Oil & Food Journal August 2015

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Vol 10 Issue 10 August 2015

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Coconut water: Volume all it's cracked up to be? Agro-export: The case of India 10th

Feeding India's Flourishing Food Sector

INTELLECTUAL PROPERTY RIGHTS (IPR) IN FOOD INDUSTRY

FSSAI: A MENACE OR A MESSIAH


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CONTENTS

37

Coconut water: all it's cracked up to be?

Is Mondelez, maker of Oreos & Cadbury, a possible takeover target in Food Industry? 31

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41

INTELLECTUAL PROPERTY RIGHTS (IPR) IN FOO INDUSTRY 49

CHOCOLATE

CHALLENGES 23

Moving Towards Sustainability –

by Eating Less Meat 35

Choosing the Right X-Ray Solution 53

A CHICKEN IN EVERY POT: CHALLENGES IN

THE INDIAN

Feeding India's

Flourishing Food Sector Vol.10 Issue 10 August 2015

Agro-export: The case of India

POULTRY SECTOR


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Vol 10 Issue 10 August 2015

The views expressed in this issue are those of the contibutors are not necessarilly those of the magzine. though every care has been taken to ensure the accuaracy and authenticty in infomation, "Oil & Food Journal" is however not responsible fordamages caused by ministerpretation of infomation expressed and implied with in the pages of this issue. All disputes are not to be referred to Mumbai Jurisdiction

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EDITORIAL

atching television can give you insights of many things. Yesterday while surfing the channel I came across the new advertisement rolled out by ITC for its noodle brand.Theadvertising campaign directly emphasized on the safety and quality of its Yippee noodles, which it sells under the Sunfeast brand. Yippee noodles, a prominent advertiser in the instant noodle category, had gone off air after concerns after the Maggi controversy. The new Yippee noodles commercial, created by Ogilvy & Mather, shows the factory where it is manufactured. The commercial is being telecast on general entertainment channels (GECs), kid's channels and music channels. The noodles category has been impacted due to the recent spate of events. So ITC went ahead to clear the air of confusion and reinstate consumer trust in its noodles the category and has embarked on communicating with the consumer in an open and transparent manner. Yippee is cashing on the Maggi’s set back, but they have to be more rigorous as the competition is going to heighten with the Maggi trying to make a comeback. The Bombay High Court lifted the ban on Maggi noodles but that doesn't mean the product will be back on the shelves immediately. The next six weeks will be crucial —that's the time the court has given Nestle to get samples of five variants tested at accredited laboratories in Hyderabad, Mohali and Jaipur to check its lead content. The ban on Maggi noodles had caused consternation among packaged food producers, many of which withdrew similar products from the market fearing that they would be targeted. Food processing minister Badal was prompted to complain that an "inspector raj" had led to concerns among packaged food companies, which was stalling investment and threatening the government's Make-in-India initiative. As expected Food safety regulator FSSAI doesn’t seem happy with the verdict and is reviewing the Bombay High Court order that quashed its order to ban Maggi, and has not yet decided if it will challenge the order in Supreme Court. According to FSSAI Chairman Ashish Bahuguna the Supreme Court option is neither ruled in nor ruled out and if it is found that the court had not taken regulator's submissions only then they will think of going to Supreme Court. Nestle India problem doesn’t seem to be over as the Consumer Affairs Ministry has also filed a class action suit against Nestle India seeking about Rs 640 crore in damages for alleged unfair trade practices, false labeling and misleading advertisements. It is for the first time that the ministry dragged a company to the National Consumer Disputes Redressal Commission (NCDRC) using a provision in the nearly three-decadeold Consumer Protection Act The company says it is confident of defending the Rs 640-crore class action suit filed by the government against it before NCDRC. Well let’s wait and watch. Time doesn’t seem to be good for PepsiCo India either as many of its senior executives have left the company over change in corporate strategy. They have left the MNC due to the company's much criticized Power of One (PO1) strategy. In this strategy PepsiCo merged its foods and beverages businesses in many markets and all functions except supply chain and sales had become PO1 two years ago as the retail industry was facing attrition of around 40%. The idea behind the strategy was that selling food and beverages as part of a single portfolio and keeping a foot ahead of rivals such as Coca-Cola, which only sells beverages. The new idea actually had exerted a lot of pressure on executives making them to quit PepsiCo as they could see their portfolios shrinking. Though I editorial space is full but I can’t end this editorial without mentioning that Bihar seems to be on the governments mind a lot. My question is; does the centre really want to enhance the state or is it the upcoming election that is making them so compliant in the state. Anyway recently ourFood Processing Minister Harsimrat Kaur Badal laid the foundation stone for a Mega Food Park in Bihar to be built at an estimated cost of Rs 117.2 crore, which is expected to benefit 30,000 farmers and generate around 6,000 direct and indirect jobs in the state. The Centre has sanctioned as many as three Mega Food Parks in Bihar. The work on the first Mega Food Park, which is being built in Khagaria, has already started. The third park of the state will come up at Buxar. That’s all for this time rest is next.


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Introduction A sports nutrition product is intended to improve metabolic and physical performance during exercise. The sports nutrition market is divided into three basic product segments: sport drinks (the largest segment), foods, and supplements. Sports drinks were initially designed to help rehydrate the body after strenuous exercise that has depleted energy stores, water and electrolytes from the body. Additional benefits from sports nutrition products may include increased sport performance and better muscle recovery

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following exercise. In recent years, the popularity of sport nutrition drinks has increased dramatically as demand for the product has grown among non-traditional athletes. For example, sport drink sales in the U.S. increased by 7% between 2011 and 2012, to USD 12 billion in 20121. The sports drink market alone is expected to grow at 9% from 2013 to 2019, reaching an estimated value of USD 37.7 billion in 2019, according to a recent report from Persistence Market Research2. Traditionally, sports performance enhancement products (also called “ergogenic aids�) were the exclusive

NUTRITION

domain of a relatively small group of bodybuilders and extreme athletes. However, according to the Nutrition Business Journal, this core audience for sport products accounts for only 5% of total industry sales3. There are a much larger, and growing, number of mainstream


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consumers, who are trying to maintain an active and healthy lifestyle, that are attracted to sport nutrition products. This greater personal focus on fitness and health is reflected in the increase in the number of gym memberships. There are now more than 30,000 health clubs in the United States that cater to the needs of more than 45,000,000 members and generate annual revenues of $19 billion 4. Moreover, health clubs are now not only for the young – one out of four health club members are adults 55 years and over. It is expected that interest in sports nutrition products will continue to grow in the future, along with a rising global population. These market trends support the need for food companies to develop more of these products directed to different segments of the population (e.g., weekend warriors, sedentary individuals initiating exercise programs, active regular exercisers, dieters, active healthy adults, elderly, athletes and other sport enthusiasts, etc.). Moreover, the growth in mainstream sports nutrition users will allow for the expansion of more specialty sport products, including more vegan and vegetarian-based product formulations, gluten-free products, as well as new convenient delivery formats (e.g., readyto-drink products and energy bars). In addition, expansion of sports nutrition products available on grocery store shelves will also provide greater ease of access by ordinary shoppers. Market Drivers Emerging middle class consumer markets in South America and Asia will also help to drive future sales for these products in those regions. New sport nutrition products will likely focus on

adding natural fruit ingredients, whey protein from dairy products, and other nutritional or botanical ingredients. Also, the sports nutrition category provides an opportunity for niche products directed at different segments of the population. For example, there is a global rise in the number of people who are obese. According to the World Health Organization (WHO), worldwide obesity has nearly doubled since 1980. In 2008, more than 1.4 billion adults worldwide were overweight or obese, with another 42 million children under the age of five identified as overweight or obese in 2013. Obesity is also an important risk factor for other chronic diseases, such as cardiovascular disease and diabetes. Thus, given the usual co-morbidities associated with excess body weight, an opportunity exists to develop novel sport nutrition products that will take into account the fact that many consumers of sport nutrition product may also be overweight or obese and have Type 2 diabetes and are interested in products that fit within their diabetes meal plan. These individuals could potentially benefit from new products that help maintain healthy blood glucose, such as products with altered protein: carbohydrate: fat ratios or that use slowly digestible carbohydrate sources. In addition to combating the effects of obesity and its adverse effects on cardiovascular disease risk and blood sugar management, sports nutrition products may also be able to capitalize on the growing number of adults and elderly people who are interested in healthy aging. Additional market drivers include the ever rising costs of health care and the need to focus more on novel approaches to disease prevention, which includes the use of various botanical and other plant ingredients to promote good health and an active lifestyle. Types of Delivery Vehicles Among sports nutrition drinks, a number of possibilities for new products exist, including ready-to-drink beverages and stick packs that could deliver either hypotonic, isotonic or hypertonic solutions. A variety of solid sport food

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NUTRITION

delivery vehicles exist as options, including various bars, gels or other types of convenient delivery vehicles. Supplements can be found as pills or capsules and offer another opportunity to deliver specific individual nutrients and botanical ingredients at effective dose levels. Novel sports nutrition products need to cater to the on-the-go nature of people’s lifestyle and the need for convenience and portability. These product drivers will encourage the development of new fortified foods and snacks, incorporating ingredients that help boost endurance and energy. Technological advances, including nanotechnology, are likely to lead to new avenues for the development of extended, sustained released products to provide better delivery of active levels of these compounds for better performance. Optimal Sports Nutrition Ingredients The most important key for achieving more optimal energy and performance in your everyday life is to maintain a healthy, nutrient-rich diet and regular daily exercise to help control body weight and reduce the risk of nutrient


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NUTRITION (average age 24 y) soccer league players completed two exercise trials separated by 7 days. The soccer players ingested 700 mL of solution (placebo or CHO) during the simulated match. After adjusting for body weight, the investigators found that increasing CHO intake was associated with improved time to fatigue during the simulated soccer match.

depletion and the development chronic diseases. Additional characteristics of a healthy lifestyle include getting a good night sleep and eliminating smoking and excessive alcohol consumption. Beyond these general health guidelines, there are a number of important nutrients and other ingredients (Table 1) that have been shown, within the past five years in clinical trials, to enhance metabolism, prevent muscle damage, and/or enhance physical performance in humans. For the interested reader who wants more detailed information, some succinct authoritative reviews of the current stateof-the-art scientific evidence base for various aspects of nutrition and physical performance are available and can be found at the end of this article. Macronutrients Carbohydrate: Carbohydrate is an important component of an active lifestyle and is critical for optimal sports performance. High intensity exercise demands available carbohydrate in the form of glucose. Most of the glucose in your body is derived from simple and complex dietary carbohydrates. Dietary starch is broken down in the intestine to glucose and absorbed. Simple dietary sugars like sucrose (table sugar) and lactose (milk sugar) are also broken down by the intestine into glucose and

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the simple monosaccharides fructose and galactose, respectively, which also are absorbed. The liver then metabolizes the fructose and galactose into glucose. The liver stores some of this glucose as glycogen, which can be broken down to provide glucose to the blood to meet energy needs of the body. Some of for local storage, which can be called on later by our muscles as needed to fill a quick energy need during vigorous exercise. With prolonged exercise at moderate intensity, muscle glycogen is depleted and leads to fatigue and reduced work capacity. The prevention of carbohydrate depletion during exercise is associated with superior physical performance. Products such as sport drinks that provide water, available carbohydrate and electrolytes to replace glucose and sweat electrolyte loss can enhance performance during bouts of competitive endurance exercise. Glycogen loading, achieved by consuming high carbohydrate meals prior to serious exercise, may also be of some benefit to maximize muscle and liver glycogen stores. In a recent study5, the effect of ingesting a 7% carbohydrate (CHO) solution versus a placebo delivering no carbohydrate was evaluated during a simulated soccer match. In this double-blind, placebocontrolled study, 22 trained, male

An area receiving little study has been the influence of macronutrient composition on exercise-induced endocrine responses to exercise. In a recent study6, investigators compared the effects of (i) glucose ingestion at rest, (ii) glucose and protein at rest, (iii) glucose ingestion after exercise, and (iv) glucose and protein ingestion after exercise. Exercise consisted of 45 minutes cycling at 60% of age-predicted maximal heart rate. Test drinks contained 50g glucose or 50g glucose plus 20 g whey protein. It was observed that coingestion of CHO plus protein reduced glycemic response and increased insulinemic response. Growth hormone response to exercise has also been studied7 after ingesting either 0.8 g or 1.1 g sucrose/kg/hour versus 0.8 g sucrose plus 0.3 g whey-protein isolate. Ingesting whey protein with CHO during short-term recovery from 90 minutes of exercise increased the growth hormone response to exercise.

