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DAIRY innovation

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foodbev com A world of food and drink

Sargento: exceeding expectations Interview with Louie Gentine - President and Chief Customer Officer, Sargento Foods

SPECIAL REPORT

INDUSTRY FEATURE

Top 10 dairy companies

On farm processing

DAIRY BUSINESS

Reflections on 2009

PLUS worldwide product innovations, industry and ingredients news 漏 dairy innovation 2009. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.

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Issue 28 - December 2009 路 January 2010


Inside this issue 5

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The editor’s view dairy innovation Editor Geoff Platt reflects on a year that left the global dairy industry ‘shaken but not stirred’ and looks ahead to a new unfolding year.

Innovations New products in the dairy world, from drinking milk through to yogurt, spreads, cheese and ice cream.

Innovation with technology

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COVER STORY

At the forefront of innovation Sargento Foods, started by a man who loved cheese, has had the spirit of innovation throughout its history.

Dairy companies using technology to drive business.

Dairy business Industry leaders reflect on 2009 and look ahead to 2010. For regular industry news updates, visit www.foodbev.com/dairy

18

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Ingredients Latest news from the world of ingredients - a review of Food Ingredients Europe.

News extra

SPECIAL

23 REPORT

Global top 10 dairy companies A review of the top performers in the dairy world.

Two new reports examine the state of dairy.

Dairy tech focus dairy innovation technical news section.

Marketplace dairy innovation products and services guide. Advertisers’ index.

INDUSTRY

33 FEATURE

On farm processing Mungalli Creek Dairy in Australia and Bluebells in the UK. Two dairy farms that moved into on farm processing.

42

FINAL WORD

Reflections on 2009 EDA Secretary General Joop Kleibeuker with more reflections on a challenging, interesting year.

© dairy innovation 2009. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.

www.foodbev.com/dairy Issue 28 - December 2009 · January 2010

CONTENTS 3


foodbev com A world of food and drink

Daily industry news and opinion

Making a splash online now

FoodBev.com Images: screen © Irochka, bottle © Filipe Varela, tomato © Mailthepic, carton © Photoeuphoria, cheese © Edyta Pawlowska, glass © Konstantin Tavrov, orange © Les Cunliffe, bean © Monika3stepsahead, biscuit © Picsfive, strawberry © Braendan Yong | Dreamstime.com


The editor’s view

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That was the year that was . . .

W

hen I was at school, I used to watch ‘That Was The Week That Was’- a popular satirical TV comedy programme that commented on the national and international happenings of the previous week. The programme started with its theme tune and song - “That was the week that was, its over, let it go . . .” I am sure that many in the dairy industry would have similar thoughts and echo those words (with a slight change). “That was the year that was, it’s over, let it go . . .” As I wrote in my editorial at the start of this year: “We are indeed in challenging times.” As many contributors to this issue of dairy innovation have pointed out, 2009 has been quite a year. “An interesting, challenging year,” according to European Dairy Association Secretary General Joop Kleibeuker. “The most spectacular boom/bust cycle in dairy history,” was one of the descriptions in Rabobank’s latest Dairy Review - describing the sector as “shaken but not stirred”. International Dairy Foods Association President and CEO Connie Tipton warned us to

‘get ready for a bumpy night’ but told us “uncertainty and change do not mean we have to head for the bunkers.” Telling us that “anything that doesn’t kill you makes you stronger”, Tipton added: “While we want to manage risk, we do not want to be dominated by fear”. As the year progressed, dairy innovation and our FoodBev.com website carried stories of dairy farmer unrest across Europe. Governments introduced special measures to support their home markets - and while these actions generally pleased the home based dairy industry, they drew sharp criticism in other corners of the globe. I was going to carry out a little exercise and count the number of times the words ‘volatile’ and ‘volatility’ were used in all these

Santa Claus is definitely a Big Cheese Nationally recognised cheese sculptor Sarah Kaufmann created some Christmas magic when she sculpted a 1,920lb life sized Santa Claus out of three 640lb Wisconsin Mild Cheddar mammoth cheeses at a Milwaukee, US supermarket. Santa’s beard was made with Wisconsin Monterey Jack cheese and his sack was overflowing with Wisconsin Dairyland goodies.

stories and reports - but I ran out of time. So, as we come to the end of this year, what does the future hold? I reported in my last editorial that, after attending a number of exhibitions and conferences in September and October, a key message from these events was that dairy was in good heart and many people seemed to be facing the future with a little more confidence.

A compelling story Later in this magazine we focus on the latest dairy report from Rabobank. In its Dairy Review 2009 we read that: “A brutal chapter in the history of the global dairy industry has come to a close. The medium-term outlook for dairy demand and milk pricing has been dented, but remains a compelling story for investors in many regions. “Opportunities will be considerable, but risks also, particularly given the high likelihood of ongoing market volatility.” That word again! “Business models and strategies need to account for these eventualities, regardless of which stage of the supply chain players operate in.” Rabobank believes that the positive medium-term story for

Geoff Platt global dairy remains dented but largely intact or ‘shaken but not stirred’. “The industry has effectively lost a year of demand growth and consumption is likely to remain behind its original schedule in coming years. However, the demographic and cultural trends supporting dairy consumption growth have emerged largely unscathed from the crisis and as per-capita income once more begins to rise in the coming years, global dairy demand is expected to rise steadily.” But, it warns, volatility will remain high on both input and output sides of the market. However, “there is enough evidence to support a scenario of growth led by developing countries and higher yet volatile prices, warranting dairy market participants to consider the implications for their businesses in the years ahead.” So, that was the year that was - its over, let it go. And let us look forward to 2010 and a new unfolding story for dairy. Best wishes to you all.

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DAIRY innovation

A world of food and drink

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EDITORIAL 5


Innovations The editor’s pick of the latest new products

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New dairy products from Scandinavia

D

anish journalist Peter Biisgård reports on some of the latest dairy products that have been launched recently in Scandinavia. Swedish dairy company Skånemejerier and the Danish dairy Bornholms Andelsmejeri - on the island Bornholm in the Baltic Sea - have been working together on a new butter - Smör, packed in 250g blocks. Skånemejerier delivers the cream and Bornholms Andelsmejeri makes the butter.

Skyr is a traditional Icelandic cultured dairy product - a very soft cheese, almost like a strained yogurt. Now Norwegian dairy Q-Mejeriene has launched the first Skyr on the market in Norway. It contains 3.9% fat and 11.3% protein and is available in three different varieties: forest berries/vanilla, strawberry/apple and raspberry/apple.

Kærgården is the number one spreadable brand in the Danish market, made by Arla Foods. The latest product is Kærgården Cook & Bake - a spreadable in liquid format. With its smooth taste of butter, it is ideal for all kinds of cooking.

Two small Danish dairies have joined together to produce a new series of organic butter with taste. Øllingegaard Dairy has joined forces with Nimb Dairy, the small dairy operation in Tivoli - the famous amusement park in Copenhagen. The range includes: chilli pepper, onion, tarragon and dill. Øllingegaard Dairy provides the organic cream while Nimb Dairy makes the butter.

JA (‘yes’ in English) is the name of a new yogurt from Tine Dairy in Norway. It is low fat (0.7%) and low sugar (3%), which means that the product can get a ‘keyhole’ label. The ‘keyhole’ is an official health and nutrition label for food in Norway, Sweden and Denmark. Among the variants in the range are vanilla, strawberry and raspberry/boysenberry.

Milk with a different fat composition is the raw material in Tine’s ‘Engfrisk’ a new kind of hard cheese. The cows have been fed with selected grass and a newly invented feed (hedder noget andet). Engfrisk contains 19% less fat and 24% less saturated fat than similar kinds of cheese.

Tine - the largest dairy company in Norway - has also launched two lactose free products - a semi skimmed milk and a low fat cream for cooking.

© dairy innovation 2009. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.

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www.foodbev.com/dairy Issue 28 - December 2009 · January 2010


Innovations

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Invigorating the fresh cream category with Baileys Dairy Crest and Diageo have teamed up to create pure food pleasure available, not just at Christmas but all year round - New Baileys Extra Thick Cream is available in two flavours: Baileys Original Irish Cream and Baileys with A Hint of Crème Caramel. Dairy Crest believes the Baileys Extra Thick cream range is set to re-invigorate the flavoured cream category and drive sales in an area, which has historically lacked a branded proposition.

Dreyer’s Slow Churned warms up the holidays US ice cream maker Dreyer’s Grand Ice Cream a division of Nestlé USA - has been ringing in the holiday season with the debut of Slow Churned Hot Cocoa light ice cream, a festive new twist on a traditional favourite. With sweet and fluffy marshmallows swirled into a creamy chocolate light ice cream, Hot Cocoa dishes up the same rich flavour of regular ice cream with half the fat and one third fewer calories. The new product joins the popular limited edition holiday line-up: including Eggnog, Peppermint and Pumpkin Pie. Dreyer’s Slow Churned light ice cream holiday flavours are available in 1.5 quart cartons.

Ben & Jerry’s names new flavour after local snowboard champion US ice cream maker Ben & Jerry’s has named its newest ice cream flavour after local champion snowboarder Hannah Teter. Hannah Teter’s Maple Blondie is a maple ice cream with blonde brownie pieces and a maple caramel swirl. Part of the sales proceeds will go to Hannah’s Gold - a charity Teter’s created to fund infrastructure improvements and humanitarian projects in Africa.

Carte D’Or moves into frozen desserts Carte D’Or, the dessert ice cream brand from Unilever UK, is using its strong food credentials to launch a range of frozen desserts that move the brand into an exciting new category, currently dominated by own label brands. The three frozen desserts, which include Madagascan Vanilla & Chocolate Cheesecake, Madagascan Vanilla & Raspberry Cheesecake and Chocolate Truffle & Raspberry Torte, are presented in a rich black patisserie box framed by a strip of gold around the edge. The packaging has been designed to reflect the premium positioning of the new products.

Meanwhile, Ben & Jerry’s has turned a fan’s flavour dream into a reality with its ‘Do The World A Flavour’ competition. Wisconsin resident, Toni Gunnison (pictured below), concocted a caramel ice cream with praline almonds and a caramel swirl. The flavour, which integrates Fair Trade almonds, is called Fairly Nuts and will be available as a special limited edition product in 2010.

Landliebe adds winter favourites to cream pudding range FrieslandCampina has added two new seasonal cream pudding varieties to its Landliebe dairy product range in Germany. The two new flavours for the winter season, available in 150g pots, are Baked Apple and Spekulatius - a popular cinnamon, almond and ginger butter cookie. © dairy innovation 2009. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.

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PRODUCT NEWS 7


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Milk Link goes purely chocolate for new Moo drink UK dairy co-operative Milk Link has launched a new smooth and creamy tasting chocolate flavoured milk - Chocolate Creaminess. The new flavour, one of the new products previewed at the opening of Milk Link’s new Innovation Centre, is part of the Moo extended shelf life (ESL) flavoured milk drink range and is Milk Link’s first purely chocolate product. It uses only natural ingredients and 1% fat milk.

