, Food and Public Distribution fear that escalating domestic prices of pulses can prompt higher food inflation due to lower output of Kharif (summer) pulses. Hence, traditional i n t e r v e n t i o n i s t measures were contemplated in early October, which, unfortunately, may again prove to be counter-productive. They may not help in providing relief to poor consumers. After terminating its scheme of import subsidy of pulses for PDS, operational between August 2008 and June 2012, the Government has revived its blueprint for import of one million tonnes of pulses to be distributed in 2012-13 by State governments through PDS channels. Under the new dispensation, subsidy on imports has been enhanced from Rs 10/kg to Rs 20/kg or from Rs 10,000/tonne to Rs 20,000/tonne, equivalent to $192.50 to $385/tonne, respectively. This announcement stands discounted in the future and spot exchanges. Prices have not softened. The major demand for PDS imports, in the past, has come from Andhra Pradesh, Maharashtra, Tamil Nadu, Kerala, Rajasthan, Punjab, Himachal Pradesh, Chhattisgarh, Madhya Pradesh and Uttar Pradesh. The new scheme is so tempting

that many other States may jump in.

ARBITRAGE POSSIBILITIES From the market’s point of view, a subsidy of $385/tonne is a negative customs duty on Government-sponsored imports to depress sales prices under PDS. Nevertheless, the fundamentals of elementary physics are equally applicable to markets — the more a coiled spring is compressed, the more it rebounds with greater reaction and disruptive force. Likewise, an intensive intervention will disable private imports. It will create significant market distortion, due to a huge arbitrage of 77-1200 per cent between the market and PDS prices. For example, chana’s market price of Rs 45/kg will have a PDS price of Rs 22/kg; likewise tur’s market price of Rs 43/kg will be countered by Rs 20/kg in PDS; yellow peas traded at Rs 24/kg in the market could be available at Rs 1.85 in PDS. Arbitrage opportunities of 3-5

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per cent are enough for diversion of funds and commodities, while 77-1,200 per cent spreads between PDS and market will destabilize the market equilibrium. Though the terms of implementation of the revived subsidy schemes are yet to be officially spelt out, indications are that import might be routed through PSUs of the Department of Commerce and NAFED/NCCF under the supervisory guidance of Departments of Consumer Affairs for onward distribution by State governments.

SCOPE FOR DIVERSION Some of the apparent ambiguities are as follows; One million tonnes of pulses cannot be sourced from international market due to paucity of surplus supplies, unless yellow peas are also included in PDS. So far, yellow peas (imported from Canada, France, Ukraine, Russia) had an “insignificant” share in PDS imports, while the States were keener to import items such as chana, tur, urad, Mung, etc, ( from Myanmar, Tanzania, Malawi, Australia etc.) The tender-centric approach of PSUs results in an abnormal spike in international prices, even if import is limited to 0.2-0.3. Million tonnes, while some contracts remain unexecuted due to sellers defaulting on the prospects

of getting higher prices elsewhere. The subsidy, after three or four months, will be substantially neutralised. It invisibly benefits foreign sellers.

Private trade will be at continuous odds with lower local and higher CIF values. Import through established trade will be minimal; supply-demand mismatch will expand and “pulse inflation” will come into effect in local markets. Unscrupulous elements will ensure continuous leakages of low priced pulses from PDS stocks and thrive by trading in the open market. Higher imports of yellow peas can be anticipated if importing agencies are compelled to meet their import allocations through substitution of chana (chickpeas). Availability of peas at a low cost of about Rs 2 /kg will be highly rewarding by diversion in the open market which is now trading at Rs 24/kg. This item does not need any processing by dal mills, unless traded in split form. As usual, the beneficiaries will be other than those intended. The entire system both at the Centre and the State will be decidedly prone to unethical practices. Even if we go by the experience of import of fertilizers and crude oil, which are also subjected to negative customs duty, their prices have been rising in the domestic market and have spurred economic mismanagement. Now, pulses also appear to be included in the same category. The Department of Consumer Affairs, from April 2007 to March, has

implemented similar schemes with 15 per cent discount for the open market and Rs 10/kg discount for PDS. Prices could not be reined in because the macro aspects have remained unsettled. The current interventionist role of the Government by way of encouraging negative customs duty disturbs the equilibrium in the market. Cash transfers are the real option, for which PMO is expediting the mechanism.