Protein: There has been growing scientific interest in the potential benefits of milk-derived whey protein on exerciseinduced metabolism and physical performance. In addition to the studies concerning CHO plus protein discussed above, some investigators have studied the effects of protein alone on physical performance and muscle metabolism in different groups. For example, recently a randomized, double-blind, placebo-


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controlled study8 in 62 frail elders (age 78 y) of progressive resistance training found that ingestion of extra protein (30 g/ day) increased lean body mass. In another recent study9, 12 healthy elderly adults (age 59 y) were studied on two different occasions following 1 hour of exercise at 50% of maximal rate of oxygen uptake. In one treatment, they received 60g CHO and a second time they consumed an isocaloric beverage containing 40g CHO plus 20g whey protein.

NUTRITION

performance and when consumed after exercise, accelerates muscle recovery Lipid: Another recent area of investigation in sports nutrition has considered the effects of macronutrient composition of pre-exercise meals on endurance performance. In this study, subjects consumed a high-carbohydrate diet at each meal for three days, followed

product of reactive oxygen species (free radicals) that can potentially have damaging effects on muscle. This has led to investigations of the potential benefits of antioxidants on physical performance. These studies have shown some benefit of antioxidant administration in the form of N-acetylcysteine (NAC) on reducing exercise-induced muscle fatigue during

by a high-fat meal supplying 1000 kcal (as 30% CHO, 55% fat and 15% protein) or an isocaloric, high-carbohydrate meal (71% CHO, 20% fat and 9% protein). Endurance performance was based on running time to exhaustion. The time to exhaustion was longer in the high-fat meal than in the high-carbohydrate meal group11.

submaximal exercise. NAC provides the aminoacid cysteine to the body, which can be used to synthesize an important intracellular antioxidant molecule called glutathione. Dietary antioxidants, such as the essential micronutrients vitamin C, beta-Carotene (vitamin A) and vitamin E, are also of general benefit to the body, and consuming healthy diets rich in fruits and vegetables or containing fortified products can help to supply these important nutrients.

Consumption of the protein-containing beverage after a bout of aerobic exercise increased whole body protein turnover. It is known that high quality protein sources, such as soy, whey, and casein are all capable of promoting protein synthesis post-exercise. In a clinical trial of 19 young adults before and after ingestion of 19 g protein blend (soy and dairy protein mix) or 19 g whey protein, which was consumed one hour after high-intensity leg resistance exercise, consumption of mixed soy and dairy protein prolonged blood elevations of amino acids, as well as protein synthesis in skeletal muscle compared to whey protein alone 10. Not all dietary protein, even high quality protein, is the same. Intact casein and whey protein deliver protein as polypeptides which must be digested before they can be absorbed. PeptoPro速 is a hydrolyzed casein that delivers protein as di- and tripepties that require little or no digestion. PeptoPro速 can therefore be consumed during activity, directly absorbed and delivered to exercising and/or recovering muscles to help repair and rebuild damaged muscles and replenish glycogen stores. A study in competitive athletes and recreationally active men found that PeptoPro速 improves late-exercise

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Vitamins-Minerals-Amino Acids A number of vitamins, minerals and individual amino acids have been evaluated in the context of potential ingredients to improve exercise and sport performance. New studies of these ingredients in the sports nutrition area are discussed below. Antioxidants are important constituents of a healthy diet and are important to promote optimal physical performance and health. In this regard, a number of different essential antioxidants, such as fat-soluble vitamin E, Beta-Carotene, and water-soluble vitamin C and various phytonutrients, such as polyphenolcontaining products would appear to be beneficial. Exercise results in the

Recently, the influence of vitamin C on heart rate and ratings of perceived exertion during exercise has been evaluated in 20 obese adults consuming a hypocaloric diet12. The subject received either placebo or 500 mg vitamin C daily for four weeks while ingesting the hypocaloric diet. Participants walked on a treadmill at predicted 50% maximum oxygen consumption. Heart rate and perceived exertion following exercise was decreased in the vitamin C group compared to the control group. Magnesium: Magnesium is an essential mineral nutrient that is important in energy


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NUTRITION of a non-caloric sweetened beverage, with either 1.66 g of taurine or no taurine, one hour prior to exercise resulted in a 16% increase in total fat oxidation over a 90-minute exercise period, although it did not affect performance17. Participants cycled at 66% maximum oxygen consumption for 90 minutes followed by a timed trial.

metabolism. The effects of magnesium supplementation on the physical performance of volleyball players had been assessed in 25 male, professional volleyball players13. The participants received either 350 mg magnesium/day for four weeks or placebo. Magnesium supplementation decreased exerciseinduced lactate production and increased (jump training) performance. L-Arginine: Arginine is an important amino acid that has many potential metabolic effects. The effects of L-arginine or L-glutamine addition to a glucose-electrolyte solution on exogenous glucose oxidation (energy production) and perceptions of exertion during endurance exercise was studied in eight adult cyclists, who rode for 150 minutes at 50% peak power on 4 occasions while ingesting solutions containing glucose and sodium citrate with either 4.25 mmol/L L-arginine or 45 mmol/L L-glutamate14. L-arginine consumption resulted in a 12% increase in exogenous glucose oxidation, while no effect of L-glutamate was noted. Leucine: The amino acid leucine has received much attention as an important amino acid that influences protein synthesis. In a randomized, cross-over study, eight adults participated in two bouts of exercise on a cycle ergometer for one hour at 60% peak oxygen uptake15. The subjects consumed 10 g essential amino acids with different leucine

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content. The drinks containing either 1.87 g leucine or 3.5 g leucine were consumed during exercise. Muscle protein synthesis was greater during recovery following the ingestion of the higher dose of leucine. In another recent study, 10 male adult cyclists performed two-hour interval training bouts on three consecutive days and ingested either a leucine-protein, high-carbohydrate (0.1/0.4/1.2/0.2 g/ kg/hour leucine, protein, carbohydrate and fat, respectively, or an isocaloric control drink containing only protein, carbohydrate, fat (0.06/1.6/0.2 g/kg/ hour, respectively) with no added leucine16. Post exercise leucineprotein ingestion improved sprint power and reduced overall tiredness. Taurine: Taurine is another amino acid that may influence exercise performance and muscle metabolism. In a study of 11 endurance-trained male cyclists (27 years old) it was found that ingestion

β-Alanine: Beta-alanine is found in the normal diet in meat, especially poultry meat. This amino acid along, with the amino acid L-histidine, can form the dipeptide carnosine in muscle. Oral supplementation of β-alanine can increase muscle carnosine concentration. Exercise normally produces acid in the body and can lead to a drop in muscle cell pH. Carnosine acts as a buffer in muscle to offset the exercise-associated drop in muscle pH and has been shown to improve physical performance. In a recent randomized, placebo-controlled study, in 16 young (age 27 y) cyclists were supplemented with either β-alanine at 65 mg/kg/day or placebo over four weeks. β-alanine increased average power per repetition during a four-minute cycling time trial, while fatigue index was significantly reduced 18. Creatine: Creatine is probably one of the most studied of all the potential ergogenic


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NUTRITION The performancerelated sport nutrition ingredients discussed above represent compounds that are either dietary nutrients or are naturally produced substances in the body. Consumption of fortified food products or dietary supplements with added amounts of these compounds may augment normal production or levels of these molecules in the body, leading to a positive energy and endurance benefits.

aids. This compound is made naturally in the body, and is also consumed in diets containing muscle tissue; i.e. meat or fish. In the body, creatine is modified chemically by a process called phosphorylation to store energy and is found almost exclusively in muscle, where it serves as a quick source of ATP energy for muscle cells when needed. Oral supplementation with creatine can increase creatine content in muscle and has been shown to have positive benefits on muscle performance. For example, a double-blind study was recently conducted in 25 subjects (under 20 years old) who were randomly assigned to either 0.3 g/kg/day creatine or placebo for seven days19. The athletes performed two separate sprint tests. Creatine supplementation was able to reverse the rise in the blood inflammatory markers tumor necrosis factor alpha (TNF-α) and C-reactive protein (CRP) up to one hour after the acute sprint test. Other studies have demonstrated that creatine supplementation attenuates the cardiovascular response to exercise20, decreases exercise-induced inflammation, and increases power21.

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Botanicals and Other Phytochemicals Eleutherococcus senticosus (“Elethero”): Eleuthero is a species of small, woody shrub that is native to Eastern and Northeastern Asia (China, Korea, Japan, and Russia) and has been commonly increasing energy and as an anti-fatiguing agent. In a study of nine recreationally trained college-aged men, it was observed that ingestion of 800 mg/day of eleuthero during an eight-week, randomized, double-blind,

placebo-controlled, cross-over trial had positive effects on endurance capacity during a cycling exercise at 75% peak oxygen consumption until exhaustion22. This study found that peak oxygen consumption was increased by 12% and endurance time improved by 23% following eleuthero ingestion. Rhodiola rosea: Rhodiola rosea is a botanical that has been reported to promote fatty acid metabolism and to improve body resistance to exercise. A crossover evaluation of antioxidant status and other biochemical parameters have been evaluated in a group of 14 competitive athletes during strenuous exercise (cardio-pulmonary exhaustion test). In this study23, it was observed that Rhodiola consumption for four weeks reduced plasma free fatty acids and decreased blood lactate and plasma creatine kinase levels, compared to the response of these subjects to the exercise test following ingestion of placebo. Flavonoids: There is also another important category of compounds that are not essential nutrients but are found in plants and can have a positive health or performance benefit. These bioactive phytochemicals can be incorporated into fortified products or supplements to help promote greater endurance and stamina. Flavonoids represent a large class of phytochemicals produced by plants. Typical dietary intake of flavonoids in the


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United States is 200 mg/day. Sources of flavonoids include fruits and vegetables and tea. Flavonoids can have anti-oxidant effects, as well as other health benefits including helping to maintain healthy inflammation24, that are likely to be beneficial, especially to the highly active individual or athlete. Caffeine: Caffeine is the most commonly consumed dietary stimulant and is found as an ingredient in coffee, tea and cola drinks. In nature, caffeine is actually a natural insecticide and is found in over 60 different plants. Research suggests that caffeine does have important effects on exercise capacity and alertness. Caffeine is also found in many products specifically designed to produce energy and alertness, such as energy shots, energy drinks and various energy-promoting supplements. A number of studies of the effects of caffeine on exercise performance have been conducted recently25-28. These studies indicate that caffeine can improve muscle performance. Guarana: Guarana is an increasingly popular ingredient from a South American plant found in the Amazon basin region. Guarana has a high concentration of caffeine in its seeds. This property has led to its inclusion in many energy shots or other energy-promoting beverage products. Due to its caffeine content, drinks containing guarana will help reduce fatigue and improve alertness. Beware, however, that energy drinks often also contain additional caffeine as an ingredient and some caution should be used concerning excessive use. Adverse effects of excess caffeine, from any source, can increase heart rate, and cause irritability and tremors. Green Tea Catechins: Green tea is particularly popular as an ingredient in a variety of novel food products. Green tea contains flavonoid compounds called catechins, especially EGCG (epigallocatechin 3-gallate), that have antioxidant properties and may lessen the deleterious effects of exercise. Some evidence suggests EGCG may also promote fat burning and improve maximal oxygen utilization during

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exercise. Additionally, a recent study has shown that the consumption of green tea with exercise increases resting metabolic rate compared to exercise alone29. Beetroot Juice: Dietary supplementation with beetroot juice (BR), containing approximately 5-8 mmol inorganic nitrate (NO3(-)), increases plasma nitrite concentration (NO2(-)), reduces blood pressure, and may positively influence the physiological responses to exercise. In a recently published study, consumption of 140 and 280 mL BR reduced the steady-state oxygen (O2) uptake during moderate-intensity exercise by 1.7% and 3.0%, whereas time-to-task failure was extended by 14% and 12%, respectively, compared with placebo. The findings of this study indicate that whereas plasma NO2(-) and the O2 cost of moderateintensity exercise are altered dose dependently with NO3(-)-rich BR, there is no additional improvement in exercise tolerance after ingesting BR containing 16.8 compared with 8.4 mmol NO3(-).30 Product Applications Looking Forward The speed of product innovation and new product introduction has significantly increased as the sports nutrition category becomes more main stream and continues to grow exponentially. Even with fast track product development, many companies are using ingredients that have a scientific foundation and a strong safety record to back them up rather than using “ingredients of the moment.” This is in part because consumers are demanding that the product they are buying can actually deliver on its health claim. Within the sports nutrition category, they can include products that target such needs as those that help build muscle, those that burn fat and those that increase endurance and focus, just to name a few. In order to target the hardcore athlete, or those consumers that are taking exercise much more seriously than a two or three times a week visit to the gym, manufacturers will need to create products that address the multitude of specific needs within this group. While ease of consumption and portability makes it easier for the consumer to utilize a beverage or bar application for their performance

NUTRITION enhancing products, all ingredients pose formulation challenges. These include interactions with other ingredients, the type of beverage/shot (i.e., dairy, water, juice, etc.), just to name a few. A number of formulation strategies exist that can be employed to counter these issues. A few of these strategies can include encapsulation of specific ingredients, the manner and timing in which an ingredient is added and adjusting processing conditions. A formulator will also need to prioritize the benefit of a particular ingredient in a given product. To be credible, the product should offer a minimum concentration of active components to ensure a measurable benefit. It is also easy to focus on active ingredients and overlook the importance of the underlying foundation properties of the product. Many of the active ingredients contribute metallic or bitter flavors. Hence acidity, saltiness, and sweetness should be carefully balanced to optimize the product’s taste and flavor profile. Despite the quest for functionality, the single greatest predictor of a new product’s success is taste, not its functional ingredients. Moving forward, we will need to see where advancements in future studies to see how that information will impact trends in consumer awareness and demand and their impact on product development within the sports nutrition arena. The area of weight management, for example, is not going to go away. But, as more research is done with, let’s say, botanicals, one would assume we will start to see more callouts on these ingredients. A great example of this in the current market for these products is Green Tea. To successfully introduce new sports nutrition products to the marketplace, a manufacturer needs lay a solid foundation at the very beginning of the development process. That foundation should include partnering with an experienced nutritional premix formulator to minimize the challenges associated with not just bringing their products to market, but to ensure a product that lives up to its label claims delivers repeat purchase. Additionally, the safety of nutrients, along with traceability is extremely important in today’s environment, where ingredients are sourced from around the globe.