FRijj heats up chocolate fudge brownie flavour for winter Dairy Crest, manufacturer of leading UK flavoured milk brand FRijj, has created a new consumption occasion for a Chocolate Fudge Brownie variant. A vibrant new packaging design encourages consumers to enjoy this thick, filling and tasty milkshake as a hot beverage or a cold drink. The 50cl bottle features a colourful, two sided communication design that creates real stand out on shelf. One face encourages consumers to ‘Try Me Hot’ and gives instructions to heat the milkshake in a mug, whilst the other reads ‘Drink Chilled’.

Berglandmilch launches a Schärdinger winter dream For lovers of milk shakes, Austrian dairy company Berglandmilch has added a range of winter drinks under its Schärdinger label. Packed in high quality sleeved, 75cl PET bottles, the winter dreams range includes Baked Apple, Eierlikör (Eggnog) and Kokosbusserl (an Austrian Christmas cookie) flavours.

US organic dairy farmers create MooMilk brand After Massachusetts based milk processor H.P. Hood decided not to renew the contracts of a group of organic dairy farmers because of oversupply, ten of the farmers have joined together with a local processor and distributor and launched MooMilk - short for Maine’s Own Organic Milk. It is reported that the MooMilk collaboration will create several new jobs and preserve three dozen more - milkers and farm hands among them. Smiling Hill Farm in Westbrook, Maine already makes its own milk and ice cream and has agreed to process and bottle the new brand, while Oakhurst Dairy in Portland will distribute.

Emmi energises with a seasonal caramel boost

Britannia launches milk based vitamin drink Actimind in India Bangalore based biscuits major Britannia Industries has announced its foray into the milk based drinks segments with the launch of Actimind, a vitamin fortified drink for children, based on milk. It is fortified with seven nutrients known to be good for the brain, including five B vitamins that help energise the brain, Choline to help improve memory and Iodine to increase mental development. Available in two flavours - mango and strawberry, it is packed in 15cl bottles with easy to peel foil caps and does not require refrigeration.

Swiss dairy company Emmi has introduced a new limited edition variant to its Energy Milk range for the winter season, reports functionaldrinks from Zenith International. Available in 33cl Tetra Pak cartons, Emmi Energy Milk Caramel joins the existing five strong range and derives its energy giving properties from semi-skimmed milk - with only 2.2% fat - as well as from its additional dextrose content.

Lifeway Foods launches seasonal Kefir flavour Lifeway Foods is spicing up the holidays with the launch of its first ever seasonal flavour kefir - Cranberry Crème Brulee Kefir. The US company’s seasonable alternative to eggnog will give consumers a healthy way to enjoy classic holiday tastes without the calories. Available in 32oz bottles, the drink is bursting with the rich flavour of vanilla custard and caramelised sugar and infused with a tangy cranberry zing.

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www.foodbev.com/dairy Issue 28 - December 2009 · January 2010


Innovations

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Frischli taps into growing milk curds popularity

Activia goes solo in the UK Danone is adding an additional boost to its successful Activia functional yogurt brand with the launch of a single pot, fat free yogurt. The product is available in 165g pots, in four flavours: strawberry, cherry, raspberry and peach. The

company believes the single pot format will appeal to younger consumers, mainly 25-45 year olds - ideal to grab and go when consumers may not have time to consider multi-packs or just need a quick lunch or snack fix.

Meiji and Yoplait join forces to tempt Japanese yogurt lovers Japan’s Meiji Dairies and France’s Yoplait Group have formed a business partnership and announced the proposed launch of new yogurt products in Japan, under the Meiji Yoplait brand in March 2010. The products will include a fruit yogurt packed in a tube for easy consumption. These will be available in six packs - containing two flavours - and in a single flavour two pack. There will also be a range of mild yogurts in single serve cups.

German dairy company Frischli has launched a 30th anniversary special edition product. There has been huge growth in sales of milchquark recently and the company has now launched a Vanilla 6x50g family pack. The pack includes a competition for consumers to win one of 30 Gold Talers - celebratory gold dollar coins. While the six pack product is ideal for children, there is also a 150g pot aimed at the adult market. Another new flavour is planned for January 2010.

Hiland Dairy adds new yogurt products to portfolio Hiland Dairy in the US has expanded its yogurt line with two new products: Health Wise probiotic yogurts and Yophoria probiotic fruit and yogurt smoothies. The Health Wise yogurts are available in multi-packs of four 4oz cups in four flavours: vanilla, pomegranate cherry, strawberry and pomegranate blueberry. The Yophoria Probiotic fruit and yogurt smoothies by Hiland Dairy come in 9oz single serving packages. Each serving includes 5g of fibre - 20% of the recommended daily value. Yophoria comes in six flavours: Washington Apple, Tropical Mango, Peach Passion, Pina Colada, Pomegranate Berry and Strawberries and Cream.

Müllerlight adds two new lines for Christmas Müllerlight, Britain’s biggest selling fat free yogurt brand from Müller UK, has launched two new lines to bring changes to the yogurt fixture in the lead up to Christmas. The first of these is Müllerlight Lemon Cheesecake yogurt - the third

in a series of Müllerlight Limited Edition flavours. This was followed by Müllerlight Vanilla with Chocolate sprinkles and a Black Cherry underlayer in single pots. It was previously only available as part of a six pack confectionery.

© dairy innovation 2009. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.

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PRODUCT NEWS 9


Innovations

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New dairy products from Japan Left: Yoshihiko Hani, Beverage Japan Right: Steve Galloway, Exigo Marketing

This report on innovations from Japan is brought to you through our partnership with Beverage Japan magazine. Yoshihiko Hani is the President of Beverage Japan and Steve Galloway is International Strategy Director and Co-Founder of Exigo Marketing, an international management consulting firm based in the UK, Japan and SE Asia, specialising in strategic marketing, innovation and market entry in the food and drink industry. As part of its new ‘Zeitaku Kajitsu’ (Extravagant Fruit) brand, Ohayo Dairies has brought out Tsubu Tsubu Strawberry, a mixture of strawberry and two types of peach, plus 38% orange and apple juice, and yogurt. It is a dessert type of drink containing fruit ‘bits’, with less than 5% fat, 53mg added vitamin C and sold in 18cl plastic cups. For the second product in its new premium Royal Milk Calpis series, Calpis has launched Raspberry Royal Milk Calpis, a chilled drink based on Calpis and sold in a plastic cup. It is targeted at 20-30 year old women and contains 30% milk, 3% raspberry juice and 169 kcal. It also contains maple syrup from Canada to create a dessert flavour.

Morinaga has launched a new premium series of its Mt Rainier coffee brand including Double Espresso and Caffe Latte. These products are made from only 100% Rainforest Alliance approved coffee beans from Brazil, and use twice as many coffee beans as found in usual RTD coffee drinks. Targeted at men in their 30s, the Double Espresso is 129 kcal and the Caffe Latte is 164 kcal and they have a refrigerated shelf life of 60 days. Both are sold in 240ml plastic cups. Riding the wave of ‘zero’ products in Japan, Kirin Beverages has launched Fire Cafe Zero can coffee containing no sugar (but using two types of alternative sweeteners instead). It contains milk, has 12 kcal per can and according to Kirin it has developed a new way of producing the coffee which results in a stronger aroma and taste. Beverage Japan is represented in Europe and Asia by Exigo Marketing - www.exigomarketing.com. For more information, contact: steve@exigomarketing.com

Adding Christmas spirit to dairy products Keylink, UK distributor of a range of high quality branded and generic alcohol to the food industry has witnessed greater use of its premium, high profile brands in food products this Christmas. Among the dairy products are Sainsbury’s Taste the Difference Brandy Butter, Extra Thick Brandy Cream and Brandy Sauce - all containing Rémy Martin Fine Champagne Cognac. Tesco is enhancing its Christmas creams range with the re-launch of Really Thick Cointreau & Mandarin Cream. Available in 250ml pots, it is a luxurious cream consisting of sweetened double cream with a mandarin and orange compote and the popular orange liqueur. Meanwhile Marks & Spencer is offering Wensleydale cheese with cranberry, orange and Cointreau. Lakenham Creamy’s Norfolk County Fresh Cream Ice Cream

is an award-winning range of fine quality, gourmet ice cream made using a pure fresh cream base, eggs, sugar and only natural flavours. One of the variants, Cointreau & Mandarin Ice Cream, was first produced 15 years ago and remains one of the company’s best sellers. Bath based Marshfield Farm first produced Cointreau & Orange Ice Cream some 18 years ago and it too has been going strong ever since. It contains mandarin segments and a concentrated extract of Cointreau at 60% alcohol by volume. Village Dairy is celebrating the success of its Cointreau & Orange yogurt after winning Gold at the Great Taste Awards 2009. Cointreau & Orange yogurt forms part of the Village Dairy’s six strong range of luxury liqueur dessert yogurts using branded and generic culinary alcohol supplied by Keylink.

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www.foodbev.com/dairy Issue 28 - December 2009 · January 2010


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Arran Creamery creates unpasteurised cheese for top retailer The Torrylinn creamery on the Isle of Arran has created a premium, unpasteurised cheese for retailer Marks & Spencer, which sees the cheese produced, matured, packed and distributed from the Scottish island. The product has won a listing in all of Marks & Spencer’s Scottish stores. The Kilmory Cheddar is hand made to an exclusive recipe in a partnership between the retailer and First Milk, the farmer owned business, which operates the Isle of Arran creamery.

Wyke Farms spreads its Truly Scrumptious butter Wyke Farms, the UK’s largest independent cheese producer and milk processor, has unveiled the latest addition to its range of traditional cheddar and butter products, a new spreadable version of Truly Scrumptious Farmhouse Butter, available in 500g tubs. The introduction of the new product is described as the next logical step in modernising Wyke Farms’ otherwise very traditional farmhouse range of products.

Roth Käse goes Mini to meet customer demand US based cheese maker Roth Käse has launched 4oz Mini Slices - a range of pre sliced award winning artisan cheeses, including Havarti, Gouda and Gruyère. The company says reduced packaging sizes has emerged as a new trend that addresses the needs of today’s consumer. So its new Mini Slices offer the perfect

solution to specialty cheese consumers looking for convenient premium quality cheeses at a budget friendly price point. The range includes ten specialty varieties packed in a convenient resealable bag with peg hooks for easy merchandising. The new look packaging includes recipes on the back panel.

Fromalp’s new products from old recipes Swiss dairy company Fromalp has launched Gruyère Grande Tradition cheese, made to an original, centuries old recipe using raw milk and cultures produced in the cheese dairy itself. The Gruyère is matured for ten months in a cellar with a humid atmosphere, allowing it to develop a unique, delicious flavour and a dark brown rind. Only those cheese dairies in the Gruyère region that are adept at this authentic recipe are selected for Grande Tradition.