PULSES EXPORTBy Volumes, Pulses exports from India were recorded to be approximately 205,690 ton in 2011. It grew at a CAGR of -4.8% between 2007 and 2011. In 2009, the Pulses exports were 136,270 ton, and in 2010, exports were 99,910 ton. Between 2009 and 2011, Pulses exports from India grew at a rate of 22.9% between 2009 and 2011. The Pulses exports growth between 2009 and 2011 was higher than growth between the period 2007 and 2011. Pulses exports in from India in 2007 stood at 250,700 ton.By Value, Pulses exports from India were recorded to be approximately Rs. 853 crore in 2011. It grew at a CAGR of 2.5% between 2007 and 2011. In 2009, the Pulses exports were Rs.540 crore, and in 2010, exports were Rs.407 crore. Between 2009 and 2011, Pulses exports from India grew at a rate of 25.6% between 2009 and 2011. The Pulses exports growth between 2009 and 2011 was higher than growth between the period 2007 and 2011. Pulses exports in from India in 2007 stood at Rs.773 crore.

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Researchers have discovered the secret of potato chips - why it is that once you pop, you can’t

stop - and have even come up with a complicated-sounding name for the phenomenon: hedonic hyperphagia.“That’s the scientific term for ‘eating to excess for pleasure, rather than hunger’,” said Tobias Hoch, who conducted a study into the condition.“It’s recreational overeating that may occur in almost everyone at some time in life. And the chronic form is a key factor in the epidemic of overweight and obesity that here in the United States threatens health problems for two out of every three people.”Hoch presented his findings at the 245th National Meeting & Exposition of the American Chemical Society, the world’s largest scientific society.Hoch’s team at FAU Erlangen-Nuremberg, in Erlangen, Germany, explored the condition in a study in which one group of laboratory rats was fed potato chips. Another group was fed, as Hoch puts it, “bland old rat chow”. The researchers then used MRI devices to analyse the rats’ brains, comparing differences in activity between the ‘rats-on-chips’ and ‘rats-on-chow’.The rat chow contained the same ratio of fat and carbohydrates as the potato chips, but the rats’ brains reacted much more positively to the chips.“The effect of potato chips on brain activity, as well as feeding behaviour, can only partially be explained by its fat and carbohydrate content,” explained Hoch. “There must be something else in the chips that makes them so desirable.”

When offered one of three test foods - powdered rat chow, a mixture of fat and carbs, or potato chips - the rats more actively pursued the potato chips. What’s more, the rats were most active after eating the chips. Hoch puts this down to the chips’ high energy content.Mapping the rats’ brains with manganese-enhanced magnetic resonance imaging (MEMRI), the researchers found that the reward and addiction centres in the brain recorded the most activity. But the food intake, sleep, activity and motion areas also were stimulated significantly differently by eating the potato chips.“By contrast, significant differences in the brain activity comparing the standard chow and the fat carbohydrate group only appeared to a minor degree and matched only partly with the significant differences in the brain activities of the standard chow and potato chips group,” Hoch said.If scientists can pinpoint the molecular triggers in snacks that stimulate the reward centre in the brain, Hoch says it may be possible to develop drugs or nutrients that can be added to foods to block this attraction to snacks and sweets. The next project for Hoch’s team is to identify these triggers.Unfortunately, Hoch says these findings are unlikely to work the other way. He says there’s no evidence that ingredients could be added to healthy, but unpopular, foods like Brussels sprouts to affect the rewards centre of the brain so we crave healthy foods.Thermo Fisher Scientific Inc. Uveils Phenylbutazone Testing Method

Why you can’t stop at just one

potato chip The lucrative US mango market may again remain out of reach of Pakistani exporters

again this season as a result of strict irradiation compliance imposed by US Department of Agriculture (USDA) and failure of relevant local public sector organisations in resolving procedural glitches.Since the mango export season is only a few weeks away, exporters are concerned about the loss of the potential market, which some say is the responsibility of the Pakistan Horticulture Development and Export Company (PHDEC) and the Ministry of Agriculture.“Authorities’ disinterest is providing space to India which has access to the US market, to have a firm foothold and make Pakistan’s entry difficult,” said an angry exporter. Chief Executive Officer Harvest Tradings, Ahmad Jawad said he had requested the Ministry of Commerce to prioritise lifting non-tariff barriers for US market access. As the existing protocol of irradiation in the US is too expensive, “what we want is a level playing field and Pakistan government must try to get us the same... approvals that were given to Indian mango exports to the US,” he said.The export target, last year, for mangoes had been set at volumetric 150,000 tons but exports fell short by 23 percent, as the exported quantity of Pakistani mangoes was only 135,000 tons. Similarly, while exporters expected that selling mangos overseas will bring dollars 50 million to the country, the actual revenues were only dollars 39 million - 22 percent less than the original target.

Pakistan Mangoes may miss US Market

again

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Olam International has opened a $60 million almond hulling and processing plant in Carwarp,

Victoria. The 12,000 m2 facility is reportedly the largest of its kind in the Southern Hemisphere.The plant is expected to de-hull and shell 14 tonnes of almonds per hour and employ approximately 19 permanent and 54 casual staff once in full production. It will feature state-of-the-art laser sorter technology to shell and hull the almonds, generating significant efficiencies and ensuring consistent product quality, traceability and food safety.