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CHOCOLATE

CHOCOLATE CHALLENGES C hocolate is known for its rich, sweet lingering taste. It also supplies nutrients and works even as a medicine. Another trend that we see nowadays is the concept of gifting chocolates during festive occasions instead of gifting traditional sweets. This could be because of the longer shelf life and ease of delivery that the chocolate

can offer along with novelty which the traditional sweets do not offer.

The high content of antioxidants of Theobroma cocoa beans has been considered to be responsible for its health benefits. The most popular methylxanthines are: caffeine, theophylline, and theobromine. Methylxanthines in cocoa is psychopharmaceutical, or psychotropic i.e. capable of altering the perception, mood, or consciousness. 50 g of dark chocolate contains 19 mg caffeine and 250 mg theobromine.

Cocoa products, which are rich sources of flavonoids, have been shown to reduce blood pressure and the risk of cardiovascular disease. Although in short-

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term intervention trials, dark chocolate has been reported to reduce total and LDL cholesterol with no major effects on HDL and TG, regular consumption has been found to be useful in increasing the HDL cholesterol, lipoprotein ratios and inflammation markers. The Chocolate Industry Confectionery market in India was worth close to US $ 1.3 bn in 2013 and is


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 

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     

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   

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  

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expected to grow by 71% to reach US $ 2.2 bn in 2018. The last couple of years have seen a rise in new launches, product innovations and other value-additions in the confectionery segment. Changes in consumer preferences, rising disposable income, lifestyle are the main factors that are driving the confectionery industry. The confectionery market which is one of the largest developing food processing sectors in India is divided into 3 segments – Chocolate, sugar confectionery, gums. Of these 3 segments, the gums and jellies market is growing steadily with chewing gum expected to grow the fastest in the coming years. The visibility of these products has increased and is witnessing good rural penetration. The consumption of these products is more during the summer; hence climate plays a very important role in market performance and also in influencing the choice of the consumer. Specialty Fats. Traditionally, cocoa butter was the only fat that possessed the most desirable properties for making chocolate. Most of the premium chocolates made in India are made using cocoa butter which is majorly being imported. These chocolates are sold at a premium because of the high pricing of cocoa butter and due to demand and supply gap. The premium qualities and limited availability of cocoa butter, led to pricing of the fat above all others. This high price consideration is one of the

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main factors which motivated researchers to find replacers for cocoa butter. While confectionery prices remained stable, the price of cocoa butter kept on rising and this led to the first Cocoa Butter Equivalent (CBE) plant in 1960 in Silvertown in UK. This soon led to the development of many other types of replacer fats that were mixed with cocoa components and other materials to make chocolate confectionery. These fats not only reduced the high costs of production but also allowed the manufacture of tailor made products for particular applications. The replacer fats not only had to be cheaper, but also had to possess the premium characteristics of cocoa butter with no compromise on taste, functional property and yet economical. These fats came to be termed generally as Specialty Fats.

CHOCOLATE

Several organizations in Europe, where the consumption and demand for chocolates is highest, spearheaded research and production of Specialty Fats. Today, the bulk of the production is from countries like Malaysia and Indonesia. India has also become a major hub for manufacturing these specialty fats which are also called Cocoa butter substitutes, Cocoa butter replacers and Cocoa butter equivalents (CBS, CBR, CBE respectively). These specialty fats are widely used to make economical and affordable confectionery products as they are derived from natural sources and are trans free. Lauric Cocoa Butter Substitue (CBS) is used as total cocoa butter replacers as they are incompatible with cocoa butter and can tolerate up to 5% of other fats like cocoa butter, milk fat, etc. in the total recipe. Non Lauric Cocoa Butter Substitue (CBR) is compatible better with other fats like cocoa butter & milk fat and can tolerate from 5% to 20% of these. Cocoa Butter Equivalents (CBE) is fully compatible with cocoa butter in all proportions. These are exotic fats having SUS triglyceride structure e.g. Kokum butter, Sal butter, Mango butter fat etc. Global scenario The EU countries have in 2006 allowed 5% CBE fats in chocolate and they can still be declared as pure chocolate. Codex Alimentarius whose guidelines are accepted globally has categorized imitation chocolates / chocolate


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substitutes in which they have specified that the products can contain more than 5% vegetable fat other than cocoa butter. On the basis of these guidelines INDIAN Food Code (IFC) was created to categorize various foods falling in different segments for product-approval and compound chocolate was one such category to cover imitation chocolates. Indian Scenario & Challenges According to FSSAI (Food safety and Standards Act of India), chocolates are products obtained from cocoa butter only and no other vegetable fat. Chocolates made from these CBS, CBR and CBEs are called compound (imitation) chocolates. These chocolates are chocolate-like but cannot be termed pure chocolate by definition and fall under proprietary foods and one has to take approval from FSSAI and many manufacturers have been granted NOC for the same since there is no food safety risk involved in it. In India, representations have been made to FSSAI for allowing CBE to be added at 5% level which is under consideration. If we go by Codex and IFC, one can produce imitation chocolates using vegetable fats from typical 30% and above levels, as proprietary foods , taking proper product approval from FSSAI and declare it as imitation chocolate / chocolate substitute prominently on the label so that consumer is not misguided and takes an informed decision before buying, since there is no risk of safety and the product is available

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at reasonable price and delivers similar taste and value for money without any compromise on food / health safety just as pure chocolate. The industry also needs to have in place legible declaration on the label to differentiate it from pure chocolates. Chocolate and Ice-creams were considered niche products to be consumed by the high end consumers. Ice-creams are manufactured using dairy fat which provides the appropriate texture, setting property and flavor release. Dairy fat or Milk fat is an expensive ingredient in many developing countries and vegetable fats provide an inexpensive high quality alternative. The use of vegetable fats results in lower costs and higher production output. It also makes it possible to give the frozen dessert a better nutritional profile. Hence use of vegetable fats is widely accepted in Icecream industry. In case of Chocolates, cocoa butter availability has become a major issue and by 2020 it is going to become scarce, hence we have to start looking for alternatives. A typical chocolate composition contains 25-30% fat other than sugar, milk solids and cocoa solids, thus fat forming a major component of the formulation. India being a

CHOCOLATE tropical country, it experiences extreme weather conditions during summers when temperatures go as high as 45-48˚C. At this temp if the products are not stored in cool conditions, they tend to melt and stick to the wrappers. Inadequate cold chains, erratic power supply, poor infrastructure in rural and semi-urban areas are the biggest challenges that we are witnessing and these factors tend to affect the business for small and medium scale enterprises. These factors have prompted chocolatiers to develop heat resistant chocolates. These contain ingredients (specialty fats) which render the chocolate thermally stable and retain the shape even at high temp. The chocolates have a good melt profile with excellent flavor release and overall good organoleptic properties. There are many patents published by companies who are proactively working on this concept of thermally stable chocolates that won’t melt in hands but will melt in the mouth. The demand for chocolate is increasing and the urban consumers with greater health consciousness are going for dark chocolate which is rich in anti-oxidants. Thus the problems and challenges have to be tackled and develop strategies for growth of the chocolate industries by the farmers boosting the productivity of cocoa beans, creating more opportunities through research and innovations in processing and manufacturing and encouraging small scale industries. There is still lot more to be done to RAISE THE BAR.. Author is G. Subbulakshmi, Director, Research Centre, College of Home Science, Nirmala Niketan, New Marine lines, Mumbai


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GROWTH PATH

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Feeding India's

Flourishing Food Sector By-Gunjan Bagla Management consultant and author of Doing Business in 21st Century India

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alk into a fast food franchise such as McDonald's or Pizza Hut in India, and you are likely to consume condiments, tomato paste, and pasta from a company called FieldFresh Foods Pvt. Ltd. A joint venture between the Singapore's Del Monte Pacific Group and India's Bharti Enterprises, it manufactures pastas, pizza, canned fruits, fruit beverages, and condiments such as ketchup and mayonnaise. Del Monte Pacific operates in India with a subsidiary company in the U.S., Del Monte Foods. FieldFresh Foods runs R&D centers and factories in Punjab and Maharashtra, with over 4,000 associate farmers.

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Current State The food processing sector in India accounts for a third of the country's total food market and 10 percent of its GDP.

Expected to grow at 8.4 percent a year, the industry will reach $344 billion by 2025. According to Food Processing Minister Harsimrat Kaur Badal, in just the past year, the sector received $421 million in foreign direct investments. The Modi government has hopes that India will soon rise to become the largest food processor in the world. Companies in India have expanded their facilities and reach to increase processed food production. Take the world's largest basmati rice processing company, REIAgro Limited, which executes the entire process from drying and de-husking to


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o cater the need of Indian food industry, the Confederation of Indian Industry has been organizing FoodproExhibition cum Conference on Food Processing, Packaging & Technology. Since its inception in 1995, the Indian biennial event has been an excellent business platform for the food industry. Foodpro is a desired business networking platform for all the stake holders from the Food Industry- right from food processing to packaging and from ingredients to finished processed foods. Over the years, Foodpro attracted exhibitors across the globe to explore Indian Food Industry and had been a platform to understand global market. The Eleventh edition of Foodpro- Foodpro 2015 is scheduled from 28-30 August 2015 at Chennai Trade Centre. The event has partnered with Republic of Korea as partner country and the Government of Tamil Nadu as the Host state. Given its significant role in development of the food industry, Foodpro has always been supported by the Ministry of Food processing Industries, Government of India. This year, Foodpro 2015 is expected to attract 200+ Indian and International brands as exhibitors and around 30,000 business visitors across the country. Already, the event has attracted international exhibitors from Canada, China, Denmark, Germany, Italy, Korea, Malaysia, Netherlands, Spain and many more. Foodpro 2015 is not only a business platform meant only for Industry leaders. In order to promote small scale food industries, Foodpro 2015 is supported by National small scale industries, the Government of India to provide financial assistance to the Small scale companies. To enhance the business opportunities for the exhibitors, Foodpro 2015 would attract Food processing plants, chains of hotels & Restaurants, Bakers, Caterers, consultants across the country. Exhibitors are given opportunity to launch their product/ services to the visitors through a dedicated “Product Launch platform for 25 minutes” at the venue. It enables the exhibitors to reach the right audience and project their products to their key distributors and clients. Foodpro 2015 has a strong network with the key food related associations to attract the right visitors for our exhibitors. Foodpro 2015 does not end here. With the support of Food and Agriculture Centre of Excellence (FACE) and Tamil Nadu Technology Development Promotion centre (TNTDPC), Foodpro is accommodating a high profile business conference, which would focus on CEO's Session on Future of Food Processing Industry, Emerging Business Opportunities in Agro Food Processing Sectors, New Technologies in Food production & Processing and Supply Chain Management. Around 200 senior personnel representing CEOs, Industry leaders & senior executives of leading manufacturers of processed & packaged foods, fresh produce, exporters; Retail chains and Government agencies are expected to attend this conference.