Kretschmar Masters new Deli line US based Kretschmar’s 120 year old legacy of producing superior deli products continues with the introduction of a new broad line - Wisconsin Deli Cheeses, now available in 8oz cuts for the self service case. Setting them apart, the selections feature the Master’s Mark, a symbol that guarantees that

each cheese has been made under the supervision of a Wisconsin Master Cheesemaker who has completed a rigorous state certification programme. Included in the new line are Smoked Baby Swiss, Butterkäse, Colby Jack, Sharp Cheddar, Havarti, Muenster, Pepper Jack and Red Wax Cheddar.

© dairy innovation 2009. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.

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PRODUCT NEWS 11


Innovation with technology Dairies use technology to drive business

Anthony Rowcliffe put Loma System’s IQ3 to the test UK cheese and speciality chilled food supplier Anthony Rowcliffe and Son has selected Loma Systems, world leaders in metal detection, checkweighing and X-ray systems, to install a state of the art IQ3 Metal Detector for its new range of 11 Artisan cheeses for retailer Marks & Spencer. All the cheeses are individually hand-cut with wire, so it was vital that Loma provided a machine that could identify the smallest metal contaminants. Loma specified a carriage track reject conveyor, designed to push reject trays down a separate

conveyor system to ensure trays with contaminated product are kept separate from safe trays. Rowcliffe complies with the industry standard RFID tracking system to ensure products are tracked throughout the delivery process to guarantee safe arrival.

Fresh Sleeves for most popular cream yogurt in Czech Republic Long standing co-operation between the Czech dairy company Olma and Greiner Packaging is moving in a new phase. The cream yogurt Florian is available in sleeved K2 cups - packaging that emphasises the freshness and quality of its content. Olma has chosen Greiner packaging for many years. One of the highlights of the co-operation was when Olma became the first Czech dairy

to use a sleeved cup. Since then, Greiner has gradually increased the strengths of sleeve technology. This decoration variant is in high demand and suitable for the creation of the most versatile shapes and high quality colour and print.

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Isotrak helps Wiseman save 5,000 tonnes of CO2 per year Robert Wiseman Dairies is on target to reduce carbon emissions by 7% - equating to almost 5,000 tonnes of CO2 - now that it has completed installing Isotrak’s Active Transport Management System (ATMS) across its 900 vehicle fleet. The reduction will be linked with an overall fuel consumption improvement target of 1mpg. Isotrak and Wiseman Dairies have been working together since March 2008, using

Isotrak’s unique Transport Efficiency Analysis (TEA). For Wiseman, the TEA indicated potential fuel savings of 5% could be achieved by implementing Isotrak systems - including the optional Driver Style Monitoring module powered by CANbus engine telematics data.

Tim chooses Moody for upgrade A commitment to sustainable manufacturing practices combined with major growth in volumes led to UK based Tims Dairy calling on Moody Systems to increase its milk and cream storage capacity. Tims Dairy manufacturers high quality fresh live cultured dairy products for food service outlets, major retailers, food

For Florian all of the cup surface is used - guaranteeing a good figure on the shelves. The look of the sleeves conveys the core messages of the content: Freshness, fine taste and best quality.

manufacturers, distributors and independents across the UK. With demand for its own-brand range as well as products for private label customers on the steady increase, the company has made substantial investment into production methods. Most recently, Moody Systems has supplied and installed two 20,000 litre silos and a 12,000 litre cream tank and refurbished the valve matrix. The upgrade more than doubles the dairy’s storage capacity and means it can reduce the number of tanker journeys, saving thousands of road miles every year.

BASF flooring makes the grade at Arla Foods BASF Construction Chemicals, a division of BASF, has been working with Arla Foods UK to ensure that the flooring at its largest UK dairy in Leeds will stand the test of time. Since 2003 40,000 square metres of BASF’s Ucrete heavy duty polyurethane flooring has

been installed in Arla sites in the UK. For the three stage Leeds project, all floor zones required a slip resistant finish as some areas were continuously wet. Installation onto early aged concrete was achievable using Ucrete systems without the need

for special primers. As Ucrete is moisture tolerant and withstands traffic after 16 hours, early access for subsequent trades assisted all parties in meeting a tight programme. In excess of 100,000 square metres of various grades of Ucrete have been installed in Arla

facilities in Europe. At around half the cost of hexagonal-tiled flooring, it is a durable, cost effective solution.

© dairy innovation 2009. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.

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Domino helps Town of Monaghan Co-op spread Kerrygold message Increased print quality, greater sophistication of coded information and improved equipment reliability are among the key benefits reported by dairy product packaging specialist Town of Monaghan Co-op, in the Republic of Ireland, following the installation of Domino’s new G-Series thermal ink jet (TIJ) printer. These factors have proved critical to Town of Monaghan’s contract with Irish butter brand Kerrygold, for which the farmer owned co-operative produces several million butter blocks in its signature gold foil packaging on an annual basis. Following investment in the latest high speed butter packing machinery to accommodate an annual output capacity approaching 50 million individual

packs, the Co-op realised the old ink jet coding systems would not be appropriate for the new line. So it looked at the benefits of thermal ink jet delivered by Domino’s new G-Series printer, which affords manufacturers improved quality and high speed printing onto an expanding and diverse array of substrates 600dpi resolution and speeds of up to 300m per minute.

Domino’s outer case coders keep Bel’s Laughing Cow smiling Thanks to a growing partnership with Domino, Fromagerie Bel - the company behind such leading brands as Laughing Cow, Kiri, Babybel, Boursin and Leerdammer - is able to uphold manufacturing efficiencies and ensure complete reliability of its outer case coding and marking requirements across its French production sites. The cheesemaker uses Domino’s robust and reliable C-Series plus outer case coders across its six French manufacturing sites. At Lons-le-Saunier, one of the larger of the company’s 26 manufacturing sites worldwide, Domino’s C-Series plus coders print high quality, 300dpi alphanumeric codes and graphics directly onto secondary packaging across several lines. These lines are packaging Bel’s Laughing Cow, Apéricube

www.foodbev.com/dairy Issue 28 - December 2009 · January 2010

and Pic & Croc products and each now features a Domino C6000+ outer case coder to apply essential date, batch, hour, minute, and line number information. In addition, a Domino M-Series Print and Apply labeller serves Bel’s pallet labelling requirements and is used predominantly to apply ad hoc end-of-line stickers for promotions and money off offers.

PRODUCT NEWS 13


Dairy business

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Reflections on 2009 and hopes for 2010

2009 has been a challenging year for the dairy industry. The global recession, fluctuating prices, the melamine crisis in China, have all had an impact. Previous years had seen high growth in emerging markets and high prices. But the deteriorating world economic crisis hampered consumer confidence with a direct impact on consumer spending in many sectors, including dairy. dairy innovation asked dairy industry leaders and analysts for their thoughts on 2009 and their hopes for 2010.

Richard Doyle President, International Dairy Federation The high volatility in world prices experienced during 2007 and 2008 has led many countries and industry to review their market policies. The market cycle hit its lowest point in 2009, and prices have started to recover in the last part of the year. Farmers’ prices in many countries were back to levels of the early 1990s even though cost of producing milk has increased substantially over these years. As a result, many producers have not been able to recover their costs and increased their debt load.

Various governments have resorted to the traditional tools of assistance Various governments have resorted to the traditional tools of assistance in time of crisis, conceding nonetheless that such programmes were short term and could not represent a long term solution. In Europe, discussions about alternative price and supply stabilisation mechanisms are ongoing. 2009 could be seen as a time of transition between the worst and what we hope is the road to continued growth and increased prosperity.

Environment has moved to the forefront of the International Dairy Federation’s (IDF) files in 2009. In a move to always stay at the forefront of top issues, IDF partnered with other international organisations with a commitment to reducing the dairy industry’s footprint on the environment and providing a forum to showcase actual realisations of the dairy industry around the world. I believe the consumer interest in food that is nutritious and has a lower impact on the environment will continue and increase as a trend in 2010 and beyond. In 2010, we should see a recovery from the global recession helping dairy demand. The long term prospects for the dairy industry remain sensibly the same: Asia is seen as the area for real growth in demand, as the melamine nightmare fades and confidence slowly returns. China has imported more dairy products in 2009, showing signs of demand recovery in that market. We must be cautious in our optimism about the recent increases in world prices: they may not be indicative of a long term upswing, considering that price volatility is still expected and could increase, stocks of dairy products have increased and demand is still sluggish. It would be premature to expect the same level of high growth seen in the last few years

Richard Doyle

before the food crisis. Prices in 2009 were not sustainable for most farmers around the world. We must also evaluate the impact of the monetarisation of food aid as a solution to developmental assistance. Developed countries should consider their approach to food aid with long term commitment to food volumes. While this move to monetarisation was meant to prevent trade distorting practices, it also showed significant drawback: In snapshot, low stocks and high prices in 2007 led to a serious food crisis, only made worse with the financial crisis, which made it difficult for developed countries to increase food aid

dollars. Then, as prices fell and some governments purchased surplus production, food aid became one way to reduce stocks. Many experts believe that greater volatility in world markets will become the new norm. I can only hope that the past few years have taught us to be better prepared to address future volatility in the markets and look at ways to maintain economic sustainability, to aim for better price stability at the farm level, better and faster production controls in line with the changing market conditions, greater collaboration and respect among all interveners in the food chains and planned food aid to fight hunger year round.

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Tom Gallagher Chief Executive Officer, Dairy Management Inc 2009 was one of the toughest years ever for US dairy producers. High input costs, combined with low on farm milk prices caused in part by the steep decline in US dairy exports and the global economic recession, resulted in negative returns month after month. Low on farm prices brought lower retail prices for consumers, leading to strong domestic demand. This, combined with DMI (dairy checkoff) demand building efforts, will result in a £3.5 billion increase in US dairy sales in 2009.

Dairy producer leaders have worked with Dairy Management Inc (DMI) to help increase immediate sales, and with National Milk Producer Federation to help manage supply. DMI helped grow sales through strategic partnerships with industry leaders such as McDonald’s, Domino’s Pizza, General Mills and others, increasing fluid milk and cheese sales by hundreds of millions of pounds. Even with these demand building activities, on farm price volatility will continue until the industry addresses some fundamental issues.

While it is impossible to eliminate volatility completely, industry groups are working to identify ways to manage it for the long term and provide a more stable path for everyone from the producer to the consumer. Meanwhile, DMI works through the Innovation Centre for US Dairy to provide a forum for the industry to pre-competitively address barriers and identify innovation and sales opportunities. These efforts can help provide a foundation for sustained US dairy growth and viability.

Tom Gallagher

Jim Begg Director General, Dairy UK and Past President, International Dairy Federation This year has started and ended with a bang. In fact, for Dairy UK it has been a whole series of bangs. January saw the Food Standards Agency launch its saturated fat campaign, urging people to grate their cheese instead of slicing it. Some good PR by the dairy industry turned this issue into a more positive story through initiatives such as The Dairy Council’s National Dairy Week in February. In fact, we have taken on sole funding of the Dairy Council to our mutual benefit, with a stronger focus on nutrition science. As the EU’s health claims legislation and the current debate on front of pack labelling show, there

is no shortage of nutritional challenges for dairy if it is to retain its healthy crown. We have also been busy on the environment side. We published our Sustainability Report in October and were invited to attend the Copenhagen Summit in December. A series of increasingly strident calls for cuts to dairy consumption in order to save the planet have been effectively met by our insistence on the principles of the Milk Roadmap, which make the industry’s commitment to further improvements absolutely clear. Of course, the markets have been down and now up, causing their own problems for the industry. And of course,

Jim Begg we’ve seen the collapse of Dairy Farmers of Britain. But as another year slips away behind us, I am left with the certainty that the industry is in a stronger position than it was

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12 months ago, and that the prospects for the next few years is profoundly positive. Innovation is as strong as ever, and demand is returning at the global level.