Thermo Fisher Scientific Inc. recently mobilized its Food Safety Response Center

(FSRC) to develop a method to test for the presence of the veterinary drug phenylbutazone in horsemeat.Phenylbutazone, also known as “bute,” is a potent painkiller banned in any horsemeat intended for human consumption. Although horsemeat is not approved for human consumption in the U.S, it is commonly sold and consumed in many countries worldwide.The new Thermo Fisher method overcomes previous challenges of testing horsemeat by using a simple two-step solid-phase extraction (SPE) cleanup protocol that is significantly faster than the manual liquid-liquid extraction procedures required by other methods. The method has been validated by Thermo Fisher FSRC

Olam opens $60 million almond processing plant

Thermo Fisher Scientific Inc. Uveils Phenylbutazone

Testing Methodfor use in food animals and there are no regulatory limits, such as acceptable daily intake or safe concentration for meat, established by the Food and Drug Administration. Therefore, the presence of any amount of phenylbutazone in food animal tissue will be considered a violation and likely to be unsafe for human consumption.”

scientists according to guidelines set by the EU, AOAC International and the International Union of Pure and Applied Chemistry.In 2007, the USDA Food Safety and Inspection Service stated that “phenylbutazone is considered to be one of the most toxic non-steroidal anti-inflammatory drugs. It is not approved

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The company is minimising its environmental footprint by using modern technology. The warehouse can operate in complete darkness, reducing electricity use for lighting, while a cogeneration plant fuelled by almond hulls is also being explored.“The plant’s total capacity will reach 40,000 MT of almond kernels each year, meeting all of our upstream orchard volumes and positioning us well to meet the rapid growth in demand for almonds in India, China, South-East Asian and Middle Eastern countries,” said Bob Dall’Alba, Olam Australia Executive Director and Country Head.


Technology show drinktec

is also a marketing platform

Marketing professionals, product managers, buyers, advertising agencies, designers and engi-

neering offices – all of them have a say when it comes to packaging. In thebev-erage and liquid food industry, too, the objective is to sell a product and make it appealing to the customers. But what´s the best way to achieve this? One place to look for answers is in the exhibition halls at drinktec 2013, between Sep-tember 16 and 20, 2013. This event is not only about beverages technology, it is also a showcase for solutions in packaging design and container shapes, raw materials and additives, labeling technology, marketing services and ad-vertising. Over and above its function as a technology platform, drinktec is a forum for business, bringing together technology and marketing to produce successful products that sell.Networking in the Innovation Flow LoungeBrand new at drinktec: The Innovation Flow Lounge, located at the West En-trance. This is aplace where marketing experts can come to talk to profession-als from the technology and research side – and vice versa. Organized here, under a different theme each day, are short presentations, informal round-table talks and panel discussions with a presenter – and, of course, there is plenty of time to unwind and chat with fellow professionals at the BeverageWorld Bar after a busy day at the show. Making new contacts, discussing ideas and strategies, meeting up with like-minded people from technology and

marketing – all of this is what you get at the Innovation Flow Lounge.“What happens in Munich is truly unique”Just walking round the twelve exhibi-tion halls and looking at the exhibitors’ presentations is very inspiring, prompt-ing many new ideas and thoughts. Günther Nessel, Managing Director of taste! Food & Beverage ommunica-tion/Offenbach, for example, has many answers to the question of just why drinktec should be of interest to a food agency: “Well, first of all, it´s an op-portunity to get a unique overview of a truly international sector. Ofcourse there are many other trade shows, again and again, and at different intervals, but what happens at drinktec in Munich, on this longer cycle, is truly unique. As a marketing professional with connections to these sectors, this event is a must. Here I can hone my own knowledge and gather inspiration. And a walk round the show reveals lots of packaging ideas I can apply in my own work, whether it be in the form of glass or PET containers, cans, or whatever. Plus of course there are lots of things to learn about what´s happening in label-ing technology, seeing just what can be done and what´s in the pipeline. In the supporting program you can find inter-esting forums with lectures and discus-sions, many featuring leading represen-tatives from the sector, from whom you most certainly can pick up some useful hints and knowledge. Here and there you have the chance to engage in con-versation with marketing colleagues.