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milling and polishing to packaging and distribution. With a 22 percent market share in Delhi, Gujarat, Tamil Nadu, and Maharashtra and vibrant exports to the U.S., Europe, and Africa, it has ambitions to introduce basmati rice to kitchens worldwide. In western India, Kelkar Canning in Maharashtra converts highly sought-after Ratnagiri Alphonso mangoes to produce canned pulp, puree, and jam. This factory now manufactures Konkan food products and also pickles chili and lime at two tons per hour. Ruchi Soya Industries Ltd, a top exporter of soy meal extractions processes a quarter of India's soy crop and is also a player in the edible oil industry. In the first of many partnerships, it established a joint venture with Kagome, a Japanese tomato processing company, to introduce processed tomato products to the Indian market. This was followed by agreements with J-Oil Mills and Toyota Tsusho to process and produce "healthy" cooking oils and fats. Last year, Ruchi Soya released Sunrich, its own brand of sunflower oil. American Players Three major agricultural multinationals, ADM, Bunge, and Cargill, process foods in India. Illinois-based Archer Daniels Midland acquired Madhur Agro, Geepee Agri Pvt. Ltd., and Tinna Oils Ltd., expanding Indian oilseed processing capabilities. In India, ADM primarily processes oil seeds including soybean, rapeseed (such as canola), mustard, sunflower, and cotton into crude oils, which is refined into

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GROWTH PATH edible oils and sold under Health Fit and Parampara brands. Missouri-based Bunge expanded distribution reach and increased manufacturing capabilities of Bunge India Pvt. Ltd. through its acquisition of Amrit Banaspati. In addition to its oilseed processing and refining plants, Bunge brands include Merrigold and Gagan.

Based in Minnesota, Cargill acquired the Leonardo olive oil brand from Dalmia Continental Pvt. Ltd. By October this year, Cargill will have an operational corn milling plant near Bangalore to produce glucose, thickeners, and other sweetening ingredients. Cargill India Pvt. Ltd. processes, refines, and markets vegetable oils, fats, and blends, crushing soybean and rapeseed in western and central India before selling them under the Sweekar, Gemini, and Nature Fresh brands, in addition to Leonardo. Currently, India largest processed food exports include mango pulp, dried and preserved vegetables, lentils, and rice. While export-oriented, India also imports foods such as vegetable and fruit juices, preserved fruits, cereals, dried vegetables, and palm oil. Future Growth The most promising food processing sectors today are grain milling and grain-based products, tomato paste, edible oils, and dried and preserved fruits. India's Department of Industrial Policy and Promotion estimates that

there have been $6 billion in foreign investments in India's food processing sector during the last 15 years. The growing number of foreign and domestic investors is due to strong government support. The government allows 100 percentFDI and has offered numerous fiscal incentives such as tax exemptions and reductions. For example, businesses with cold chain facilities or storage warehouses are granted 100 percent exemption from income taxes. Shifts in consumer behavior also explain the increased investment. Urbanization has led to an influx in nuclear families. This has resulted in a younger population, a larger number of working women, and increased awareness about health. Families are adjusting to changing food consumption patterns with preference for quality convenient foods, while being receptive to foreign flavors and brands. While the food processing sector is projected to reach sales of $64 billion in 2018, it is still underdeveloped with only 35 percent of total produce processed and the majority of the sector unorganized. Last year, India lost approximately 40 percent of fruit and vegetable produce due to inadequate storage and infrastructure. Backed by government and consumer support, the expanding market is increasingly appealing to investors. The food processing industry, as the sunrise sector in India, will become even more recognized for the potential opportunities it has to offer.


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TAKEOVER

Is Mondelez, maker of Oreos & Cadbury, a possible takeover target in Food Industry?

By Michael J De La Merced and Alexandra Stevenson

B

y putting $5.5 billion into Mondelez International, a hedge fund billionaire is wagering that the company, which makes Oreos, Cadbury chocolates and Trident gum, could be prodded into selling itself. That would make it only one of many possible takeover targets in the food industry.

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The emergence of William A Ackman and his Pershing Square Capital Management as a major investor in Mondelez highlights the widespread belief that opportunities for deals abound in the food sector. Although Pershing Square's regulatory filing Thursday disclosing its 7.5 percent stake does not elaborate on the hedge fund's investment thesis, a person briefed

on the move has said that it believes Mondelez must cut costs, or consider a sale. Ackman is said to like the aggressive cost-cutting measures announced by the company's chief executive, Irene Rosenfeld, last year, according to another person familiar with Ackman's thinking. The cuts followed months of pressure


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from another activist investor, Nelson Peltz, who had built a stake of more than $1 billion in the company and suggested that Mondelez merge with PepsiCo's Frito-Lay snack business. He later dropped the campaign and joined the Mondelez board. Analysts said Thursday that with Mondelez having already made headway in improving its operations - "we think many of the low-hanging Oreos already have been plucked," Ken Goldman of JPMorgan Chase wrote in a research note - Ackman's play must be pushing for a sale. That would fit into the economic forces bearing down on the packaged foods and snacks company. As a shift in consumer preference for more healthful foods bites into sales, traditional manufacturers are under pressure to improve their performance and cut costs. Upstarts like Chobani, the popular maker of Greek yogurt, have taken meaningful market share from traditional brands like Yoplait. Moreover, while a number of big manufacturers abound, much of the business is still made up of smaller manufacturers, many of which are owned by families or foundations, said Alexia Howard, an analyst with Sanford C. Bernstein. "This is still the most fragmented staples sector in the developed world," Howard said in a telephone interview. Ackman and his team see value in the vast array of brands in the Mondelez stable including Ritz Crackers, Peek Freans and Chiclets, according to someone briefed on Pershing Square's investment but not authorized to speak publicly. One natural defense would be for manufacturers to combine, improving their ability to shed production, marketing

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TAKEOVER and delivery expenses. Getting bigger would also give those companies more negotiating leverage with retailers, helping their efforts to gain more space, and greater prominence, on supermarket shelves.

Mondelez has participated in that deal-making drive in a way, carving out its coffee business and merging it with D.E Master Blenders 1753 last year to create a hot beverages powerhouse. Still more potential targets abound. Besides Mondelez, one possible takeover candidate is General Mills, whose products include Cheerios cereal, Betty Crocker cake mix and Haagen-Dazs ice cream. Other companies that may be in acquirers' sights include Kellogg and Campbell Soup, Howard said. Among investors, however, hopes for mergers were muted Thursday. Shares of Mondelez and Campbell Soup climbed about 1 percent, while shares of General Mills and Kellogg rose just slightly. Still, the Kraft Heinz Co. appears ready to be one of the main consolidators in the industry. The food giant was assembled by 3G Capital, the Brazilian-American investment firm that has made a fortune turning food and drink companies into acquisition machines. In a twist, Ackman owns a 19 percent stake in Restaurant Brands International, a 3G company that owns Burger King and Tim Hortons. The 3G playbook has wavered little over the years but proved enormously successful. It helped transform a collection of small breweries into Anheuser-Busch InBev. It also combined Burger King with Tim Hortons, a staple of the Canadian coffee-and-doughnut landscape. In March, the firm used Heinz - which

it bought two years ago with help from Warren E. Buffett - to buy Kraft, creating a colossus of packaged foods. Around the same time, Ackman set out build his $5.5 billion stake in Mondelez. "We are uncertain whether in the near term, 3G would be willing to add another massive integration to the current one (down the road, we think more deals for KHC are likely), given added execution risk," Goldman, the JPMorgan analyst, wrote in a research note Thursday, citing Kraft Heinz's stock ticker. But given its heritage, more acquisitions appear likely, Howard of Sanford Bernstein said. Nevertheless, Ackman may have to wait awhile for a sale of Mondelez. Kraft Heinz only recently closed the merger that gave it life, and digesting that combination is likely to take at least a year. Another possible buyer, PepsiCo, with its Frito-Lay division, has shown no particular leaning toward making a huge acquisition to bolster the snacks business. "One should never say never, but there have been strong indications that PEP may not be a willing buyer," Goldman wrote in his research note, referring to Pepsi's stock ticker. Mondelez could do well on its own, too, say people familiar with Ackman's thinking. That gives Mondelez time to show further improvement in its results - "get its socks up," as Howard put it before facing a reckoning. "With the breathing room that Mondelez has, it faces a choice," Howard said. Source: ET


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Moving Towards

Sustainability –

by Eating Less Meat By Colin Todhunter

T

he amount of meat humans eat is immense. In 1965, 10 billion livestock animals were slaughtered each year. In 2012, that number was 55 billion. More chickens are killed in the US every year than there are people in the world, and there are one billion cattle alive, weighing twice as much as the human population. All that livestock needs land, which places pressure on wildlife habitat and forest. Livestock is the world’s largest

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land user. Grazing occupies 26 per cent of the earth’s ice-free terrestrial surface, and feed crop production uses about one third of all arable land. Factor in that meat production requires staggering amounts of land, water, and energy compared to plant foods, and it’s not surprising that a 2010 UN report explained that western-type dietary preferences for meat would be unsustainable in future, given that

the expected rise in world population. Demand for meat is expected to double by 2050. Meat consumption is already steadily rising in countries such as China, which once followed more sustainable, vegetable-based diets. A person existing mainly on animal protein requires ten times more land to provide adequate food than someone living on vegetable sources of protein. Far more energy is put into animals per unit


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FOOD FOR THOUGHT

Panel of Sustainable Resource Management declared: “Impacts from agriculture are expected to increase substantially due to population growth and increasing consumption of animal products… A substantial reduction of impacts would only be possible with a substantial worldwide diet change, away from animal products.” According to the United Nations Population Fund, “Each US citizen consumes an average of 260 pounds of meat per year, the world’s highest rate. That is about 1.5 times the industrial world average, three times the East Asian average, and 40 times the average in Bangladesh.” of food than for any plant crop because cattle consume 16 times as much grain as they produce as meat: it takes 16 pounds of grain to make one pound of beef. Animal farms use nearly 40 per cent of the world’s total grain production. In the US, nearly 70 per cent of grain production is fed to livestock. If humans continue to eat more and more meat, it means we are going to place far more strain on land and water use and are also going to manufacture much more chemical fertilisers and pesticides. We will thus be creating far more pollution and greenhouse gases. Modern farming (both meat and nonmeat production) is heavily dependent on chemicals, which leads to the emission of the major greenhouses gases: carbon dioxide from the use of fossil fuels for machinery and to produce the chemicals needed, nitrogen oxide (300 times more potent than carbon dioxide) from the use of chemical fertilisers and methane (animal flatulence) from factory farming. Livestock generally contribute to about 9 per cent of total human related carbon dioxide emissions, 37 per cent of methane emissions and 65 per cent of nitrous oxide emissions. This includes carbon dioxide emission from deforestation in Central and South America, attributed to livestock production.

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Consider that a gallon of gasoline is used to produce a mere pound of grain-fed beef, and you begin to appreciate that meat production is a very fossil fuel, resource-intensive industry. According to the Food and Agriculture Organisation, “Ranching-induced deforestation is one of the main causes of loss of some unique plant and animal species in the tropical rainforests of Central and South America as well as carbon release in the atmosphere.” A 2010 report from the United Nations Environment Programme’s International

Scientists at Cornell University have advised that the US could feed 800 million people with the grain that livestock eat. Water-Intensive Meat Meat production also places a great strain on fresh water, which is likely to become an increasingly scarce resource in the coming years. John Anthony Allan, professor at the University of London’s School of Oriental and African Studies, argues that the average meat-eating US citizen consumes five cubic meters of water compared to half of that which vegetarians consume. But not all meat is equally water-intensive.


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FOOD FOR THOUGHT to grow more than twice as large in less than half the time. Chickens once had a life expectancy of 15 to 20 years, but the modern broiler is typically killed at around six weeks. Their daily growth rate has increased roughly by 400 per cent. All male layers in the US, comprising more than 250 million chicks a year, are destroyed. Most are destroyed by being sucked through a series of pipes onto an electrified plate. Some are tossed into large plastic containers. The weak are trampled to the bottom, where they suffocate slowly. The strong suffocate slowly at the top. Others are also sent fully conscious through macerators.

He says that beef requires 15,500 litres of water per kilogram compared to chicken, which needs 3,900 litres per kilogram. So, at the very least, consumers could think about reducing their beef consumption since it requires the most unsustainable water footprint. In her book, Stolen Harvests, environmentalist Vandana Shiva says that for every pound of red meat, poultry, eggs and milk produced, farm fields lose about five pounds of irreplaceable top soil. She also states that the water necessary for meat breeding comes to about 190 gallons per animal per day, or ten times what a normal Indian family is supposed to use in one day, if it gets water at all. The great Ogallala aquifer in the US is the largest body of fresh water on earth. The water in it is left from the melted glaciers of the last Ice Age. It is not replenished from rainfall. Author John Robbins notes that more than 13 trillion gallons of water are taken from the aquifer every year. More water is withdrawn from the Ogallala aquifer every year for beef production than is used to grow all the fruits and vegetables in the entire US. Robbins states that it’s only a matter of time before most of the wells in Kansas, Nebraska, Oklahoma, Colorado and New Mexico go dry, and portions of these states become scarcely habitable for human beings.