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www.foodbev.com/dairy Issue 28 - December 2009 · January 2010

NEWS 15


Dairy business

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View from the analysts

Dynamic growth trend for dairy interrupted Preben Mikkelsen President, PM Food & Dairy Consulting, Denmark

Natasha Maiseyeva Senior Analyst, Zenith International The dairy industry has faced considerable uncertainty fuelled by volatile market conditions in the course of this year. Liquid global dairy consumption hit an all time high in 2008, led by highly populated emerging markets such as India and China. However, the decline in the economic activity since mid-2008 has had negative effects on the global dairy consumption. Higher farmgate prices encouraged production, while great price increases were seen in individual countries, limiting demand growth. Fall in demand globally led to deceleration in milk production and 2009 saw the lowest growth in more than ten years.

Dairy is still perceived as ‘nature’s perfect food’ Decreased consumer buying power and rising unemployment over the course of 2009 are the immediate short term effects of the economic crisis. Weaker consumer demand and the falling prices for the industrial products were reflected in the net sales figures of the major global dairy producers. Companies have had to adapt their initiatives to battle the falling demand for branded dairy. Consumer preference was towards cheaper own label dairy products with statistics showing decreased levels of

Natasha Maiseyeva everyday dairy purchases over the period of economic instability. Aside from the economic crisis, market challenges remain split between mature markets with issues of obesity and nutrition and conquering hygiene and food safety concerns in developing markets. Amongst other issues faced by the dairy industry was the growing problem of climate change. Global Dairy Agenda for Action on Climate Change was signed this year, supported by proactive sustainability projects lead by the dairy industry in 40 countries. Dairy is still perceived as ‘nature’s perfect food’, despite negative publicity regarding its nutritional value, and health consciousness trends remain, especially amongst younger consumers. Regardless of the imbalances in the dairy economy, the market is expected to recover from the effects of recession in 2010 and the long term prospects for growth are positive. However, it will take beyond 2010 to return back to the high levels of growth seen earlier this decade. In particular, favourable conditions are forecasted for cheese and added value dairy products, anticipating continued demand in consumption.

2009 has been the most turbulent year for the dairy sector ever with a very fast and deep impact from the general economic crisis. The milk price went from a record high to a very low level in a matter of 2-3 months but the costs of milk production and dairy processing still remained at a very high level. The impact has been: • 2009 has been the year of survival for the dairy farmers around the world with limited investments and expansions, and many dairy farmers have left the business - both small and large size operations. • The dairy industry has been squeezed between farmers demand for a higher milk price and the enormous pressure from the retail chains and discounters for low prices and private label. • The investments have been limited and in 2009 the mergers and acquisitions has been terminated and has fallen to the lowest level in the past two decades.

Preben Mikkelsen • In general, the private dairy companies have performed better than the co-operatives due to increased pressure on the latter from the dairy farmers. • Ironically, pressure from dairy farmers - especially in the EU - led to extra support in the fall of 2009 just when the market situation began to recover. It seems like a waste of taxpayer money. The overall effect of the economic recession is that the dynamic growth trend for milk production and dairy demand has been interrupted and it will take 2-3 years to get back on the pre-recession track.

A year of extremes Dairy Australia For many in the dairy industry the past year was one of extremes - in the milk price, profitability and confidence, as well as intense climate variability across Australian dairying regions. Many Australian dairy farmers are currently operating at or below break-even levels with 95% having their farmgate price significantly reduced in 2009.

Analysis undertaken by Dairy Australia as part of the 2009 Situation and Outlook Update shows that although farmers were finding it very tough throughout much of the year, recently there are signs of market recovery with input costs easing and some good mid-spring rainfall assisting farm margins in many regions. Dairy Australia Manager Strategy and Knowledge Joanne Bills

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World Dairy Summit 2010 has green outlook

T

he International Dairy Federation’s 2010 World Dairy Summit - being held in New Zealand for the second time - will include a focus on Sustainability in Dairy. In line with this, Summit organisers are exploring ways to reduce the environmental impact of the Summit. Skycity, the Summit venue has been working on energy efficiency programmes for many years now. They are currently trialling an urban micro-scale wind turbine on the roof of the hotel. This wind turbine feeds electricity into the circuits that supply the public areas of the hotel, stairwells, aviation lighting and outside on the Sky Tower. Wherever feasible, re-useable items will be used instead of disposable ones. Recycling facilities are also available at all of the venues being used for the Summit.

sustainability areas including, energy conservation, water conservation, waste management and purchasing

responsibility. This will allow delegates to make an informed choice. Moreover, most of the hotels are within easy walking distance of the conference venue.

allow the organisers to see the impact of the Summit in terms of Green House Gas Emissions, and calculate the reduction in emissions from any changes made.

Sustainability initiatives will be assessed by a Masters student from Massey University’s Centre for Energy Research. This will

For more information and progress updates, check out the conference website www.wds2010.com

Air New Zealand offers a Carbon Offset Programme, where contributions go directly to wind farm credits in New Zealand. Passengers can also donate to the Air New Zealand Environment Trust, which supports projects to enhance New Zealand’s natural Environment. The hotels listed on the WDS2010 website have been audited against key

said that September 2009 was a particularly low point for dairy farmers. “We conducted a survey of dairy farmers and many told us they were facing immediate challenges managing their cash flow and dealing with highly variable spring weather conditions.

Conference venue Skycity is currently trialling an urban micro-scale wind turbine on the roof of the hotel

Dairy Australia Managing Director Mike Ginnivan said Dairy Australia market surveys have shown increases for several months now. “We are seeing increased demand in key Australian dairy markets such as the Middle East and South East Asia, so there are good signs of ongoing recovery for dairy prices. This has been supported “However since September we by the globalDairyTrade results have seen a round of step ups in for whole milk powder (WMP) milk prices by major manufacturing which indicate sustained demand companies as well as an increase from buyers into next year at in rain and better water allocations higher prices. and weakening feed prices, so things are looking slightly better “At this stage the main risk in some regions,” Bills said. to farmgate prices is the strong

Australian dollar,” Dr Ginnivan added. The survey found that sentiment about the future of the industry varies across the country, but overall 60% of farmers surveyed remain positive about the future. Farmers showed even greater confidence in the future of their own businesses, with 66% positive. In some regions however, an increasing number of farmers are considering leaving the industry. Of all of those surveyed, 16% said they were considering leaving the industry within three years (up from 3% in March).

“We know dairy farmers are really hanging on at the moment and have been forced to implement a range of management responses to help get them through,” Dr Ginnivan said. “But we believe we have seen the bottoming of the international dairy market, and with feed prices, irrigation allocations moving in the right direction, and improved seasonal conditions in some regions the outlook is more positive for many farmers.”

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NEWS 17


Ingredients

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Ingredients at FiE Frankfurt played host to the global food ingredients industry in November when it staged Fi Europe 2009 - billed as the premiere meeting place for the world’s food ingredients industry. Once again the list of attendees was a who’s who of the industry’s decision makers. The biennial three day event is a long standing highlight of the industry calendar as it brings together visitors from around the world and across the industry including manufacturers, suppliers, scientists, technologists and food ingredient buyers. In this review we take a look at some of those exhibitors who had something of interest for dairy. Beneo Marketing and Communications Manager Tim Van der Schraelen told dairy innovation that dairy is the driver of functional foods: “If you look at claims, dairy is the leading sector.” But that was logical, he said, because it is a category associated with healthy functional foods and consumers accept enhancements. Van der Schraelen said Beneo has a lot to offer dairy product manufacturers, including sugar replacers (oligo), fat replacement (starch - Remy) and inulins. Like many people in the industry, Van der Schraelen was keeping a close eye on the health claims situation in Europe. He said Beneo had solid science behind its ingredients and he was confident of a positive outcome.

The Frujo stand carried an impressive range of fruit and vegetable concentrates from the Czech Republic being used in innovative dairy spreads, cheeses and drinks. Among them was a spicy bio Lassi drink containing cinnamon, cardamom, ginger and mango. Made for the German market by Andechser Molkerei Scheitz dairy, this organic lassi drink meets demand for unusual, spicy and exotic tastes. Based on the traditional lassi drink made using fermented milk and popular in Asian countries this variant has ingredients supplied by Frujo, who also supply cereals and fibre,

has created a range of flavours including grapefruit, lime, mandarin, tangerine, orange, lemon, clementine, pomelo, yuzu and blood orange. Citrus flavours have complex sensory profiles so it is especially challenging to create the desired flavour type. Frutarom says these flavours display excellent stability and can be incorporated singly or in combination in dairy products and ice cream.

Tate & Lyle optimize

Frutarom has a range of new premium citrus flavourings with sophisticated sensory profiles. Within the framework of its Citrus Competence project it

chocolate, caramel and vegetable bases for spreads and cottage cheese products across Europe. Export Manager Jaroslav Bacar commented on the move towards products without E numbers (Jo eco yogurt from Yoplait) and an increase in demand for probiotic and fibre rich drinks and yogurts. Frujo also supplies fruit and vanilla concentrates for Rajo and Nase Bio yogurt drinks, along with cherries and cereals for vitamin and fibre enriched spreads for Madeta - as well as Fitness yogurts with cereals and fibre. Also on show from Meggle was a probiotic strawberry yogurt and Acidofilo - a fermented

Tate & Lyle has launched an innovative new starch for use in dairy and convenience foods. The starch, named Creamiz, will help manufacturers reduce fat content by up to 30% while maintaining mouthfeel and texture. Creamiz has been introduced as part of the Tate & Lyle Optimize platform and

milk kefir drink in 450g carton containing Lactobacillus acidophilus. These probiotic cultures have traditionally been recognised as helpful for digestion. The website suggests daily consumption of 100ml and maintains that the drink is suitable for everyone including pregnant women and children.

will help deliver significant cost savings for food manufacturers. It uses starch modification technology to make it a leading contender for fat substitution in a wide range of food products. It does not affect the creaminess of products in which it is used but will complement and enhance their existing texture creating a rich and full bodied flavour. Tate & Lyle has already developed several prototypes using Creamiz including low fat cream yogurts and desserts. The company also focused on Solactis galafructose - a disaccharide naturally occurring in heat treated milk and obtained by isomerisation of lactose. It is new to the food and drink industry in Europe but, say Tate & Lyle, it is one of the best studied health ingredients as it was defined as the ‘bifidogenic factor’ in 1957. Although it is not considered as a fibre in Europe, it does have some fibre properties and can be used in yogurt and yogurt drinks as well as dairy desserts. Pleasure without regret - that is how Gelita described Optice, a new concept for fat free ice cream. The company says that while there are many variations of low fat ice cream, none of them come anywhere near the quality and taste of the full fat version. It claims Optice opens up completely new possibilities in producing the required texture and mouth feeling in fat free ice cream. An external institute has testified to the excellent sensory properties of ice cream without fat, stabilisers and emulsifiers

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Ingredients fruity range for sugar free and fat reduced applications.