It´s always exciting to see just who you meet there, and how easy it is to start talking to them about business.”Packaging design follows trend re-searchWhat is critical in successful marketing today is to identify the diverse needs of the customers and to incorporate the current key trends in the packaging de-sign. A report by the trend and future re-searchers Zukunftsinstitut of Kelkheim, for example, highlights the customer´s desire to engage more closely with the producer. What he or she expects is a real exchange, and to have the feeling that his or her needs are being taken seriously. Future researcher Matthias Horx sees this as being not so much about meeting a short-term need, but about making the customer feel better. The product and its packaging design have therefore to appeal to the senses and the feelings, and be associated with a positive message. Communicating a responsible use of resources is anoth-er growing theme today, including on packaging. Demographic changes also need to be taken into account: an ageing society, for example, calls formore practical packaging with easily readable text. Gaining insight into cur-rent and future trends is essential for the beverages industry and its suppliers, and drinktec 2013 is the ideal place to gear up for that future.drinktec Forum: Packaging and mar-ketingVisitors to drinktec 2013 can find out more about the ideal symbiosis of pack-aging and marketing Thursday, Sep-tember 19, in the drinktec Forum in Hall A2. Here the focus is entirely on packaging and marketing. Jean Schrurs, consultant for packaging themes and customized business concepts in the beverage industry, is chairing a session on innovative ways to open up new markets via packaging diversity. In his lecture, Steve Lannon fromMiller Coors, will be talking about ‘Brewers like packaging – a core busi-ness for innovation.Beers differentiate through packaging’. Following this, the trends and their meaning for beverages packaging will be spotlighted by Dominic Cakebread and Ulrich Eisenblätter from Canadean,

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global market researchers in the bever-age and food industry. Their lecture is entitled: ‘Global market zrends, Devel-opment & drivers in beverage packag-ing’. Another marketing approach will be presented in the same place on Tues-day, September 17, in theshape of the subject of ‘audio brand-ing’. Here the question is how sound concepts can be used to draw consum-ers attention to products and to influ-ence brands.Digital meets packagingQR codes are the latest trend tool in product marketing. Experts believe there is still much potential to exploit here. The rapid rise in the use of smart-phones is making things much easier. But what people find when they make use of the QR code should not just be the standard website of the manufactur-er. It is critical to offer the consumer real added value, for example, in the form of suitable uncomplicated offers with interactivity potential. With today´s consumers looking for a closer dialog, there is tremendous potential here to tap into – and labeling and packaging man-ufacturers can meet this need, as will be shown atdrinktec 2013.It´s all in the mix – ‘multisensorics’Successful packaging concepts – and marketing professionals know this very well – are a blend of wide variety

of components. There are virtually no limits when it comes to creative and so-phisticated decoration. A core function of packaging, however, is to engender in the consumer a desire to buy, through a design that is tuned specifically to the target group and the product. Of course, this is a highly complex undertaking, and one that requires great creativity. A tour round the exhibition halls at drink-tec 2013 will deliver lots of input on how to achieve this. A whole host of ex-hibitors will be demonstrating just what is possible using the latest technolo-gies. An optimum packaging solution should appeal to the consumer through as many of his senses as possible: sight, hearing, smell, taste and touch.Innovative ways to do this include us-ing gold foil to signify luxury, simu-lated water drops as a promise of fresh-ness, and colors which the customer can rub to release the scent.Packaging that takes its cue from the product itself is also very much in vogue – the way it feels is a highly ef-fective communication tool in packag-ing marketing.Social media – what are the customers saying?Companies these days will increasingly need to keep track of discussions on so-cial media about their products. Here the consumers say directly and honestly

just what they are thinking. By analyz-ing these comments, producers can gain valuable insights into how to make im-provements to their products. The next step would then be to actively engage in that communication, by building up a direct dialog with customers. Taking part in drinktec 2013 will be profes-sional suppliers who can help in this area. And, anyone wanting to engage in discussion on this and other subjects ahead of the show, can do just that on the Facebook page of drinktec.Packaging, and lots more…Packaging and labeling are not the only areas in which visitors to drinktec 2013 will be able to find optimum solutions and exciting new ideas. An absolute ‘must’ for marketing experts is also Hall B1, an 11,000 m² showcase of raw materials, agents and additives. The highlight here is the ‘Special Area New Beverage Concepts’, in which new sweetening, coloring and aroma strat-egies are presented and explained by the corresponding manufacturers. Halls A1 (restaurant and catering equipment and advertising tools of all kinds) and A2 (packaging technology, ‘World of Labels’) will also be of great interest to trade visitors from the areas of market-ing and communication.