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This is a salutary reminder of what other countries may face in future if their meat consumption increases dramatically. Animal Welfare Of course, other arguments against eating meat or using animal products have been around for a long time, well before global warming and climate change appeared on the scene. Various religious and philosophical traditions believe that humans should not kill, maim, torture or exploit fellow beings for food or other purposes. But kill, maim, torture and exploit we do. Take chickens as just one example from the many that we could take. For the past half century, there have been two kinds of chickens — broilers and layers. They have different bodies, engineered for different ‘functions.’ Layers make eggs and broilers make flesh. Over the past 50 years, they have been engineered

In many respects, thanks to its various traditions, India has a definite head start when it comes to not eating meat. This is just as well considering 17 per cent of the global population live here on a mere two to three per cent of the planet’s land, and the country is already facing water shortage issues and dwindling wildlife habitat. According to a 2006 State of the Nation Survey, 31 per cent of Indians are vegetarians, while another nine per cent consumes eggs. India also has a system of marking edible products made from only vegetarian (non-animal) ingredients, with a green dot in a green square. Chemical-industrial agriculture in general But let’s not get too carried away and place all our focus on meat production. The heavy dependence on fossil energy suggests that the modern food system, whether meat-based or plant-based, is generally bad.


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FOOD FOR THOUGHT the manufacture of fertilisers and other agricultural chemicals that negatively impact the environment. The answer is to return to basics by encouraging biodiverse, organic, local food systems. Making the required shift away from modern farming practices could be a lot easier said than done, however. Huge, politically connected and unscrupulous agribusiness concerns involved in fertiliser, pesticide and seed manufacturing (and let’s not forget the genetically modified sector) have a lot invested in maintaining the current, highly profitable system.

During the last century, a radical shift took place in the world’s food system. We went from a sustainably based, localised food production to a fossil-fuel addicted industrialised system. Indeed, agriculture has changed more in the past two generations than it did in the previous 12,000 years, and almost every aspect of the modern industrial agriculture creates greenhouse gas emissions. Author James E McWilliams suggests that many people recognise this impact and have turned to meat, dairy and eggs from non-industrial sources. The last decade has seen a surge in grass-fed, free-range, cage-free options. These alternatives typically come from small organic farms which practice more humane methods of production and at least appear to be more in harmony with nature. While Vandana Shiva notes the hugely negative environmental impact of modern meat production, she elucidates further by arguing that it is modern agricultural practices per se that must change. In this respect, the issue goes far beyond meat consumption and selecting a happysmiley veggie meal at McDonalds or from the supermarket fast-food freezer in the belief that we are doing ourselves and the planet some good. In India, people might like to consider that the next time they eat a meal of rice and vegetables, they could be taking in much more the amount of pesticides that an average North American person

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would consume for a similar meal. That’s because India is one of the world’s largest users of pesticides. Lady’s finger, cabbage, tomato and cauliflower in particular may contain dangerously high levels and fruits and vegetables are sprayed and tampered with to ripen and make them more colourful. Research by the School of Natural Sciences and Engineering at the National Institute of Advanced Studies in Bangalore reported in 2008 that many crops for export had been rejected internationally due to high pesticide residues. Shiva argues that this type of intensive chemical-industrial agriculture, with its reliance on vast amounts of fresh water, fertilisers, pesticides and the like, is destroying biodiversity and contributing towards climate change, not just in India but worldwide. It has been at a terrible cost to the environment and is ultimately unsustainable. Modern industrial farms rely on fossil fuels, from powering machinery to petroleum-based chemicals used to create artificial soil fertility, protect against pests and stave off weeds. It is this use of fossil fuels on farms and

But, in finishing, let us end where we began — with meat. Author James E McWilliams raises the all-important ethical issue by saying that it’s not how we produce animal products that ultimately matters, it’s whether we produce them at all. The dilemma he raises leads to some deep seated questions about how we as individuals personally regard our mass slaughter and wholesale exploitation of the living creatures we share this planet with. Even if our consciences can continue to live with this, the evidence is that, in the long run, the ecology of the planet that has sustained us thus far certainly can’t. Colin Todhunter is an extensively published independent writer and former social policy researcher based in the UK and India.


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AGRI BUSINESS

Agro-export:

The case of India I

ndia's export potentialities of agricultural products remain largely untapped. The country ranks second in fruits and vegetables production in the world, after China. According to the National Horticulture Database published by National Horticulture Board, India produced 81.285 million metric tonnes of fruits and 162.19 million metric tonnes of vegetables during 2012-2013. The area under cultivation of fruits stood at 6.98 million hectares while vegetables were cultivated on 9.21 million hectares. India is the largest producer of ginger and okra amongst vegetables and ranks second in production of potatoes, onions, cauliflowers, aubergines, cabbages, etc. Amongst fruits, the country ranks first in production of bananas (22.04 per cent), papayas (40.74 per cent), and mangoes (32.65 per cent).

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B. K. Mukhopadhyay, Kolkata

The National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) has revealed that the vast production base offers India tremendous

opportunities for export. During 20142015, India exported fruits and vegetables worth Rs.74.7414 billion which comprised of fruits worth Rs.27.7132


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billion and vegetables worth Rs.47.0278 billion. Mangoes, walnuts, grapes, bananas and pomegranates account for larger portion of fruits exported from the country while onions, okra, bitter gourd, green chillies, mushrooms and potatoes contribute largely to the vegetable export basket. Developing countries increased their share in manufacturing exports during the 1990s, but saw little expansion in agricultural exports - barely maintaining their share of around 36 per cent after losing market shares during the 1980s. In the 1990s, all of their gains in agriculture came from expansion of their exports to other developing countries. Until now, a major share of India's agro-exports in the global trade in agro-commodities hovers around 1.0 per cent. More than 48 per cent of the world's agricultural trade is conducted between industrial countries about the same share as in 1980-1981. The Confederation of Indian Industry (CII) and McKinsey & Company have recently issued a joint report which confirms that farm products could change the agriculture landscape of India - mangoes, banana, potato, soybean and poultry are the five main farm products that could form the bedrock of rejuvenation in the landscape of India's agriculture and allied activities in the next two decades. This can be created by building a strong brand for these products in the international markets, reducing wastage by almost half and doubling the yields per hectare. Major problems need be tackled

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at a quicker pace to ensure that the future prospects become brighter. It calls for ensuring that the kinds and varieties of fruits and vegetables are suitable in all respects for processing and are available in commercial quantities at reasonable prices to the processing industry. Moreover, the lack of a proper marketing strategy geared to meeting the raw material requirement of processing units and ensuring a sustainable export market for the processed products has been keenly experienced. Due to poor infrastructure, the horticultural industry has failed to register commendable growth in the economy of India. Improper system of

AGRI BUSINESS transportation, road networks, and freight or cargo facilities, cold storage facilities, etc., coupled with inadequate post-harvest management affect the produce and products. Poor and inconsistent quality of processed products and inadequate export promotions are hindering the growth prospects. It is the residual rather than the fresh produce that is often taken up for processing, which has a bearing on quality. Fruits and vegetables are generally constrained by poor price support, credit support and delivery system. Inadequate support in the forms of water supply or research and development are also major constraints. The quality of packaging also leaves much to be desired inasmuch as importing countries demand specific packaging for each produce and the use of bio-degradable materials results in high cost of packaging. Global market for these products is quite big and there is an immense scope for the LDCs (least developed countries) if their agricultural resources are systematically tapped. Dr B. K. Mukhopadhyay, a management economist, is attached to West Bengal State University.


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NEW TREND

Coconut water: all it's cracked up to be?

C

oconut water has long been a popular drink in the tropics, especially in India, South-East Asia, Pacific Islands such as Hawaii and the Caribbean, where it is available fresh, canned, or bottled. It's a natural isotonic beverage with the same level of electrolytic balance as we have in our blood. The water of tender coconut, technically the liquid endosperm, is the most nutritious wholesome beverage that nature has provided for the people of the tropics to fight the sultry heat. It has caloric value of 17.4 per 100 gm. On a percentage basis coconut water is 94.5 % water. The rest

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would contain: Protein 0.15 to 0.55 %, fat 0.1%, ash 0.46%, carbohydrates 4.4%. It keeps the body cool and fights intestinal worms. It is an excellent tonic for the old and sick and in the treatment of kidney and urethral stones. The major chemical constituents of coconut water are sugars and minerals and minor ones are fat and nitrogenous substances. It contains glucose and fructose and many important minerals such as phosphorous, calcium, potassium, iron, sodium and vitamin B and C. Tender coconut water is not merely a thirst quenching drink but a mineral drink that cures most of human diseases and helps one regain lost health.

Part of tradition It has numerous medicinal properties have been described elaborately in our Ayurvedic literature and no other natural drink has such diverse applications as water of tender coconut. "It is unctuous, sweet, increasing semen, promoting digestion and clearing the urinary path," says Ayurveda on tender coconut water. The use of tender coconut water as intravenous fluid for human patients has also been reported from many countries. Tender coconut water has been given intravenously to cholera epidemic victims in Sri Lanka, Indonesia, Bangladesh and India. Tender coconut water has been generally


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NEW TREND

of B group. The concentration of ascorbic acid ranges from 2.2 to 3.7 mg per ml, which gradually diminishes as the kernel surrounding the water begins to harden. Coconut water contains high levels of lauric acid which is what is used by the body to make monolaurin - a disease fighting fatty acid derivative. Lauric acid has anti-fungal, anti-bacterial and antiviral properties which protect the body against various infections and boosts the immune system.

offered to patients with diarrhea in many tropic regions to replace fluid loss from the gastrointestinal tract and reduce the need for intravenous therapy. Tender coconut water has been used successfully in the cases of malnutrition and infant gastric disorders. Tender coconut water is known as the richest source of electrolytes, and hence is greatly recommended for people who are suffering from any illness. It also contains high amounts of chlorides, potassium, and magnesium and moderate amounts of sugar, sodium and protein. Potassium from drinking coconut water can help to regulate blood pressure and heart function. It is also an excellent source of dietary fibre, manganese, calcium, riboflavin and vitamin C. Application on the body prevents prickly heat and summer boils and helps to remove rashes caused by small pox, chicken pox, measles, etc. It is also effective in the treatment of kidney and urethral stones. Contents of coconut water Sugars in the forms of glucose and fructose form an important constituent of the tender coconut water. The concentration of sugars in the nut water steadily increases from about 1.5 per cent to about 5 - 5.5 per cent in the early months of maturation and then slowly falls reaching about 2 per cent at the stage of the full maturity of the nut. In the early stages of maturity sugars are in the form of glucose and fructose (reducing sugars) and sucrose (non-reducing sugar) appears

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only in later stages which increases with the maturity while the reducing sugars fall. In the fully mature nut approximately 90 per cent of the total sugar is sucrose. Tender coconut water contains most of the minerals such as potassium, sodium, calcium, phosphorous, iron, and copper, sulphur and chlorides. Tender coconut water being rich in potassium and other minerals plays a major role to increase the urinary output. Coconut water contains small amounts of protein. The percentage of arginine, alanine, cysteine and serene in the protein of tender coconut water is higher than those in cow's milk. Tender coconut water contains both ascorbic acid and vitamins

Indian market scenario Tender coconut water has today become the heartthrob for millions of Indians. This wholesome, nutritious drink has suddenly turned leader in the keenly competitive soft drink market too. Even before the ongoing `cola' storm and the shocking revelations of Centre for Science and Environment that upset the soft drink market, tender coconut water was the most preferred drink of the city folks. Nearly 10 years back there were only few outlets to sell this Nature's own drink in Kochi. And they primarily looked towards the sick as potential customers, for it was often prescribed as a nutritional drink. The efforts of the Coconut Development Board, which set up around 20 `ElaneerPandals' in Kochi


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NEW TREND with crushing inevitability as a celebrityendorsed natural sports drink, sales are growing fast: Vita Coco, which accounts for more than 9 of every 10 servings sold in the UK, is reporting sales up 122% year on year. Then you've got Coke's ZICO and smaller brands like Cracker Coco, Grace, Tiana, and Biona. Vita Coco, ZICO, Tiana and Biona use 100% coconut water, Grace uses 85% coconut water plus ordinary water, and some brands, such as Cracker Coco, use coconut water in a mixed fruit juice. You can even sup directly from the coconut, thanks to start-ups like Cocoface, which sells fresh young coconuts from Thailand at markets and online.