AAK: new ice cream fats

but only made with Optice, milk powder, sugar and water. Cargill focused on value and health with dairy innovations at FiE, showcasing a range of products and applications designed to provide customers with solutions to two of the key challenges currently facing the food industry: identifying the best value ingredients and applications, and finding healthier alternatives to traditional formulations. Achieving a creamy, rich taste without the use of sugar is a challenge for yogurt makers. It is now possible to deliver on this concept in vanilla, fruit and chocolate varieties, achieving an estimated 50 to 65% calorie reduction. This is achieved by using Cargill's Zerose erythritol as a zero calorie sweetener, together with specialised texturising ingredients and enzyme modified dairy ingredients (EMDI). Cargill's culture and enzyme expertise with flavour capabilities enables the creation of innovative and tailormade, cream based enzyme modified dairy flavours (EDMF). The conversion of the dairy ingredients into concentrated flavour compounds gives yogurt a creamier, more indulgent authentic taste, reducing acidity, with a mouth feel sensation. By adding a strawberry top note to this cream EMDF, Cargill has developed a unique creamy

“We know how to make creamier, more stable and melting resistant low fat ice cream,” claimed Palsgaard with its focus on emulsifiers and stabilisers for ice cream. IceTriple 103, free from trans fatty acids, is the latest addition to its emulsifierstabiliser system that allows ice cream manufacturers to produce a product that tops scores in terms of creaminess, ability to withstand heat shock and melting resistance. For yogurt applications, Palsgaard has developed AcidMilk 315, a new blend without any E numbers and which still gives excellent creaminess and body, as well as water retention. These products can be used in whole milk as well as low fat products. SternVitamin develops vitamin and mineral premixes and now offers the fat soluble vitamins A, D, E and K and beta-carotene as premixes in the form of oily blends - ideal for use in dairy products. Managing Director Lennart Kutschinski said that the market was developing rapidly in the dairy sector. “Vitaminised yogurt shakes and dairy products with Omega-3 fatty acids, cholesterol lowering plant sterols or probiotic inulin are becoming more and more popular.” Biocatalysts has an extended range of enzymes for enzyme modified cheese. The new range includes more proteases and new lipase products, giving an unparalleled array of flavours that can be used in a wide range of applications. Various proteases, including Promod 215P, Peptidase 436P and both Flavorpro 192P and Flavorpro 750P, develop proteolytic savoury notes typical of mature cheeses. These are ideal for both EMC and accelerated ripening applications. Furthermore, F192P and P436P can also be used in conjunction with other enzymes to reduce bitterness. Also new

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is Promod 775P, a new protease product which accelerates proteolysis in low fat mozzarella and other filata cheeses in order to improve the string and melt properties of the cheese. AAK is the world’s leading supplier of speciality oils and fats for food and confectionery products. It now has a new generation of ice cream fats with a significantly improved nutritional profile. Akomix LS 40 and Akomix LS 30 are transfree and have a low saturated fat content, at 40% and 30%, respectively. Although they contain half the saturated fatty acids contained in AAK’s standard product, Akomix TS, it is claimed they produce ice cream of outstanding quality. The products are already used in commercial production. The company has a wide range of ice cream fats which are the result of over 30 years’ experience with vegetable fats for ice cream production. It previously had its own production facility, where new fats could be quickly tested in full scale production, contributing to its expertise in this area.

chymosin for cost efficient cheese production. After successful regional launches in North and South America in 2008, CHY-MAX M has now been introduced to the European cheese market. It is the company’s second generation fermentation produced chymosin (FPC) and is superior to its 20 year old big brother CHY-MAX in several ways. It provides several benefits to the cheese maker: reduced dosage, increased yield, better tasting cheese, cleaner whey, better process control and enhanced shelf life for fresh cheese. YoFlex is Chr. Hansen’s range of DVS cultures designed for yogurt and similar types of fermented milk products. It delivers a very comprehensive range of DVS culture performance with high impact on yogurt processing and end product quality. It spans the entire organoleptic quality range from traditional strong flavoured yogurts to very mild highly viscous yogurts required for the production of, for example, low

Chr. Hansen launched CHY-MAX M, a new, highly innovative and patented fermentation produced

Chr Hansen showcased products for yogurt and cheese production

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NEWS 19


Ingredients

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Ingredients at FiE fat yogurt and creamy yogurt based desserts.

applicability of EPA and DHA in food products such as milk and dairy products.

Also focusing on yogurt, DSM Food Specialties has introduced a unique enzyme culture combination that creates a healthy, natural and sweet tasting yogurt that does not require additional sweeteners. By combining the ability of Maxilact LX5000 purified lactase enzyme to convert lactose to glucose and galactose with the smooth and creamy viscosity contribution of DELVO-YOG Flow Velvet CY-346 cultures, DSM has made it easy for manufacturers to enhance the sweetness of their products without the addition of sugar. Also on show was MaxiBright - an industry first. It is a natural, food grade, fungal based enzyme specifically designed for whey decolourification. Manufacturers can create colourless whey products with clean taste and no off-notes. In the Food Ingredients Excellence Awards Culinar won the Snacks/On-The-Go category with its Culinax flavouring system for ‘difficult to flavour’ products. A company spokesman said it was currently evaluating the benefits of Culinax in dairy applications. “We do have customers who experience fresher flavour using Culinax in say low fat dairy applications. In low fat applications the flavour would traditionally come and go quickly, but with Culinax you get a flavour that is more or less similar to a full fat product and is released over time. So we are right now in the middle of developments for dairy.” As consumer interest continues to grow in the area of personalised nutrition, Fortitech Europe featured samples that demonstrated the company's ability to fortify virtually any product application with a variety of nutrients that can target specific health concerns. The company says it is the founder and pioneer of the nutrient premix industry

As part of a market-led strategy to develop ‘no compromise’ ingredients which promote cost effective innovation, National Starch Food Innovation launched a new ingredient solution for spreadable processed cheese (SPC). Precisa Spread 03 has been created specifically for the Eastern European, Middle Eastern and North African dairy markets. By reducing dry matter, it promises to help manufacturers in these fast growing, cost sensitive regions to decrease recipe costs for SPC products, such as triangles, jars and tubes.

National Starch developed spreadable cheese solution and has helped manufacturers introduce or improve over 30,000 products offering health and wellness benefits to consumers worldwide. Samples on show included Immunity Boosting Ice Cream. In addition, the company had information on their World Initiative for Nutrition (WIN). This business unit expands Fortitech's mission to partner with the many groups and organisations already dedicated to eliminating vitamin and mineral malnutrition, which affects no fewer than two billion people worldwide. Lipid Nutrition introduced Marinol Omega-3 Emulsion worldwide. This highly concentrated fish oil emulsion with superior stability creates better opportunities for food companies to fortify food application with Omega-3 fatty acids and create a great tasting healthy food product. It contains a high concentration of two of the most important

long-chain polyunsaturated fatty acids (LC-PUFAs): eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA). The superior stability of the emulsion prevents formation of the notorious smell and taste of fish. Therefore it increases the

A proprietary starch based solution, Precisa Spread 03 is the outcome of three years of collaboration with ENIL, the French national dairy industry school. The ingredient system enables lower quantities of more costly, duty bound dairy ingredients such as skimmed milk powder (SMP), cheese and butter. This results in significant cost savings, without compromising the taste, texture or stability of the finished product, and means manufacturers are less susceptible to fluctuations in

Plantextrakt celebrated the premiére of Superherbs

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www.foodbev.com/dairy Issue 28 - December 2009 · January 2010


Ingredients dairy ingredient prices. The easy-to-use ingredient system can be added directly to the SPC manufacturing process. The Plantextrakt business unit of the Martin Bauer Group celebrated the premiére of its new Superherbs product concept. “Herbal extracts have been used in food and beverages all over the world for many centuries. The number of manufacturers who use the multifarious benefits of herbal extracts is growing all the time,” said Plantextrakt Product Manager Oliver Hehn. “We developed our Superherbs product concept with this in mind and presented it to the trade public for the first time.” Among the sample recipes on show was a milk drink with black tea and ginger extracts and a

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yogurt drink containing hibiscus, pomegranate and grape seed extracts.

one ingredient that is used in a wide array of applications for its multidimensional features.

Rousselot, leading producer of gelatine and hydrolysed collagen, announced the reorganisation of its gelatine range within two main product lines: Rousselot Functionality and Rousselot Reformulation. Rousselot Functionality gelatine is an all-in-

Today it is readily acknowledged that products low in calories, with low sugar, fat or salt content are often perceived as less indulgent by their consumers. The reformulation of products to make them healthier yet still indulgent is a real challenge to which Rousselot responds with its Reformulation range, based on the texturing and emulsifying properties of its gelatines as well as on the protein supplied by its hydrolysed gelatines.

Friesland Campina DMV

Textrion Progel 800 from Friesland Campina DMV is a whey protein concentrate designed to build texture in food applications. It has exceptional water binding, texturising and

gelling characteristics. It acts as a functional ingredient adding viscosity and texture to food applications. It has consistent viscosity control and exceptional emulsifier properties. Textrion Progel 800 is soluble and gels over a wide pH range. This product forms a firm elastic gel when heated and has higher gel strength and water binding properties than other high gelling whey protein concentrates. The product is characterised by a clean neutral flavour and aroma. It adds viscosity and minimises serum formation in set or stirred yogurts and dessert products. The next Fi Europe exhibition will take place from 29 November to 1 December 2011 in Paris, France.

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T

his year - 2009 - has been a challenging year for the dairy industry. The global recession, fluctuating prices, the melamine crisis in China, have all had an impact. In this dairy innovation

Special Report, we take a look at the top performers in the dairy world.

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special report 23


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Riding out the storm

Z

(based on Rabobank rankings - opposite page) fared?

2009 was a year of contrast for the dairy industry compared to previous years of high growth in emerging markets and high prices. The deteriorating world economic crisis hampered consumer confidence with a direct impact on consumer spending which has not spared the dairy industry.

The rankings have remained relatively the same with the following exceptions: • FrieslandCampina’s merger propelling them into fourth position by turnover (and fifth by milk intake) • the newly formed joint venture Nord-Contor Milch GmbH, created between Germany’s two largest milk processing companies, Nordmilch AG and Humana Milchindustrie GmbH, will now move it into around tenth position (by turnover)

enith International Dairy Market Intelligence Manager Esther Renfrew takes a look in more detail at the performance of the Global Top 10.