Hindustan Coca-Cola Beverages Pvt Ltd (HCCBPL), a bottling partner of Coca-Cola Company

in India, will invest Rs 600 crore to set up a facility that will make carbonated beverages, juice and fruits-based drinks here.The company will invest Rs 600 crore in two phases on the project which will come up in 60 acres of land in Vikasnagar tehsil of Dehradun, Uttarakhand government said in a press note. An agreement regarding this was signed between company officials and State Infrastructure and Industrial Development Corporation of Uttarakhand Ltd (SIDCUL) in the presence of Uttrakhand

Hindustan Coca-Cola to invest Rs 600 crore for plant in Uttarakhand

Chief Minister Vijay Bahuguna.HCCBPL is the largest bottling partner of the Coca-Cola Company in India and responsible for the manufacture, package, sale and distribution of beverages under the trademarks of Coca-Cola Company, according to information on its website.HCCBPL Executive Director Shukla Wassan and SIDCUL Managing Director Rakesh Verma signed the agreement.The proposed unit would manufacture non alcoholic carbonated beverages, juice, fruits based drinks, it said.It said the Uttrakhand government would provide 60 acres of land to the company at the rate of Rs 95 lakh per acre.The project is expected to provide direct

and indirect employment to around 1,000 people, it added.Speaking on the occasion, Bahuguna said such an investment in the state would give a positive signal to other investors.Further, the press note said HCCBPL Senior Vice President Patrick George has deposited a cheque of Rs 1.60 crore to the state government as earnest money and processing charge.Expressing gratitude to the government, he said special preference would be given to local people for employment in the project.Beverages major Coca Cola Company has posted 8 per cent sales growth in volume terms in India for the first quarter ended March 29, 2013.The US-based company, which announced its global earnings for the first quarter, had said brand Coca Cola grew by 30 per cent in India during the first quarter.

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Projecting high value agriculture and processed food as the catalysts for the next wave of growth in the

farm sector, McKinsey and CII in their latest report have pushed for a shift to “mission mode” from the current outlay of ministerial programmes and schemes.The report recommended setting up of an Agri Renewal Mission that will create an enabling environment for greater private and public partnerships.They want four to five world class food and agricultural universities and research laboratories to be set up by the government. For an integrated approach the government should establish a national agriculture technology mission, a national agricultural sustainability mission, a national agriculture and food export mission, a national farm gate to market infrastructure authority, mega demand servicing and export hubs and private participation in agriculture extension services. There should be agri-business focused venture capital funds as public-private partnership initiative between the Central and State governments and private capital providers “to lead the next wave of growth.”‘Enhance farmer-industry partnership’The farmer-industry partnership should be scaled up to encourage emerging models such as Farmers Producer Organisations, Farmers Producer Companies, the report says while adding that food processing growth should be through an emphasis on “branding.” Five key produce — mango, banana, potato, soya bean and poultry — are likely to drive the next wave of growth in the industry. India’s food exports are projected to grow from Rs. 1.4 lakh crore in 2011 to Rs. 7.72 lakh crore by 2030.Jointly releasing the Food and Agriculture Integrated Development Action (FAIDA) report, McKinsey-India chairman Adil Zainulbhai and CII’s Rakesh Bharati Mittal said India could become a “food hub in Asia,” but for this the government

High Value And Processed Food Will Drive Next Wave of

Farm Growth: Reportwill have to change its policies and farmers will have to change their habitual farming methods.Legislation on stock limitsThey suggested that the government should revisit some of its current legislation related to stock limits, differential taxation across States and of course facilitate direct purchase by the private sector from farmers.When reminded about Food Minister K.V. Thomas’ lament that the private players in the foodgrains market normally pay farmers below the minimum support price, Mr. Mittal said if procurement, distribution and marketing of the Public Distribution System were to be handed over to private parties it would become efficient. Although industry has not come forward to construct storage godowns, Mr. Mittal claimed that left to them the industry would take care of the foodgrains for the government.According to the report — which looks like it is laying the road map for the advent of FDI in multibrand retail — Indians are now spending more on high value foods as is evident from the 25 per cent drop in the ratio of cereals and pulses in the overall food budget of average consumer. Consumption is shifting from plant-based proteins such as pulses to animal-based protein such as milk and meat.Between 2000 to 2010, the contribution of cereals and pulses in the overall per capita food expenditure reduced from 40 to 28 per cent, while that of animal-based products, fruits and vegetables rose from 36 per cent to 42 per cent.“Driven by changing consumption pattern, the future of agriculture and food sector will lie in crop diversification to high value crops and higher value addition. Added to that the increase in agriculture sector’s share in the export pie will bring about a compelling business case for private participation,” Mr. Mittal said.