city to promote this drink paid dividends. Now there are around 100 outlets, spread all over the city, selling this very popular drink. Tender coconut water is available in every nook and corner of the city. It is sold not just at the exclusive outlets, by footpath vendors, but almost every fruit stall, cool drink parlor, restaurant and even in star hotels. In tune with the changing times, `the product' has also undergone many changes. It is now available in tetra packs and cans, but is still able to retain its medicinal and nutritional values. Artificially packed tender coconut water is fast gaining popularity in all the metros. There are five firms who market this on a large scale. Competition leads to innovation and this is true in the case of this soft drink also. Packaged fruit juice and beverage maker Dabur India ventured into 100 percent natural Tender Coconut Water under the Real Activ brand. Demand for Coconut water is growing by the day as more and more consumers are beginning to realize the endless benefits of natural coconut water. Dabur has always been known for offering natural, healthy products that provide wholesome nutrition. Australia-based Flavor and Life (FAL) Food and Beverages which is also a part of Saudi Arabia's FAL Holdings, is going

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to enter the Indian market with its flagship brand of packaged coconut water 'Coco Joy', and natural juices under 'Juiced Up'. FAL currently has operations in Australia, China, US and Malaysia and the $35-million company is also introducing the entire coconut range under 'Coco Joy', including coconut oil and coconut milk. Global scenario The Indians have been drinking it for years. So have people in Brazil, South East Asia, the Caribbean and anywhere else that the coconut palm grows. Now coconut water has been liberated from its natural container and packaged for sale in the rest of the world. America's been quaffing it since 2004. Britain has come late to the party but here, marketed

Coconut water is probably most popular as a drink. Fans prefer it to sports drinks, pointing to its lack of refined sugars and other additives, and it's also gaining popularity as an alternative to juices and smoothies. Coconut water is already a thriving market in the UK and US, but demand for the packaged drink is now spilling out into other countries such as Japan and Canada. The drink has gained popularity in recent years because of its purported health benefits, which include providing high levels of potassium and other minerals while being low in fat and calories. Market


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According to research by Datamonitor Consumer, it is likely that UK consumption will near 25m litres this year. With popularity growing in Europe and beyond, it is estimated that global consumption will have reached 3.9bn litres by the end of this year. High growth in the sector is expected in China, India, Brazil and Japan, with the latter market estimated by Datamonitor to be worth $500m (£333m) by 2019. Yet there is a widespread reluctance to take the business to emerging markets, wary of what are seen as flighty or skeptical consumers. In some of the more tropical locations, where street vendors will slice open a fresh coconut on the street, there is also a wariness to compete. But this is starting to change and consumers see the benefits of packaged water over fresh water. Producers investing in markets like India and Brazil should be sure to convey the convenience and hygiene benefits of choosing a packaged drink in order to drive success. Indeed, packaged product is already starting to gain ground in Brazil, which indicates that other developing countries with access to fresh coconuts could be persuaded to make the transition. Export market As world-wide consumption of all things coconut has jumped over the last decade, Asian countries like India, Indonesia and Philippines have seen their exports of the commodity explode. At one point last year, exports from the Philippines, the world’s second biggest coconut producer, had grown over 400% from the year

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before. Between 2009 and 2012, exports of coconut oil from Asia have grown about 3% a year, according to the Asian Pacific Coconut Community, an Indonesia-based organization that represents coconut growers. Now, coconut water and milk, used in drinks and health products, make up 30% of global coconut consumption, according to the UN. That growth could hit a wall if Asian countries don’t figure out a way to boost productivity. FAO representatives said that consumption for coconut products is growing more than 10% a year, but production in Asia is increasing by only around 2%. The problem? Most coconut

trees in Asia—where many of them were planted just after World War II— are over the age of 50 and losing their productivity, the FAO said. (Coconut palms are the most productive between the ages of 10 and 30.) Today, the average harvest in Asia is about 40 coconuts per tree annually, whereas younger trees can potentially yield between 75 and 150 coconuts, according to the agency. Falling coconut productivity matters not only for health nuts worried about their electrolytes. Millions of small farmers across South and Southeast Asia depend on the fruit. In the Philippines, the commodity contributes as much as 5%

NEW TREND

to the country’s GDP and is its largest agricultural export. In India, the coconut industry contributes an estimated 83 billion rupees ($1.3 billion) a year to the economy. Conclusion When coconut water broke into the market 10 years ago, it was billed as a miracle drink able to fight viruses, kidney disease and other ailments like osteoporosis. Global sales now reach $400 million a year, and many consumers believe that the beverage has a wide variety of health benefits. But they may be unaware that the drink’s marketers have sharply scaled back their claims. These days, coconut water’s big rival may be plain old water. How do they compare? Scientists are still wrestling with the question, and while their findings vary, water is starting to look just fine for most people. A study in the Journal of the International Society of Sports Nutrition found that neither coconut water nor sports drinks were better than water in hydrating young men after hourlong

workouts. Coconut water taps into a deep consumer vein - It is not seen as a ‘manufactured’ concoction, but rather the issue of Mother Earth. And it seems poised to become just the first in a wave of natural waters; already for sale are bottled waters from maple and birch trees, barley, cactus and artichokes, with their own exuberant promotions. Meanwhile, coconut water flows on. Best-selling cookbooks are using it as an additive in soups and smoothies. And it’s not just for drinking: It’s also being used in soap and a body wash that use coconut water as a hydrating agent — and as a powerful image on the package.


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IPR

INTELLECTUAL PROPERTY RIGHTS (IPR) BY BASMA HUSSAIN

IN FOO INDUSTRY

Every food sector business from start up to multinational creates intellectual property. These assets can be extremely valuable, particularly when a company becomes successful. If any form of intellectual property is not protected at the beginning, its value can be lost, stolen or diminished. Intellectual property protection in the food sector covers everything from the production of ingredients and creation of recipes to the labeling, marketing and branding of the finished product. Types of intellectual property relevant to the food industry include patents, trademarks, copyright, trade secrets and design rights. But In India trade secret is still a distant

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work for many local food companies. Unfortunately only very few of the companies are aware of them as they ignorant about the rights they can havein their businesses. This is due to the lack of exposures and understanding of vital aspects of business. In other words, very often the situation is like, penny-wise pound-foolish. Food industry is taking time to understand that knowledge is power. Slowly, a growing number of successful enterprises realize that valuable information or knowledge is what gives them an edge on the competition. Original confidential information, knowledge and expertise provide a unique competitive quality that

It is a competitive world and a food processing company needs to protect many things that are intangible and therefore harder to protect than tangible assets. No single regime of law, no single type of legal protection, can give a company all the protection it needs for its intangible assets except the Intellectual Property Right. Oils and Food Journal explores the importance of all types of protection taken that come under IPR and how a company can protect its intellectual property against its competitors.


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helps businesses attract customers. The biggest issue is that for many entrepreneurs in India, much valuable information appears trivial and therefore may not be sufficiently appreciated. Many enterprises are unaware that secret information is considered intellectual property in the commercial world – frequently referred to as trade secrets – and often protected by legislation. Keeping trade secret under wrap is a challenge. Companies also face a perpetual struggle between developing lasting relationships with customers, stakeholders and suppliers which entails revealing more and more about their products, processes and systems and the need to safeguard valuable trade secrets, key to their continued success. Finding the right balance requires careful consideration. THE IMPORTANT INTELLECTUAL PROPERTY RIGHT Trade Secret Broadly speaking, any confidential commercial information which gives a competitive edge may be considered as a trade secret. Within the food industry this includes recipes, formulae, manufacturing processes and, potentially, sales and distribution methods. Trade secrets are protected without registration and thus enjoy protection for an unlimited period of time. It may be worthwhile for food enterprises to firstly decide if their secret meets

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the patentability criteria and if so, would it be better protected by a patent. Secondly, the secret must be kept as confidential as possible with a limited number of people knowing. It is useful set in place confidentiality agreements which must always be signed before disclosing such information with third parties, business partners or employees. Trade secrets are advantageous in that there is no waiting time for protection, no registration cost and no limited time of protection. However, trade secrets do not prevent competitors from dissecting an innovative product to discover and commercially use the secret. The level of trade secret protection varies from country to country, however, despite there being no specific legislation in place for trade secrets in Ireland, protection is still effective How are Trade Secrets protected by food companies? What do you think of recipes of Coca Cola, Pan Parag, Pepsi cola, scented tobacco, perfumes, flavor recipes, etc.? Contrary to patents, trade secrets are protected without registration, that is, trade secrets are protected without any procedural formalities. Consequently, a trade secret can be protected for an unlimited period of time. For these reasons, the protection of trade secrets may appear to be particularly attractive for food industries. There are, however, some conditions for the information to be considered a

IPR

trade secret. WTO agreement on TRIPS also recognizes the concept of trade secret. Compliance with such conditions may turn out to be more difficult and costly than it would appear at first glance. While these conditions vary from country to country, some general standards exist which are referred to in Art. 39 of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement): • The information must be secret (i.e. it is not generally known among, or readily accessible to, circles that normally deal with the kind of information in question). • It must have commercial value because it is a secret. • It must have been subject to reasonable steps by the rightful holder of the information to keep it secret (e.g., through confidentiality agreements). If a food company develops a manufacturing process of its products that allows it to produce its goods in a more cost-effective manner with a specific taste and appearance. Such a process provides the enterprise a competitive edge over its competitors. The enterprise in question may therefore value its knowhow as a trade secret and would not want competitors to learn about it. It makes sure that only a limited number of people know the secret, and those who know it are made well aware that it is confidential. When dealing with third parties or licensing its know-how, the enterprise signs confidentiality agreements to ensure that all parties know that the information


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is a secret. In such circumstances, the misappropriation of the information by a competitor or by any third party would be considered a violation of the enterprise's trade secrets. To prove the point that it is a breach of confidential becomes challenging. Advantage of trade secret • No time limit: Trade secret protection has the advantage of not being limited in time (patents last in general for up to 20 years). It may therefore continue indefinitely as long as the secret is not revealed to the public. • No registration cost: Trade secrets involve no registration costs (though there may be high costs related to keeping the information confidential). • No waiting time: Trade secrets have immediate effect. • No disclosures required: Trade secret protection does not require compliance with formalities such as disclosure of the information to a Government authority. • There are, however, some concrete disadvantages of protecting confidential business information as a trade secret, especially when the information meets the criteria for patentability •If the secret is embodied in an innovative product, others may be able to inspect it, dissect it and analyze it (i.e. "reverse engineer" it) and discover the secret and be thereafter entitled to use it. Trade secret protection of an invention in fact

does not provide the exclusive right to exclude third parties from making commercial use of it. Only patents and utility models can provide this type of protection. • Once the secret is made public, anyone may have access to it and use it at will. • A trade secret is more difficult to enforce than a patent. The level of protection granted to trade secrets varies significantly from country to country, but is generally considered weak, particularly when compared with the protection granted by a patent. • A trade secret may be patented by someone else who developed the relevant information by legitimate means. Patents The concept of food patenting is a relatively new phenomenon. Patents cover a broad range of areas within the food sector; everything from the composition of the food itself, to the actual process of making the food. It is possible to patent new ingredients, new products, packaging, processing methods and novel applications. Innovation in food technology often results in new ingredients and products which may be patented. A food business should seek to register a patent in circumstances where, for example, the packaging features provide storage advantages, or improves delivery to the consumer in a novel fashion and involves an inventive step in the process. Likewise, patents are useful if the production method for creating food is unique as this creates difficulties for competitors trying to imitate your product. Currently, patents are becoming more and more common to protect biotechnology innovation, particularly in the field of agricultural biotechnology research and

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IPR

development. Patents in this field ensure inventions and ideas are protected long term so the original inventor has the opportunity to recoup the initial financial investments. Trademarks Trademarks are an integral part of any food company’s branding strategy. Effective branding strategies ensure the product is distinctive and valued, easily recognizable to consumers and help in achieving and sustaining a competitive market share. The moment a new good or service is created it is worthwhile thinking of distinctive elements surrounding the brand which can avail of trademark protection. The more distinctive the name or logo is, the easier it is for it to obtain trademark protection. Trademarks can include words, logos, shapes (of the food product itself or its packaging), slogans, specific colours and sounds. The trademark cannot be a direct description of the good itself nor can they contain generic names (for example, “carrots” for carrots). Examples of successful food related trademarks include the distinctive turquoise color on Heinz baked bins tins, the Coca Cola logo and bottle shape and the Toblerone bar shape. Copyright The purpose of a copyright is to protect creative work, granting authors exclusive privilege to produce, create or display such work. Copyright does not require


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I n d i a ’s O n l y M o n t h l y f o r A g r o & F o o d P r o c e s s i n g & A l l i e d S e g m e n t s

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registration in Europe (although it does in the US). Here, it subsists on the creation of an artistic work (which is widely defined in the Copyright and Related Rights Act). Where food is concerned, copyright is a complex area as sometimes a list of ingredients or a specific method of cooking may not be enough to obtain copyright protection. However, a cook book containing recipes, for example, will be protected by copyright laws. In the right circumstances, copyright protection can cover certain ingredients and their quantities, the idea of the product and the style, method or technique of preparation. Sanjeev Kapoor Cookery School, for example, will own the copyright over any recipes that are handed out at demonstrations. They most likely have assigned the copyright in their books to their publisher, as part of a book deal. These examples show how important it is to protect IP, and how valuable it can be. Design Rights Design rights give protection to existing designs such as lines, shapes, textures or materials. It is often used with food stuffs and covers the making, using, putting on to the market, exporting and importing of the product. CASE STUDY:UNDERSTANDING INTELLECTUAL PROPERTY LAW THROUGH COCA COLA Copyright

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law.