In this difficult context, how have the Top 10 dairy companies

as opposed to 17th for Nordmilch in 2008. • the first entry of a Chinese company, Mengniu - despite the troubles with melamine. As yet, Mengniu’s close national competitor, Yili, has yet to make an appearance in the top 20 ranking. However, it has ambitious growth plans: by 2010 it states that it wishes to become one of the top 20 enterprises in the world dairy industry and by 2015 to become one of the top 10. It will no doubt make an appearance on the rankings in the near future.

Esther Renfrew As the rankings show, since the global dairy market is highly fragmented, Zenith predicts further consolidation in the near future as companies are increasingly put to the test.

Top of the list, Nestlé Nestlé is the largest dairy company in the world with a range of well known global brands and an impressive distribution network. It is well regarded amongst its peers for its research and development capabilities. Its presence extends far beyond the dairy sector. The company has a well established presence in many

regions around the world and often now grows organically rather than through multiple acquisitions. Its financial strength has allowed it to invest heavily in emerging markets where it now holds commanding positions in many sectors. It has sold off non-core assets or rationalised product offerings where margins are deemed too low or in countries not central to the company’s future growth plans. Instead it has aimed to increase its presence in such segments as healthy/nutritional products and ice cream where margins are considerably higher. In the first half of 2009: It achieved organic growth across all the sectors it operates in of 3.5%. The dairy segment however, whilst showing the highest sales performance

Nestlé CEO Paul Bulcke at €6.35 billion showed no overall organic growth. That said, Nestlé’s ice cream organic growth improved over the first half of 2009 due to innovations such as Haagen Dazs 5 in North America and the successful launch of Nestlé Extreme all natural in Switzerland. Outlook: Its focus going forwards is investing in consumer facing marketing and R&D to accelerate organic growth. Additionally, the company has stated that creating shared value by providing better nutrition is one of the most important principles of the company. It is addressing two key malnutrition issues of child obesity and nutrient deficiency that will be central to its core agenda going forwards.

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China enters Rabobank’s global dairy top 20

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his year, for the first time, a Chinese dairy company made Rabobank’s annual Global Dairy Top 20.

In July 2009, Rabobank released the yearly publication showing the movements, transaction and key players in the Dairy sector across the globe. Dairy sector analyst Mark Voorbergen looked at the 2008 turnover for dairy companies, plus mergers and acquisitions to date in 2009.

probably move rapidly towards the top 10. Last year’s melamine crisis proved to be only a temporary dent in the company’s impressive growth pattern.”

Menghiu will probably move rapidly towards the top 10

Source: Rabobank International 2009

Voorbergen said the bottom of the chart was the most dynamic part of the ranking 2008 marked the first entry of a Chinese company into the Top 20. “Given its strong growth in recent years, Mengniu will

1

The Rabobank analyst said that perhaps the most interesting transaction by a dairy company in 2009 was the cross-continental acquisition of the European soy drinks business Alpro by US liquid milk specialist Dean Foods. And, referring to the forthcoming merger between Nordmilch and Humana Milchunion - he predicted that next year’s report would finally see a German company move up the ranking to a spot that does justice to that country’s large domestic market. The most active consolidators in the last 12 months were Lactalis, Arla Foods and Saputo. Lactalis acquired in France, Croatia, Switzerland, Poland and Romania.

It also acquired Numico’s babyfood assets that had to be divested over anti-trust issues in France and the Benelux. Arla Foods gained a significant foothold in the Netherlands by acquiring the Nijkerk plant of Friesland Foods and also initiated several acquisitions and alliances in Scandinavia and France. Saputo acquired Alto and F&A Dairy of California in the US and Neilson dairy in Canada. For more information about this or other dairy reports, or to purchase reports, visit www.rabobank.com

Company

Country

Dairy turnover (US$ billion) 2008

Dairy turnover (€ billion) 2008

1

Nestlé

Switzerland

27.2

18.5

2

Danone

France

15.7

10.7

3

Lactalis

France

13.7

9.3

4

FrieslandCampina

Netherlands

13.7

9.3

5

Fonterra

New Zealand

12.0

8.2

6

Dean Foods

US

11.8

8.1

7

Dairy Farmers of America

US

10.1

6.9

8

Arla Foods

Denmark/Sweden

10.1

6.9

1

9

Kraft Foods

US

7.5

5.1

10

Unilever 2

Netherlands/UK

6.6

4.5

11

Parmalat

Italy

5.4

3.7

12

Saputo

Canada

5.3

3.6

13

Bongrain

France

5.2

3.6

14

Meiji Dairies

Japan

4.7

3.2

15

Morinaga Milk Industry

Japan

4.3

3.0

16

Land O’Lakes

US

4.1

2.8

17

Nordmilch

Germany

3.7

2.5

18

Schreiber Foods

US

3.7

2.5

19

Mengniu

China

3.4

2.4

20

Müller

Germany

3.4

2.3

2

Figure interpolated from 14 months data. 2 Estimate.

Please note: 2008 turnover + mergers & acquisitions in 2009

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Global top 10 dairy companies 2. Danone French company Danone in recent years has concentrated on its dairy and nutritional businesses and divested itself of assets in other areas such as alcohol and biscuits. It has some very popular brands such as Actimel and Activia and dominant market positions in markets throughout the world. Indeed, the company claims to be number one in the fresh

The late Daniel Carasso (left) with Chairman and CEO of Danone, Franck Riboud

dairy sector on almost every continent. It is considered a ‘national treasure’ by the French government though it is regularly the target of takeover rumours. The company has stated that it hopes to grow through the acquisition of small and medium companies particularly in the emerging markets of Asia and Eastern Europe. It also hopes to introduce its products to the few remaining markets where it has no presence such as South Korea, Indonesia and Kazakhstan through joint ventures with local partners. The $17 billion acquisition of Dutch baby/ nutritional food company Royal Numicio in 2007 signalled a move towards higher margin lines. In the first half of 2009: The fresh dairy sector presents the most important revenue proportion in Danone’s

3. Lactalis Private French company Lactalis has experienced a period of rapid growth over the past decade. Its global ambitions can best be seen in 1999 when the company changed its named from Société Besnier to Lactalis, a word that can be easily pronounced everywhere. The company has pursued a policy of expansion through acquisition into new markets and is particularly strong throughout the major markets of Europe where its deal-making abilities have been highlighted time and time again, particularly with the acquisitions of Galbani in Italy and a transformational deal with Nestlé. This joint venture, in which Lactalis has a 60% stake (creating a company with revenues of €1.5 billion) involves chilled dairy products in West Europe. It is also now a major player in the US market and has acquired companies in the

portfolio. However, this decreased by 0.3% compared with the performance of the first half year in 2008. There has been some sales volume uplift in the first half of this year as a result of the various marketing initiatives that the division has started to implement since the end of 2008 in order to rapidly adapt its product and/or price proposition to the changing behaviour and preferences of consumers in this ongoing challenging market environment. These initiatives are mainly centred around substantial consumer price reductions coupled with targeted and intensified advertising campaigns as well as adjustments of pack sizes.

Outlook: The sales growth will probably continue to be mainly driven by the leading brands, with a clear focus in all key markets on increasing their functional value for money to respond to the spending pattern of consumers.

4. FrieslandCampina

Middle East and North Africa amongst other countries. It now has 40 plants outside France. Outlook: It will continue to focus on a relatively small number of brands, using its flagship Président brand wherever it can. It claims that seven Président branded products are sold every second throughout the world. With a turnover of €9.3 billion in 2008, of which 60% is outside of France, Lactalis is ranked third globally. Zenith International believes Lactalis will continue to look at opportunities in emerging markets and regions.

The merger between Dutch dairy companies Friesland and Campina created a significant new global presence in the market. Tough conditions within their traditional heartlands in West Europe have forced the hand of these two co-operatives and the merger offers them greater strength and flexibility in the global market. Both companies are present throughout many parts of the world but this merger of two equals gives greater opportunities to their relatively weaker international arms and allow them to expand into emerging markets.

The company is well known for its innovative approach to new brand openings including branded and private label products. It holds strong market positions in many segments of the dairy industry. In the first half of 2009: The focus was on emerging markets, although the markets have remained challenging for FrieslandCampina. Its revenue has dropped to €4.1 billion, a decrease of 15% compared to the 2008 half year results for the first six months of 2009. This time was characterised by difficult economic conditions worldwide, both selling prices and volumes of dairy products sold were being weighted down as a result. Branded products have nevertheless shown a particularly positive trend in South East Asia and Africa, volumes have

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5. Fonterra New Zealand dairy giant Fonterra is one of the largest exporters of dairy products in the world and operates in 140 countries, collecting nearly 20 billion litres of milk. It is owned by 12,000 farmer members and is hugely influential in the world dairy market. It is involved in one third of all international dairy trade and exports 95% of its domestic production. It is particularly strong in the Asia Pacific region and South America where is has grown fast through acquisition and joint ventures.

Fonterra’s Andrew Ferrier (right) & Kevin Bellamy (GDP)

CEO Cees’t Hart grown (up 4%) and market share has increased in most countries in these regions. In its home region, Europe, its market position has improved, although volumes and prices are still under pressure. Its cheese and butter group saw its revenue drop by 20% in the first six months of 2008, which was due to lower selling prices as well as to falling volumes of products sold, especially where cheese was concerned.

The company remains highly vocal in its campaign against trade barriers, subsidies and quotas. While its status as a co-operative does not give it the financial clout of some of its rivals, it does give it a guaranteed and predictable source of milk. In the first half of 2009: Despite rapid expansion, the company plans further acquisitions, especially in Asia. With the acquisition of Nestlé Australia, new products and investments in marketing, Fonterra has grown its Australian market share in yogurt from 1% to 30% and in dairy desserts from less than 3% to just over 30% in value. This now gives Fonterra the opportunity to build a leadership position in the yogurt and dairy dessert market in Australia. The dairy commodities presents the most important revenue stream at €4.81 billion. And its highest revenue increase of 22% was seen in Asia, Africa and the Middle East. Outlook: More recently, Fonterra has seen encouraging signs of positive sentiment and stronger demand returning to international dairy markets, with better pricing across the board led by milk powders. Its main goal is to optimise payout for its farmers but focussing on a strategy of cost savings out of production and supply chains, strengthening global sales, and by strengthening relationships with key dairy ingredients customers around the world.

Outlook: Going forwards, innovation continues to be especially crucial to FrieslandCampina. © dairy innovation 2009. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.

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Global top 10 dairy companies Click here to subscribe

7. Dairy Farmers of America (DFA)

6. Dean Foods Dean is the largest dairy processor and distributor in the US, operating over 100 plants, producing both well known branded goods and private label. The company has consolidated and streamlined the business over time whilst also making acquisitions in segments where it sees growth. The company also sees the difficult market conditions seen recently in the US as an opportunity for the company. In the first half of 2009: Net sales for the first six months of 2008 totalled €3.6 billion, a decrease of 13% from net sales for the same period the year before, due to

DFA is the largest dairy co-operative in the world with over 18,000 members and markets over a third of milk in the US. It was formed in 1998 through the merger of four co-operatives who sought control of their markets in a rapidly changing global business environment. the pass through of lower dairy commodity costs and slightly lower net sales at WhiteWaveMorningstar, offset by strong volume at Fresh Dairy Direct. It acquired the soy drinks business Alpro which put the company back on the European retail landscape after earlier unsuccessful attempts in Spain at the beginning of the decade.