Weigh modules for tank scales with fully digital load cells prevent loss of

material, bad batches and downtime. They compensate for environmental influences, offer predictive maintenance and allow for simple installation. METTLER TOLEDO is will showcase its PinMountTM weigh module, which features truly digital POWERCELL® PDX® load cells, at the POWTECH Fair in April 23 to 25 in Nuremberg, Germany, in Hall 1, boot 413. POWTECH is the premier international trade fair for mechanical processing technologies and instrumentation.The PinMountTM weigh module on display at POWTECH offers true predictive maintenance, simplified and reliable communication and watertight load cells that work even when submerged. The incorporated POWERCELL® PDX® load cells host an on-board microprocessor to monitor internal and external influences that affect weighing accuracy. It compensates for temperature changes, vibrations, hysteresis and non-linearity, providing extraordinarily accurate results.A breach-detection system alerts users if the enclosure is damaged by accidental puncture or tampering. It also alerts users to replace a load cell before moisture causes weighing errors or scale failure, increasing uptime and preventing loss of raw material and bad batches.The load cells connect to each other in a simple network, eliminating junction boxes. Electronic components are protected inside hermetically sealed load-cell enclosures. The load cell, including all cables and connectors, is water-tight, effectively sealing the entire network against moisture according to IP68 standards.

METTLER TOLEDO Exhibits Secure

Tank Scale Performance at

POWTECH

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Danone India launched a series of TVCs for their product range in India. The TVCs will feature bollywood celebrity Karisma Kapoor, who has been signed on as the

new brand ambassador.Danone India has refreshed its marketing approach with “Only Good Gets In” creating a stronger emotional connect with its consumers. This strategy involved going back to the drawing board and reformulation of all the products. With its vast experience and expertise, all Danone products in India are now made with “Only Natural Ingredients” and no artificial colors, flavors or preservatives.Speaking on the release of the new campaign, Jochen Ebert, General Manager, Danone Food & Beverages India Pvt. Ltd. said, “At Danone, our mission is to bring health through food to the largest number of people. With our new mantra “Only Good Gets In”, we’ve relaunched our brands with only natural ingredients. Our new 360° campaign will bring the new message across to our consumers and Karisma Kapoor, being a young mother and a successful working woman embodies the essence of our brand ethos.”With the relaunch of the brand, Danone has refreshed its product line, packaging and the positioning of the brand. This is being supported by a 360° campaign which is designed to cater to all consumer touch points. The marketing campaign will involve ATL initiatives like TVCs, Outdoors, Cinemas and extensive BTL initiatives like sampling across consumer touch points.

Danone India enters the hearts of its consumers

with its new belief “Only Good Gets In”

This is one of the most elaborate campaigns till date in the Dairy Category in India.Karisma Kapoor, as the new brand ambassador of Danone India said, “I’ve known Danone over the years and have been a regular consumer of its product range. It’s exciting to be associated with a brand that emphasizes on health and natural products. And as the brand ambassador of Danone, I’m happy to be promoting products that are natural and refreshing.”Danone in India has presence in 5 major metros, namely Mumbai, Pune, Bangalore, Hyderabad and most recently Delhi NCR. With a new state of the art facility at Rai (Sonepat) Danone has entered the Delhi NCR region as well. Danone plans to consolidate in these markets before expanding into newer markets.Danone’s series of TVCs were produced and directed by Shantanu Bagchi, Founder & Director, Illumination Productions. Speaking on the campaign, Bagchi said, “It was exciting to be part of such a huge global brand and we knew we have to live up to the international standards of Danone’s commercials. The idea was to focus on the natural ingredients and showcase the goodness of Danone’s range of products. One of the main challenges was that how all the films, though different in concept and approach can have a unified feel of the Danone campaign.”Danone’s product range includes Dahi, Low Fat Dahi, Flavored Yoghurts (Strawberry, Vanilla & Mango), Lassi (Mango Flavoured, Sweetened & Masala Chaas) and UHT Milk (Toned and Slim).

The Delhi government told the Delhi high court that it would issue directions to schools in the Capital

to ban sale of junk food and carbonated drinks after the Centre comes up with guidelines in three months.The Centre has told the court that all India guidelines in this regard will be in place by July 21. “The Lt Governor has the power to issue directions under the Delhi School Education Act to ban sale of junk food in schools”, the government lawyer told a bench of Chief Justice D Murugesan and Justice Jayant Nath.The court was hearing a PIL filed by Rahul Verma of NGO Uday Foundation seeking a ban on junk food in Capital’s schools. “It is time we change the way kids eat in schools. Such a ban will set new standards for healthy food. On one hand, children are taught in classrooms about good nutrition ... on the other hand, we continue to make

So called Junk food may go off menus in Delhi schools

junk food available to them.”, he said.Appearing for the centre additional solicitor general Rajeeve Mehra said private firm AC Nielsen QRG-MARG Pvt Ltd is in the process of framing norms in this regard after an all India survey He said that after draft guidelines are prepared, the food processing companies will be consulted for their opinion and then the final guidelines will be prepared.“There are several reported incidents of food poisoning in the schools due to unhygienic food served in schools. There is an increase in the quantity and variety of junk foods sold within the school premises that may have deleterious effect on child health both in short and long term. Incidents may be many more but they go unreported due to interior location and poor communication”, the health ministry told the court.