IPR

Coca-Cola owns copyright in the design of its bottles, the design of its logos, its advertising, and generally anything it creates that can be considered an original work requiring creative effort. For example, the famous CocaCola logo and script design is an original artistic creation that is protected by copyright law. In other words, the right to copy the logos and script design is limited by copyright

Defenses to copyright infringement include allowing a work to be copied for the purposes of private research or news reporting. If a newspaper is doing a story on Coca-Cola, it is allowed to display the Coca-Cola logo if it is part of the story. Trade-mark Trade-mark protection gives CocaCola the right to stop competitors from passing off their goods and services as Coca-Cola’s, and to be compensated for any damage Coca-Cola may suffer as a result of this unfair competition. Trademark protection also protects consumers by prohibiting confusing trade-marks in the marketplace. The Coca-Cola Company holds registered trademarks in its logo and script design. Even the distinctive shape of the Coke bottle is trade-marked. These things are trade-marks because they are distinctive marks used by the company to identify its goods and

services as being uniquely Coca-Cola’s. To prove trade-mark violation, Coca-Cola would have to show that the competitor has actually used its trade-mark as a trade-mark. If a newspaper prints the name “Coca-Cola” in a news story, that is not a trade-mark violation. But if the name “Coca Cola” appears on a soft drink bottle then that is a trade-mark violation. The effect of this may be to confuse people into thinking they are getting a Coca-Cola product when they are not. Trade-mark violations occur only when the “distinguishing feature” of the original has been borrowed. The most famous example of this is in the case of CocaCola Co. v. Pepsi-Cola Co. where Coke sued Pepsi for violating its trade-mark. The courts ruled that “Cola” was simply a descriptive word identifying a type of beverage, and that the “distinguishing feature” of the Coca-Cola trade-mark was the word “Coca.” And because the distinguishing feature was not borrowed, there was no likelihood that the average person would get those trade-marks confused. Patents Like many companies, the Coca-Cola Company creates various inventions to assist with its business. Many of these are patented, even the ones that are not particularly unique, since an invention does not have to be totally unprecedented


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IPR will require you not to tell anyone outside that select circle about the formula.

to be patented; it just needs to have some element of novelty. For example, the Coca-Cola Company owns a patent on a method of making “barrier coated plastic containers.� Obviously no one has the exclusive right to make plastic containers, but Coca-Cola has the exclusive right to use the particular method of making those containers that they describe in their patent. Trade Secrets The formula for making Coca-Cola is a trade secret. The formula is extremely valuable to the company as a secret; it would be all but useless to the company if it were known to its competitors (since they would all start to copy it), it is known only to a select few people within the Coca-Cola company, and the company takes special precautions to make sure that the formula does not get out. In other words, it fulfills the essential criteria for a trade secret: The company takes special effort to keep it a secret, and that secrecy creates value. The original formula for making CocaCola was patented in 1893. But when the formula changed, the company did not choose to patent the formula again. The reason for this is simple: if Coca-Cola were to patent its formula, the formula would become known to others, and once the patent expired, anyone could use it. It

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is possible to copyright a formula, but that would also make it known to the public. And in any case, copyright would only protect the formula as a piece of literary expression; it would not protect the basic ideas that make the formula unique. By keeping the formula a secret, Coca-Cola can protect the formula and keep it to itself indefinitely. However, the downside of a trade secret is that once it is out, there is almost no legal protection; if the Coca-Cola formula were to be revealed, Coca-Cola could not stop other companies from using it, the way they could use the courts to stop other companies from using a patented method or its trademarks. It is up to Coca-Cola, then, to keep the secret from getting out, which they do through confidentiality agreements and other contracts. If you work for the CocaCola Company, and in the unlikely event that you are one of the select few people trusted with the formula for CocaCola, your contract

WHY PROTECT WITH IPR? Protecting your intellectual property is crucial in the current highly competitive business climate. Protection ultimately ensures that food businesses gain a substantial market share whilst developing products at your own leisure and without amounting competitive pressure. Each specific protection has the capacity to protect your product depending on the extent of protection needed and your future business vision. Protection operates at every stage in the food sector and is undoubtedly a necessity in guaranteeing the creator’s product remains unique, competitive, recognizable to consumers and profitable for many years. In order to stay competitive, a company needs to protect many things that are intangible and therefore harder to protect than tangible assets. No single regime of law, no single type of legal protection, can give a company all the protection it needs for its intangible assets. But with all four of these types of protection taken together, and properly used, a company can protect its intellectual property against its competitors.


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FOOD SAFETY

By Daniela Verhaeg, Marketing Manager, Mettler-Toledo Safeline X-ray

I

n today’s competitive global food market, safeguarding the reputation of a brand is of utmost importance. Contamination by foreign bodies, such as metal or glass shards, can be particularly damaging for food brands, triggering customer complaints and costly product recalls, ultimately harming the brand. At the same time though, in a globalised market and under pressure from rising production costs, it is becoming increasingly important for manufacturers to find ways not just to maximise the productivity of the production lines, but to future-proof them as well. To achieve all these goals, food manufacturers need to ensure they select the inspection systems best suited to the needs of their products, their production lines and their business. To do so, there are a number of factors that manufacturers need to take into account.

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No “one size fits all” Selecting a suitable product inspection technology can be daunting, given the large range of available systems. There may be no wide-reaching legislation which mandates manufacturers to install product inspection systems such as x-ray inspection, but they may have to prove in a legal context that they did their level best to identify and eliminate risks for the consumer. Faced with no definitive legislation, manufacturers need to comply with industry standards and codes of practice that have been advocated by several regulatory bodies, such as the Global Food Safety Initiative (GFSI) and Good Manufacturing Practice (GMP). Concerns include the emission of harmful x-rays, the Critical Control Point (CCP), which is the physical positioning of the x-ray machine and, last but not least, ensuring products are contaminant-free. In terms of radiation, x-ray inspection

Choosing the Right X-Ray

Solution


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combination of both. Vertical beams are ideal for the inspection of sealed packs, wet or dry free-flowing products as well as pumped products such as slurries, liquids and pastes. Whereas, horizontal beam systems are commonly used for the inspection of packaged products and mainly tall, rigid containers such as metal and composite cans, glass containers and doypacks. As such, Mettler-Toledo Safeline X-ray developed the X35 Series, which currently is one of the most advanced and flexible x-ray systems on the market tailored to inspect packaged food and pharmaceutical products. Integrating a unique detector, it uses five times less power than previous technologies, whilst sustaining outstanding contamination detection performance.

systems have to be built in conformity with the recommendations of the International Commission on Radiological Protection and other major global safety standards, such as the American Standard 1020.40 CFR, thereby guaranteeing a safe working environment for operators. Systems manufactured or sold in the European Union (EU) have to be fully Conformité Européenne (CE) certified, and comply with local rules and regulations. Beyond industrial standards and codes of practice, there are also retailer and consumer brand codes in practice that manufacturers have to adhere to in order to satisfy supplier agreements. An ever-increasing number of large retail chains are strongly advocating for manufacturers to integrate product inspection technologies, such as x-ray inspection systems, across the supply chain. In the food industry, effective contaminant detection poses a particular challenge,

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given the varying densities and different structures of different foods and a huge range of different types of packaging. X-ray inspection can overcome these challenges as it offers excellent detection for ferrous and non-ferrous metals, plus stainless steel, and is also highly efficient at detecting glass, stone, calcified bone, high-density plastics and rubber compounds. It is also proficient in inspecting foreign bodies in glass jars and bottles, metal cans and products in foil or metallised film packaging, such as doypacks. Whether the contaminants are within the body of the packaging or trapped in the lid, they can be detected by highly sensitive x-ray technologies. Different types of packaging and products imply the need for a broad range of x-ray systems with a choice of x-ray beams. However, there are systems available with single and multiple x-ray beams positioned vertically, horizontally or a

Today’s x-ray inspection systems are true multi-taskers: striving to meet manufacturers’ demands and requirements for efficient, speedy and secure in-line product inspection. Stateof-the art x-ray technologies are also capable of performing thorough in-line quality checks, embracing measuring mass, counting components, identifying missing or broken products, monitoring fill levels and inspecting seal integrity. This ensures that manufacturers not only protect the brand and product, but futureproof technology investment for new product ranges, and improve exportation opportunities through compliance with local and international safety guidelines. Proactive on productivity Catering to international consumer’s varied and varying tastes poses a challenge for manufacturers who have to continually develop new innovative products that will tantalise these tastes in an unseen way, while keeping production costs at bay. With global economies slowly climbing out of recession, manufacturers’ budgets are still limited, which continues to curb major capital investment decisions. However, despite financial restraints, manufacturers require product inspection systems to protect their brands as poor quality products can potentially damage their brand reputation with consumers and future business prospects. The quality


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FOOD SAFETY

component mass, seal integrity and packaging defects, all on single or multi-lane applications. Also, when the technology is equipped with a low power generator, the machine does not require additional cooling or air conditioning, thus reducing power consumption, energy costs and overall Total Cost of Ownership (TCO).

of products has to be controlled on the production line and incorporating x-ray inspection is one of the most effective ways to safeguard against potential issues. This raises the questions: how can x-ray inspection systems positively affect productivity? And, which features of an x-ray inspection machine will allow for enhanced productivity? Manufacturers need to remain successful in a highly competitive and increasingly global marketplace. Reducing the risk of poor quality products will help them to increase their profitability as they avoid unnecessary and costly product recalls. To achieve this, they must ensure that their products meet the quality standards that their customers demand. But an x-ray inspection system can do so much more than identifying contaminants; they can also reduce overall maintenance and ownership costs as many systems now combine the jobs that would normally need more than one machine. For example, the X35 Series x-ray system is designed to consistently detect and remove contaminants for all products, whilst simultaneously performing product integrity checks, from checking

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Today’s x-ray inspection systems also feature the latest, stateof-the-art technology. These systems are equipped with intuitive user interfaces known for their ease of programming and minimal input requirements; they will greatly reduce the burden of time and cost-intensive maintenance. This in turn, will not only optimise the performance and accuracy of operators, but they have the added benefits of reduced training time, improved usability and the ability to provide accurate feedback for the operator. The greatest benefit of intuitive user interfaces is that it will facilitate the product changeover process with the aid

of pre-set menus, thereby minimising changeover downtime and allowing for short product runs. This is of particular interest for manufacturers who process a multitude of products on their production lines, as they no longer face the problem of expensive downtime. The productivityenhancing effect of x-ray inspection systems is not solely attributable to the intuitive user interface. By offering exceptional detection sensitivity at high speeds, modern x-ray inspection systems allow for higher throughput rates without affecting the quality of detection. Manufacturers need now, more than ever, to adopt systems that enhance their productivity while performing other tasks. Through utilising x-ray technology, businesses can be assured that they can produce multiple products at high throughputs with the confidence that they are only exporting high quality safe goods. Future-proofing your x-ray investment The latest x-ray inspection systems that are available on the market today provide enhanced graphical interfaces for easeof-use and, combined with the versatility of new software solutions, also provide on-screen self-diagnostics, enabling operators to monitor the systems on one screen. Combining different streams of information saves manufacturers valuable time as it allows more products to be inspected simultaneously and monitored


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quicker. These systems can also verify fill level, measure headspace and check component presence and absence to alert manufacturers to inspect for over- or underfill to avoid waste and also consumer disappointment. More importantly, they are network compatible, allowing remote access by technicians to quickly diagnose and correct issues. Advanced versions can also be set up for remote server access and integrated with networking programmes to allow uninterrupted monitoring of statistics, images and reports generated from the individual x-ray system, from any computer with network access. This allows manufacturers to adhere to retailers’ codes of conduct and helps them to prepare for safety audits.

function as management tools as well as process control tools to give company leadership the information they need to make informed decisions and guarantee compliance. In short, manufacturers should consider the following questions and advice on how best to select the correct x-ray inspection systems to future proof their business: 1. What are the typical types of contaminants within your production line? What are the nature of your products and the format of your packaging?