It is now involved in the dairy, food component and ingredients sectors and is present in 40 countries around the world.

DFA CEO Rick Smith (left) Present growth strategies revolve around joint ventures, brand development and manufacturing. Like Dean Foods, sharply higher costs in recent times have particularly hurt as the business still relies heavily on low margin products. Outlook: It is very focussed on its domestic market and focussed on price.

Outlook: A cautious outlook with new opportunities through recent acquisitions.

8. Arla Foods Danish/Swedish co-operative Arla Foods has specific strength in Europe - especially Scandinavia and the UK - though has a presence in many other regions. Also, in the Middle East, where Arla has been very strong and the company had extensive plans for expansion, a widespread boycott of Danish goods was imposed following the publication in Denmark of cartoons deemed to be religiously insensitive. The company estimated it lost

Arla CEO Peder Tuborgh

over €50 million as a direct result of the boycott. Despite this, the company has continued to expand through strategic acquisitions like Tholstrup and White Clover, joint ventures and organic growth. In the first half of 2009: Its revenue decreased by 10.6% in the first half of 2008 due to the effects of the global recession and it has had to contend with important price pressures coupled with an imbalance between supply and demand for milk. It has stated that the reasons for in the declined sales performance are consumers across the world buying fewer and cheaper products as a result of the economic downturn, intense pressure on dairy products and fierce competition in the retail sector. A savings programme

and the reduction in the milk price paid to co-operative members where necessary to keep up a balance. Outlook: It is expected Arla will look to partner up with another major dairy company in the foreseeable future. It has some ambitious plans - according to the Arla 2013 Strategy, the UK business must deliver a revenue increase by about 75% within the next four to five years. Arla’s future strategy will be based on sustainability and cost savings.

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9. Kraft Foods Like Nestlé, the influence of Kraft Foods extends far beyond the dairy industry though its dairy operations are still enormous, with revenues of over $7 billion in that sector alone. From its American base it has expanded into every corner of the globe; a development that has taken place over several decades. It has production facilities in 70 countries and a presence in over 150. It has several of the world’s best known dairy brands and has recently

Kraft CEO Irene Rosenfeld

concentrated on their growth rather than through M&A activity. Again like Nestlé, the company is strong on research and development and has used successes there to increase its value added offering towards nutritional and well being products. In the first half of 2009: According to its first half results, organic growth has been in the order of 2.9%, most coming from its snacks sectors and its biggest region North America. That said, its highest growth regions have been Asia Pacific and Latin America. Its cheese revenue suffered the most and so did Europe. Outlook: Its outlook is positive with it estimating that the US cheese volumes will remain stable and that going into 2010, pricing will be lower but this will be positive for volume growth.

In the first half of 2009: Overall, its net sales for the first six months of 2009 showed a decrease of 13% compared to the same period of the year before.

Z

enith International produces a wide range of research reports to assist general managers, marketers, product developers, suppliers and others associated with the food and drink industry understand and interpret complex markets. The Market Intelligence Department has a dedicated team of research analysts that continuously track market developments. The team provides global coverage and expertise in a diverse range of markets, from established sectors to emerging niches. Among its recent reports of interest to the dairy sector are: • Global Aseptic Packaging 2009 • Global Functional Dairy Insights 2009 • Global Ready-to-drink Protein Beverages 2009

• Dairy M&A 2008 • Global Dairy Products 2008 • Global Milk Drinks 2008 • Omega-3 Drinks 2008 Zenith’s regular functionaldrinks newsletter covers functional dairy. In 2010 it plans a series of dairy reports covering yogurt, cheese, milk and functional dairy products. For more details contact Esther Renfrew at Zenith International: Tel +44 1225 327 913; Email: dairy@ zenithinternational.com

US becomes third largest dairy exporter

T

he United States has emerged as the number three dairy exporter in the world after Europe and New Zealand for 2008 said Rabobank dairy expert Mark Voorbergen.

10. Unilever Anglo/Dutch company Unilever is present in many different markets throughout the world, spanning the home, personal care and food sectors with several global brands such as Knorr, SlimFast and Vaseline. Its presence in the dairy sector has been greatly rationalised over the last decade as the company has attempted to extract greater profit and realise the full potential within its business. As such, it has sold most of its cheese assets (such as the Boursin brand) to concentrate on higher margin businesses. By 2008, it had few dairy interests left save for ice cream where it battles with Nestlé for global dominance with a number of major, heavily marketed brands.

Zenith - global coverage and expertise

His comments followed the release of the company’s World Dairy Map in September 2009 examining international dairy trade flows, milk production figures, export destinations, consumption and processor consolidation.

Unilever’s new global Centre of Excellence Ice Foods (above) is aimed at increasing ice cream innovation by developing healthier products that are more exciting and provide varied sensory experience. Outlook: Whilst market conditions remain challenging, Unilever is continuing to focus on investing in its brands and building longterm capabilities in R&D. Its main objective is to restore volume growth whilst protecting margins and cash flow.

In dairy exports, the United States made gains and moved up from fourth place last year. “Australian drought conditions over the past few years affected milk production. In 2008, dairy export focus weakened in Australia providing space for the US to move into the third spot,” said dairy analyst Voorbergen. While becoming a sizeable exporter, the US also remains a large destination market for imports. The Map shows a global overview of casein dairy protein flows around the world.

In a surprising development, Venezuela was shown to be one of the leading dairy importers in the world, claiming the number two position just behind Russia. “Hugo Chavez, the country’s president, is a great advocate of social programmes aimed at feeding the population,” said Voorbergen. “With stocks of milk powder building up in the country, 2009 imports have been less impressive, but this will likely be a temporary dip, as massive imports have damaged local Venezuelan producers.” European countries were still riding high in per capita consumption charts in various dairy products. Western Europe’s lead in consumption levels is insurmountable. Eastern Europe can do no more than try to move closer.

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At the forefront of innovation Cheese - a very crave-able food

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The story of US cheese company Sargento Foods starts in 1949 with an enterprising young man - Leonard Gentine - who loved cheese. In 1953 he teamed up with Joseph Sartori to establish the Sargento Cheese Company. The company has always been at the forefront of innovation. In 1955 Leonard invented a process for vacuum packing cheese to preserve its freshness, while in 1958 it became the first company to market shredded cheese and the first to use a zipped resealable pack, introduced in 1985. That spirit of innovation has remained to the present day, as dairy innovation Editor Geoff Platt found when he talked to third generation family member Louie Gentine, President and Chief Customer Officer, Sargento Foods.

Exceeding customer and consumer expectations The dairy innovation interview

to incorporate cheese in their products, so we also fared well in our food ingredients division.

What would you say characterises the American cheese market at the moment?

With economic pressures, consumers’ habits have changed somewhat as it relates to their willingness to eat outside of the home. It is likely that this has had some impact on the amount of cheese sold through the foodservice channels as well as a change in where consumers go to eat out - for example, casual dining versus quick service.

Supply and demand for cheese is strong. There may be some tightening of supply in 2010 over 2009, but we believe that consumers will still purchase over 30lb of cheese per person in the US. Cheese is a very ‘crave-able’ food. Not only do consumers use it in their food preparation, but more and more consumers are snacking on cheese. In addition, with so many varieties of cheese to choose from - strong or mild, soft or crumbly in texture - consumers are likely to find at least one cheese they love. Cheese is an integral ingredient in many popular cuisines, such as Italian and Mexican, and there is strong interest in artisan cheeses as well.

Louie Gentine

What has been the effect of the economic recession on cheese sales and purchasing choice?

Sargento fact file: Company size - $900 million net sales Company structure - family owned and operated; four sales divisions Business divisions - consumer products, food service, food ingredients, culinary solutions Number of plants - five Number of staff - 1,400

Despite the recession, Sargento has experienced excellent retail cheese sales as a result of our continued focus on the consumer and innovation. In addition, I believe the retail cheese category has benefited from consumers cooking more at home. Other food manufacturers continue

Sargento is always producing new innovative products. Tell us something about the innovative process - where the ideas come from, how long it takes to put a new product on shelf. At Sargento, we have a long, rich history of bringing innovative new products to market. Not only are we proud of this heritage, but we also believe that building upon it is critical to our future growth. We approach our new product development with a ‘solutions’ mentality. At the core of our new product efforts, we strive to understand the needs of our customers and the consumers they serve, and to create innovative solutions to those needs. Like many consumer product companies we use a structured, stage-gate process to guide our new product projects from concept through

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A story of innovation: 1955: Leonard Gentine invents a process for vacuum packaging cheese to preserve its freshness. 1958: Sargento becomes the first company to market shredded cheese. 1969: Sargento changes the way cheese is sold in supermarkets by introducing peg bar merchandising. 1986: Sargento becomes the first cheese marketer to introduce zippered resealable packaging. 1988: Kids jump for joy as Sargento introduces a cheese snack line. 1991: Sargento introduces a line of reduced fat cheeses. Seven new items appeal to the health conscious crowd in search of good tasting, reduced fat cheese. commercialisation. We start by identifying areas of opportunity based on market dynamics, consumer trends, and our own strategic objectives. We analyse the needs of customers and consumers in those opportunity areas and identify those needs that become the focus of solution generation. Depending on the scope of an initiative, ideas may come from customers, consumers or our internal staff. Ideas generated and believed to merit further investigation are fed into our systematic, disciplined new product process where they are further developed and evaluated. Throughout this process we have a cross functional team using a broad range of both qualitative and quantitative research methodologies to identify and

develop the concepts - product, package and positioning - that provide the strongest solution to those customer or consumer needs. Our process and testing can be adjusted based on the complexity and level of risk associated with an individual project. Closer-in new products can be developed and tested in as little as 4-6 months, while significant new product innovations may take years to fully develop, thoroughly test, and to build the manufacturing capability. In many countries cheese makers are coming under pressure from government bodies to reduce the salt and fat content and cheese is almost being portrayed as an unhealthy product in some quarters. What is the situation in the US?

2001: Sargento introduces another industry first by unveiling the Slide-Rite Advanced Closure System on its shredded cheese packages. 2006: Limited edition cheeses are introduced, bringing small batches of unique and flavourful cheeses. 2007: Sargento Artisan Blends are introduced, combining its own special cheeses with distinct cheeses from artisan cheese makers. 2008: Sargento makes its debut in the produce section with a fresh new way to finish salads and potatoes - Sargento Salad Finishers and Potato Finishers. 2010: The introduction of a new proprietary reduced sodium product - another ‘first’ in the cheese category.

Natural cheese supplies calcium that many Americans need more of in their diet, so we talk about the healthful properties of cheese with our government officials. Sargento has introduced reduced fat products in response to consumer demand. The same

is true of the new proprietary reduced sodium products (a ‘first’ in the cheese category) that we are introducing in January. These are meeting a consumer need according to our research; they are not in response to government regulations. The

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COver story 31


At the forefront of innovation Cheese - a very crave-able food

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Sargento and Green Bay Packers continue to fight hunger

most important factor to us is the taste of the cheese; we won’t compromise on quality. All Sargento products must fulfill our brand promise of consistently providing high quality and great taste - it is what consumers have come to expect of us.