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Dressed in formal grey trousers and carrying a Samsung Galaxy phone, Arvind Beniwal doesn’t

look like a regular farmer. He isn’t. He is one of a small group of farmers who have reaped rich dividends from strawberries in a most unlikely area – the dry northern plains around Delhi and Hisar in Haryana.About two dozen farmers have devoted around 100 acres to growing the fruit, exotic to the area, which was once the preserve of hilly tracts with moderate climates such as Mahabaleshwar, Udhagamandalam and Himachal Pradesh.Beniwal first planted strawberries in 1998 on a part of his 30-acre farm on the banks of Yamuna, just before the river enters Delhi, with planting material imported from California. The risk taken by moving away from the traditional cereal and

Rich pickings as strawberries grown in unusual places

vegetable crops seemed to have paid off as Beniwal has been planting strawberry every year on at least 10 acres of his farm.“The demand is growing for the fresh fruit and about 90 per cent of the produce is consumed directly. The rest is processed into jams and jellies,” he says. Beniwal’s local bulk buyers include Mother Dairy, Reliance Fresh and Bharti Walmart. The buy about 100-150 kg each daily. Besides this he sends the produce to markets in Kolkata through vendors.“The biggest advantage is that our farm is near the banks of the River Yamuna which provides not just adequate moisture to grow the crop but also a temperate climate. And the sandy loamy soil is a perfect fit for strawberry cultivation,” he says, adding that transporting and storing the delicate crop requires huge efforts as

infrastructure bottlenecks are constrained.Beniwal, who grows strawberries by intercropping with watermelon and capsicum, says the cost of cultivation for the fruit is about Rs 5 lakh per acre, including the rising labour costs.Production ranges from 12-15 tonnes per acre and the best produce comes from November and goes on till mid-April. Beniwal, who has got ISO 9001 certification for his farm, has floated a brand in his name – Arvind to market packaged strawberries.Indian strawberry production has been increasing since 1992, boosting yields and fruit quality. The Panchgani-Mahabaleshwar region accounts for about 85 per cent of the country’s strawberries.

As a global producer, marketer and provider of technology-based natural ingredients,

ingredient systems and integrated solutions for the food and beverages industry, Doehler is presenting innovative products and product applications at the DJAZAGRO 2013 in Algiers. Doehler’s integrated approach and the broad product portfolio are the optimal basis for advanced and safe food & beverage applications. The product portfolio is ranging from flavours, colours, speciality & performance ingredients, cereal ingredients, dairy ingredients, fruit & vegetable ingredients to ingredient systems. Doehler will also be showcasing many new product applications which perfectly match the consumer demands for naturalness and new taste sensations. These product applications are ranging from still drinks with a higher juice content, nectars, juicy energy drinks as well as innovative fruity milk drinks. Following the company slogan “We Bring Ideas to Life.”, Doehler supports

Doehler at DJAZAGRO 2013: WE BRING IDEAS TO LIFEits customers with an integrated approach for the introduction of new beverages and food products on the market.Full fruitiness with innovative still drinks and nectars50 billion litres of still drinks are consumed worldwide – and therefore still drinks are the biggest category within beverages containing fruit juice. Following this trend, Doehler will be showcasing still drinks with a juice-content of 20-30 % creating an authentic fruit taste and a full mouth feel. Moreover, at DJAZAGRO a range of nectars like mango and guava flavour will be presented.Energy drinks – a recipe for global successEnergy drinks are among the most dynamic and successful beverages in recent years. The energy market is set to diversify even further in the coming years, with the trend shifting towards new flavours. Based on extensive experience in energy drinks, Doehler will showcase classic energy drinks as well as juicy energy drinks geared for success. Fruity milk drinks – new taste varietiesFruity milk drinks are very popular in the

North African market. At DJAZAGRO, there will be milk drinks with innovative flavour profiles and milk drinks providing a authentic fruit taste by using 10-15 % juice available for tasting. Due to a wide range of Doehler flavours and juice concentrates there is no limit for creating unique product applications.Carbonated soft drinks – new sparkling impulsesDoehler has developed carbonated soft drinks with new taste varieties from exotic to traditional, to open market potentials and to differentiate them in a market dominated by classic taste profiles. Thanks to a broad portfolio of high quality flavours especially for CSDs, the beverages stand out thanks to their particular authentic and juicy taste. Alongside these product applications, Doehler will also be unveiling a wide range of ingredients and ingredients solutions for the beverage and food industry at the fair.

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For as long as bees have been building hives, people have been drawn to the taste of honey.