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4. Take into account facility floor space. 5. Are environmental issues important for your business? If yes, then look to adopt an energy saving product inspection machine. 6. Ensure that the x-ray technology fully documents all activity in the event that you need to prove due diligence. 7. Be confident that the x-ray machine can be easily integrated into your existing production line with minimal downtime. 8. How future-proof is your investment? Can it easily cope with new product demands and lines? 9. What type of service and support do you need? Remote access? 24x7?

When considering future market needs it is clear that the food industry will continue to invest in food x-ray inspection systems as they will provide manufacturers a strong return on investment (ROI). This is due to the overall low cost of ownership, achieved through simple low-cost maintenance and replacement structure. Trends in the food industry however, are fast paced and ever changing. Producers of x-ray inspection equipment therefore heavily consider new food demands and more innovative packaging designs. Modern x-ray systems are able to adapt their contaminant detection capabilities to new innovative packaging designs, making them a futureproof investment, whilst offering flexibility to inspect a wide variety of products. As food safety regulations increase, compliance and traceability through every stage of a product’s life cycle will grow significantly in importance. For full compliance, it is essential that food manufacturers are able to access product tracking information simply and quickly. In the future, all product inspection equipment will need to simultaneously

FOOD SAFETY

10. Ask your supplier for references and testimonials. Making the Right Decision As the food market becomes increasingly globalised, it will become more and more important for food manufacturers to have advanced, high-performance x-ray inspection systems integrated into production lines. X-ray technology can do so much more than minimise the risk of contaminated product reaching retailers' shelves, it can also look after the welfare of customers and brand reputation, both now and in the future.

2. Know your Critical Control Points (CCPs) as this will help determine where on the line the x-ray system needs to go. 3. Look for a system that can inspect for multiple quality parameters.

About the Author: Daniela Verhaeg is the Marketing Manager at Mettler-Toledo Safeline X-ray, based in the UK. She currently specialises in x-ray technology for product inspection. With five years’ experience working in the field for the food and pharmaceutical industries, she has extensive knowledge of x-ray equipment for the packaging and inspection sectors. Previous to her role at Mettler-Toledo, Daniela worked in other marketing roles in technology corporations such as Bosch Rexroth.


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POULTRY

A CHICKEN IN EVERY POT: CHALLENGES IN

THE INDIAN POULTRY SECTOR

T

he global poultry sectorhas been primarily characterized by a continuous growth in demand over the years. Expected to grow by 31.6% and reach 119.4 MT by 2023, global consumption stood at 90.7 MT in 2012. Global meat consumption per person, expressed in retail weight, is expected to reach 36.3 kg by 2023. This will be 2.4 kg more than the average for 2010 - 12, with poultry meat accounting for 1.7 kg or 72% of this gain. By 2023, poultry uptake will come close to 15 kg per person on a retail weight basis . Over the same period, world trade in poultry meat is expected to increase by 31.3%, from 10.8 million tonnes to

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14.2 million tonnes. A major increase in production is foreseen as BRIC nations emerge as key players. India is expected to double its poultry trade statistics, followed closely by Brazil and China. Traditional poultry producing nations like the US and EU are expected to see a slowdown in growth as developing nations take centre stage. As demand for poultry products continues to grow, exploring India’s role in the global Market becomes more and more crucial. INDIA’S POULTRY SECTOR: AN OVERVIEW

India’s poultry sector represents one of the biggest success stories of the country over the past decade. India is the second largest egg producer and third largestbroiler-chicken producer in the world with production estimates of 65,000 million (2.8 million tonnes) eggs and 3 million tonnes of broiler meat per year. The market is estimated to be worth about INR 90,000 Crore (EUR 12.65 Bn). Nearly 20 million farmers are employed in poultry industry with around 1,000 hatcheries operating across India. While agricultural production has been rising at the rate around 2% per annum over the past two to three decades, poultry production has been rising at the rate of around 8-10%, posting an annual turnover


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among existing players

of US$ 7500 million. The domestic market has displayed increasing buoyancy, owing to a growing rural market based on lower feed and poultry prices, growing disposable income and increased awareness of new technologies and mechanizations in the sector. Nevertheless, urban demand still accounts for 80% of domestic consumption South India accounts for majority of total poultry production and consumption in thecountry. Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Maharashtra in the west and Haryana, Punjab in the north are key regions in this aspect. As domestic demand for broiler meat and eggs continues to grow, the Indian poultry industry is expected to see double -digit growth in 2015. Stable feed prices and encouraging rural demand have encouraged domestic consumption, despite local and global challenges (including an outbreak of bird flu). In addition, exports are also seeing considerable growth. India’s poultry exports grew from INR 314.25 Crore (EUR 44.1 Mn) in 2010 to INR 494 Crore (EUR 69.4 Mn) in 2012. With reduced risk from imports flooding the markets and improving demand, poultry players remain upbeat. Economic revival is expected to stimulate growth of the industry by at least 10%, leading to growing confidence and added expansion

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With reduced risk from imports flooding the markets and improving demand, poultry players remain upbeat. Economic revival is expected to stimulate growth of the industry by at least 10%, leading to growing confidence and added expansion among existing players KEY SECTOR CHALLENGES Despite positive forecasts and investor confidence, the poultry sector still faces certain fundamental challenges. TRENDS Global trends — most prominently, sporadic bird flu outbreaks — have resulted in a widespread demand drop across the country in the past. However, the key concern is the existing lack of storage, cold chain, transport and processing facilities. High feed costs also result in an increased cost of production which translates to higher prices. Other challenges include a lack of quality standards which result in high vulnerability to disease outbreaks. PRICE Poultry integrators have limited control over feed prices and broiler realizations; and they continue to focus on improving productivity by experimenting with feed mixes, lower mortality rates through enhanced farm management and medication,

and continuous efforts towards improving other operational parameters like hatchability, average daily weight gain and reducing selection gaps. These practices may be essential but they translate into compromising on quality. The need of the hour is therefore, specialised systems and upgrades and existing facilities to boost production, enhance quality and improve outputs USE OF ANTIBIOTICS Large-scale unregulated use of antibiotics in the poultry industry could be contributing to Indians developing resistance to antibiotics and falling prey to a host of otherwise curable ailments. Centre for Science and Environment (CSE) in its study done in India to test residues of antibiotics in chicken the CSE lab study found residues of antibiotics in 40 per cent of the samples of chicken that were tested. Antibiotics are no more restricted to humans nor limited to treating diseases. The poultry industry, for instance, uses antibiotics as a growth promoter. Chickens are fed antibiotics so that they gain weight and grow faster. CSE researchers point out that antibiotics are frequently pumped into chicken during its life cycle of 35-42 days: they are occasionally given as a drug to treat infections, regularly mixed with feed to promote growth and routinely administered to all birds for several days


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chicken samples tested.

to prevent infections, even when there are no signs of it. Large-scale misuse and overuse of antibiotics in chicken is leading to the emergence of antibiotic-resistant bacteria in the chicken itself. These bacteria are then transmitted to humans through food or environment. Additionally, eating small doses of antibiotics through chicken can also lead to development of antibioticresistant bacteria in humans. To ascertain the linkage between overuse of antibiotics in poultry farms and antibiotic resistance in humans, CSE researchers reviewed 13 studies conducted by various government and private hospitals across the country between 2002 and 2013. They found that resistance was very high against ciprofloxacin, doxycycline and tetracycline. . The problem is compounded by the fact that many essential and important antibiotics for humans are being used by the poultry industry. In India, there is growing evidence that resistance to fluoroquinolones such as ciprofloxacin is rapidly increasing. Treating fatal diseases like sepsis, pneumonia and tuberculosis (TB) with fluoroquinolones is becoming tough because microbes that cause these diseases are increasingly becoming resistant to fluoroquinolones. The CSE study found two fluoroquinolones antibiotics — enrofloxacin and ciprofloxacin — in 28.6 per cent of the

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Worldwide governments are adopting regulations to control the use of antibiotics. But only those countries have shown signs of improvement that have taken stringent actions. EU, for instance, has banned the use of antibiotics as growth promoters. The World Health Organization (WHO) recommends that antibiotics that are critical for human use should not be used in animals. CSE researchers point out that the poultry industry in India is growing at 10 per cent per annum. Poultry constitutes more than 50 per cent of all the meat consumed in India. India will have to adopt a comprehensive approach to tackle this problem. The biggest problem is the emergence of resistant bacteria in animals and its transmission through food and environment. Till the time we keep misusing antibiotics in animals, we will not be able to solve the problem of antibiotic resistance. For India, therefore, the priority should be to put systems in place to reduce the use of antibiotics in poultry and other food animals. According to the World Health Organisation (WHO), over 58,000 children died in India in 2013 due to antibiotic resistance, and it will be the cause of death of 20 lakh Indians by 2050. ERNATIONAL INVASION After losing an appeal against the U.S at a World Trade

Organization appellate body Indian authorities will now negotiate with their U.S. counterparts to resume the import of poultry products, banned for several years over avian influenza, or bird flu, fears. India banned imports of various agricultural products from the U.S. in 2007 to prevent outbreaks of bird flu in the country. The U.S. took India to the WTO dispute settlement body in March 2012. Both the panel appointed by that body and an appellate arm of the WTO, recently ruled in favor of the U.S., stating that India’s measures restricted international trade. The U.S. is one of the world’s largest exporters of chicken meat, and lifting the ban will throw open a huge business opportunity for exporters to India. India’s local industry bodies estimate that the value of U.S exports of chicken meat, mainly leg pieces, could exceed $300 million a year once India removes its restrictions. The number would grow substantially in future as India’s demand for high-quality protein rises. Indian poultry farmers and breeders are objecting to the move as they fear their businesses could be hit. In India, chicken legs cost around 250 rupees ($3.9) a kilogram. The same imported American product would cost less than half this price as the U.S. has huge frozen stocks


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advisories. INDIAN GOVERNMENT SUPPORT There are a several opportunities for foreign direct investment (FDI) in the poultry sector in areas like breeding, medication, feedstock, vertical integration and

for export.

processing.

American chicken legs could grab around 15% of India’s poultry market, which is worth about 800 billion rupees per year and food chains like McDonald’s and KFC will likely be the main buyers of the imported chicken.

Currently, 100% Foreign Direct Investment (FDI) is permitted in the food processing sector which covers dairy, poultry, marine, vegetables and fruits. The Government of India also launched a National Meat and Poultry Processing Board on 19th Feb 2009 to work as a National hub for addressing all key issues related to Meat and Poultry processing sector for the systematic and proper development of this sector.

FSSAI ON POULTRY The Food Safety and Standards Authority of India issued a draft notification prohibiting the use of antibiotics as growth promoters in poultry and animal husbandry sectors as they render microbes resistant to life saving drugs. The food regulator sought to limit antibiotic use in feed and feed supplements and ensure veterinary supervision of overall antibiotic use. The Authority asked the state governments and union territories to ensure judicious use of antibiotics in animal feed and premix. It also directed them to stop use of hormones as growth promoters in poultry and meat as there are known adverse effects on human and animal life. The draft notification also asked the industry to stop using feed containing meat or bone meal, blood meal and bovine and porcine tissues. It also asked for separation of bovine and porcine meat from poultry meat in the slaughtering and processing plants. The FSSAI notification relies on two advisories issued by the Department of Animal Husbandry, Dairying and Fisheries in June and December 2014. It asks the Food Safety Commissioners and food business operators dealing in meat and poultry products to comply with the

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In addition to these efforts, the Ministry of Food Processing Industries is exploring other opportunities like development of mega food parks, modern abattoirs, cold storage & transport, processing units and incentives to further develop existing projects. THE GROWING INDIAN OPPORTUNITY Robust growth in the poultry output,

coupled with future growth potential and favorable socio-economic factors over the last decade makes India one of the fastest growing world markets in this segment. India’s transition from a predominantly live bird market to a chilled/frozen market isexpected to be crucial for the increased presence in international trade (where India currently has minimal presence). The need for developing efficient distribution system with large investments in cold chain infrastructure, and increasing the market acceptability of frozen chicken are going to be the key industry drivers in the long term. Other factors such as the increased requirement for upgraded infrastructure will also play a key role in determining India’s continued presence in the global poultry market. The industry has traditionally focused primarily on productivity improvement, but current market needs suggest increased importance of enhancing distribution infrastructure, value additions and exercising better control over its supply chain. International players with an interest in the Indian poultry market will find considerable opportunities in this sector — focused on increased technological specialization, enhanced distribution systems and quality upgrades.


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Presents

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# !

Glimpses of Previous Event

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!


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