And the attraction is growing, with honey popping up on product labels for everything from Greek yogurt to alcoholic beverages. As a flavor, honey appeals to consumers’ desire for something sweet; as an ingredient, it addresses nutrition demands — hence all the buzz.The National Honey Board, Firestone, Colo., cites many categories in which honey is excelling, including food/energy bars, alcohol and sports/energy drinks … and for good reason.“Honey’s popularity among food and beverage manufactures continues to increase, mainly being driven by consumer preferences for more natural, clean-label products that taste great,” says NHB Director of Marketing Catherine Barry. “Honey is the perfect sweetener, inclusion and flavor enhancer for consumers who want natural products but want them to taste like indulgent foods and beverages.”Many consumers are looking for all-natural products that don’t contain additives and preservatives, adds Lisa Hansel, assistant vice president of sales and marketing for Sue Bee Honey, Sioux City, Iowa. “One-hundred percent pure honey is also fat-, sodium- and cholesterol-free and contains healthful antioxidants and micronutrients. Second, a growing number of consumers are becoming aware of the importance of the American honey bee, which is responsible for pollinating hundreds of American crops, like almonds, oranges, apples, cherries and more. Third, honey is the perfect all-natural sweetener to replace sugar in recipes for both consumers and manufacturers. It provides a great flavor as well as a consistent texture and taste.”Honey Do’sWhen it comes to taste, no two honeys are alike.“What many people do not know is

Honey Gaining in Sweetener Popularity for Many Food

Manufacturers-USthat honey varies incredibly by color and taste depending on what species of flower the bees collected the nectar from,” says Ted Dennard, president of Savannah Bee Co., Savannah, Ga. “So a sourwood honey [made from the blossoms of a sourwood tree] will be completely different from an orange blossom honey. Even the ratio of fructose and glucose sugars varies between honey varieties.“I believe what most people associate with a honey flavor is something drummed up by a flavor company many years ago that was based on a strong smelling blend of honeys, which is what most companies bottle,” Dennard continues. “They are blended to achieve a consistent color without regard to the taste.”Just ask the folks at Sue Bee, which “has a long and proud tradition of supplying 100 percent all-natural, product of U.S.A. honey,” Hansel says. Sue Bee’s floral sources include orange blossom and clover, and its varieties include Aunt Sue’s Strained Honey and Organic Honey, plus a spreadable clover spun honey.“We are consistently researching innovative ways to develop new recipe ideas and promote the delicious benefits of honey,” Hansel says. “We also partner with many companies throughout the U.S. who are fulfilling consumer demand for more honey-flavored products.”Private label is getting in on the action, with store brands such as President’s Choice selling items such as chocolate bars in Swiss dark or milk chocolate, both with “honey almond nougat”; honey dijon (and honey dijon yogurt) salad dressings; and a Greek yogurt smoothie frozen novelty in honey flavor — the last a low-fat, probiotic novelty made from “100 percent Canadian milk” and Honibe honey from Island Abbey Foods Ltd.Meanwhile, Honibe has two new products: Honey Lozenges (“Nature’s

Cough Drop”), in menthol and eucalyptus varieties, and Honey Vitamins (“Honey for Health”) in vitamin C and D with honey varieties. All are examples of how honey is “expanding beyond being a flavor into an active ingredient within the natural health product platform,” says Lindsay Mulligan, marketing manager for Honibe producer Island Abbey Foods Ltd., Charlottetown, Prince Edward Island.“The possibilities are endless,” Hansel says. “We are constantly providing consumers (via Sue Bee’s website) with new recipes and ways to use honey in their daily lives,” she says, as appetizers, main dishes, salads, soups, beverages, desserts and more. “Honey is not just for tea and toast anymore. An increasing number of consumers are preparing family meals at home with honey. Popular cooking shows are presenting creative ways to use honey as a substitute for sugar or an all-natural alternative to other sweeteners.”Honey as a flavor is more prevalent in breakfast cereals and granola bars, as well as healthy snacks and energy bars for athletes, Hansel adds, “due largely to its immediate absorption into the bloodstream, resulting in a quick initial boost of healthy energy, as well as a source of steady, longer-lasting energy.”Honey is making a name for itself as a flavor in alcoholic beverages, too.“One of the biggest whiskey producers (Jack Daniels) recently launched a honey line (Tennessee Honey), and competitors (including Wild Turkey) were quick to follow their lead,” Barry reports. “Several lines of honey-infused vodka, tequila and rum have made their way to the shelves, and are used to create new and unique cocktails.”Dennard agrees that “there seems to be a new honey whiskey popping up every month.” Meanwhile, Savannah Bee Co.’s flagship retail store is introducing people to mead, which Dennard describes as “wine made with honey rather than grape juice. There can be many variations on this with the addition of fruits, herbs, hops, etc. The Mayans had a mead made of honey, water, yeast and hot peppers.”Now that’s thinking outside the hive.

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Oil & Food Journal Apr'13