Despite the recession, Sargento has experienced excellent retail cheese sales Your ‘Finishers’ range takes the range beyond the traditional block of cheese. Do cheese makers make enough use of these opportunities? Tell us a little bit of the story behind that. Our point of view - since my grandfather started Sargento in 1953 - has always been to offer natural cheese and related products to meet consumer needs. Both our Finishers line (which combines natural shredded cheese with croutons, dried fruit, nuts, premium meats and cheese sauces), as well as our newest division, Culinary Solutions

(offering complete meals), take a broader perspective to continue to meet consumer needs for high quality and convenience. Our food ingredients division works closely with food manufacturers to provide cheese solutions for their product development needs. In fact, this year they launched an online Idea Centre (above) to assist our customers in defining and designing new products. Sargento Food Service doesn’t sell from a standard product list - they customise for each customer whether it is a frozen, breaded appetiser, a chef quality sauce or a specific cheese cut that enhances a menu.

For the seventh consecutive season, Sargento Foods and American NFL football team Green Bay Packers have teamed up to support Touchdowns for Charity, a programme that raises money for Wisconsin communities. Sargento donates $1,000 to the Wisconsin Hunger Task Force for every offensive touchdown scored by the Packers throughout the 2009 regular season, along with an additional $500 to Paul’s Pantry in Green Bay for every touchdown scored by a wide receiver. “It is exciting to know we were able to help so many Wisconsin communities last year with our 39 offensive touchdowns and 18 touchdown receptions by wide receivers,” said James Jones, wide receiver for the Green Bay Packers. “We expect this year to be even bigger and better with plenty of scoring to help drive the

Sargento Touchdowns for Charity programme.” Since partnering with one of the best franchises in the NFL six years ago, Sargento - the official cheese of the Green Bay Packers and Lambeau Field - has contributed more than $450,000 to Wisconsin food charities. “As the official cheese of the Packers, we’re proud to demonstrate not only our commitment to the team, but also our long term commitment to helping feed those in need within the Wisconsin community,” says Louie Gentine, President of the Consumer Products Division at Sargento.

Consumers have the choice of block cheese, sliced, cheese sticks and cubes, grated, crumbled. Is there anything else to come? Of course! There will always be something new, another way to add value. When my grandfather, Leonard Gentine, started to shred cheese in 1958 that was unheard of, and now it is standard in US supermarkets. Innovation is a definite growth engine for cheese makers and marketers. What is your current marketing strategy and what is to come?

Sargento will continue to invest to build and strengthen our brand, to innovate, and to exceed customer and consumer expectations for products and services. How do you see the future of the cheese industry and cheese market?

I am very bullish on the cheese industry. It has been the business our family has been in for three generations and I expect it will be for generations to come. We have great momentum and opportunities to continue to grow.

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On farm processing

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Industry feature

Mungalli Creek Dairy - naturally perfect Dairy farmers all over the world are considering on farm processing as a way to add value to their milk and increase their income. With pressure on milk prices and rising costs, many have decided to make a local butter or cheese, or produce ice cream or yogurt, or bottle their milk for local delivery. dairy innovation has been talking to one dairy farm in Australia that made such a move at the start of this century. Mungalli Creek Dairy is a family run company that uses state of the art manufacturing equipment and traditional natural farming methods to produce a unique range of award winning dairy products. Established in 1920, the farm is surrounded on three sides by North Queensland’s World Heritage rainforest and is located just above Mungalli Falls. The farm is named after the sparkling Mungalli Creek which feeds Mungalli Falls before it travels 30km through lush tropical rainforest to the costal plains below. This unique natural combination provides the farm with a pristine environment protected from spray drift. A mixed herd of Jersey, Swiss Brown, Aussie Red and Friesian cows graze year round on lush grass-legume mountain pastures, 800m above sea level in the rolling green hills of Millaa Millaa. The farm is in a high rainfall area and the soils are predominantly derived from rich volcanic basalt that grows high quality pastures. The Watson family have owned the farm since 1964 and milk between 150-180 cows. The summer pastures are predominantly tropical grasses (seteria and brachiaria) and legume (pinto peanut) and rye grass and clover in Winter. Due to the predominance of Jerseys in the herd the milk is rich and creamy ideal for making yogurts and cheeses. They currently process 3-5,000 litres of certified biodynamic (organic) milk per day and expect this to increase to 5–7,000 litres per day by July 2010.

(Left to right) Danny Watson, CEO Robert Watson and Michelle Belle-Turner

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farming 33


On farm processing

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dairy innovation Editor Geoff Platt asked Robert Watson about the move into on farm processing. When did you make the decision to process your milk on farm? In 2000, after the deregulation of the dairy industry, we decided to go in that direction as the price for milk was predicted to go down considerably. We had a unique milk biodynamic - that was being sent into the factory and being mixed up with the commodity milk. We were encouraged by a marketing expert from the Department of Primary Industries (DPI). And my Brother Danny wanted to try his hand at making cheese. How did you choose what products to make? We started off looking at cheese as the same marketing expert said that other dairy lines were glutted.

However, we found that cheese sales were too slow and cheeses took too long to mature and so we started initially with yogurt and then bottled milk sales. We now sell 70% bottled milk, 25% yogurt and 5% cheese.

Go out of the whey for a feast Out of the Whey is the Boutique Cheesery and Teahouse at Mungalli Creek Dairy. It was originally the family homestead and is open daily with cheese and yogurt tastings. Customers can enjoy the magnificient views out to the North Johnstone River Gorge and Mount Bartle Frere while they enjoy lunch, cake or coffee. The fresh scones are served with Rainforest jam and Mungalli double cream and the famous Quark cheesecakes are definitely worth the stop as is the cheeseplatter for two or

ploughmans lunch served with homemade mango chutney. Other fare includes Spanokopita a traditional spinach and fetta greek pie served with homemade chilli jam, a three cheese pie, roasted pumpkin, basil, fetta and sundried tomato frittata and quiche and soup of the day. And if that’s not enough there’s always a wicked Silician cheesecake made with full milk ricotta, dark chocolate, and glace orange on a cinnamon biscuit base. Catering and group functions are a specialty and there has also been a great selection of Christmas shopping ideas featuring local art and crafts.

Who helped with advice? The DPI marketing expert got us started. On the technical side we did a two day cheese making course, read a lot of books and learnt by trial and error. A stainless steel contractor helped us with the design of the initial plant. Needless to say we threw out a lot of cheese to start with. But finally we found an old retired cheesemaker in Millaa Millaa who helped us fine tune the cheese making process. Business wise we just jumped in and made heaps of mistakes and learnt about working capital, employing staff, expansion etc as we had to. We went to a few marketing seminars which were very helpful. Andrew Griffiths from the marketing professionals was very helpful and gave us his time and advice freely. Financially we struggled for a long time. Consultants seemed to be more interested in keeping us in the dark whilst sucking us dry. Some bank managers were very helpful while others went out of their way to make it hard. Our accountant was helpful and we also had lots of good

feedback from local consumers tasting our products and various trials of products at the local weekly markets in the region. Where do you sell your dairy products? We sell 85% of our dairy products in North Queensland through the larger chain stores and smaller independent supermarkets, corner stores, hotels, coffee shops and food service. The remaining 15% is sold throughout Australia in speciality organic and gourmet stores. From the market research we have done 30% of our customers buy our products because they are organic. 30% buy them because they are local and the remainder believe they taste better. What have been the challenges in choosing this route? The main challenge has been to raise sufficient capital to grow the business and to become more efficient and make our products more affordable. Initially we made and packed all of our products by hand and while the set up costs were low,

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34 farming

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the price of the finished product was high, which limited sales. So we have mechanised the manufacturing and packaging of the milk and yogurt which are major sellers and only make enough cheese to sell through our farm retail outlet ‘Out of the Whey’. While packaged milk and yogurt may not be as sexy as blue vein cheese or chocolate dairy desserts they make life much easier. We also had no comprehension of the new skills we would require as the business grew - such things as government compliance issues, raising capital, marketing, getting product into major chains, stock control and dealing with staff. Being farmers supplying milk to a farmers co-operative we hadn’t had to deal with processing, distribution, sales or marketing and so it was a huge learning curve. Other challenges included keeping a reliable milk intake throughout the year and attracting new biodynamic suppliers.

And there was the challenge of growing our markets. The packaged milk market has grown by itself whereas yogurt and cheese have been a lot more competitive in our efforts to gain significant niche markets. Have you ever regretted the move? Yes at times. Initially we were fired up with enthusiasm, but as challenges came thick and fast it has often being hard to maintain that initial enthusiasm. There have been long periods of time when it has not been fun at all. That said, positive customer feedback and gratitude for the product helps us stay focused in these difficult times as well as the desire to stay successful and pay off the debts. Now we are getting the right systems, key staff and procedures in place to allow the place to run without us and we are taking a bit more time to enjoy life. If we had had some basic business skills when we started it would have stopped a lot of heart ache over the years.

How do you see the future? Organic, biodynamic and clean food are in strong demand as customers seek purity in their products and a connection back to the source of their food. That’s where the farming method we have chosen and our biodynamic certification give us an advantage. Customers seem happy to pay a little more for the security of knowing where their food has come from and that it’s pure and natural, with no chemicals, fertilisers, growth hormones or GMOs.

So there are definitely opportunities in the market place for growth, if enough farmers wish to change in this direction. I think we have two choices. Either we have an opportunity to rapidly grow the business by taking on some local farmer investors, so that they can add value to their milk using our skills and infrastructure or there is a chance to slow down a bit and get some enjoyment out of what we have created.

Yogurt accounts for 25% of Mungalli sales

National acclaim for dairy diversification project Geoff and Rosemary Brown have been milking cows at Brunswood Farm, Derby for over 50 years. Nearly three years ago they decided to diversify their dairy farm business and make use of their own cows’ fresh, creamy milk by adding to it the finest ingredients to produce a wonderful, hand made, luxury ice cream. They now run Bluebells - a farm shop, tea room, an open farm for schools and the public and they host the Kiddies Barn, an outdoor play equipment outlet. Together with the next generation of Oliver, Henrietta

and Lydia, Geoff and Rosemary have developed their Bluebell Dairy into a thriving business. And with more than 12 different home made ice cream flavours to choose from, customers are spoiled for choice, especially as the milk used has travelled only 20m from the milking parlour! Thanks to a Rural Development Programme for England (RDPE) grant from the East Midlands Development Agency the Browns converted an old farm building into Bluebells and it was opened in December 2008. In the farm shop they sell fresh vegetables, meat, eggs, cheeses, milk, cream and fresh bread all sourced from within 30 miles

a category in the BBC’s prestigious Food and Farming Awards. Not only had they been nominated but they had made it into the finals.

wherever possible. In the tea rooms they produce a variety of light meals and locally made cakes as well as azorie blue coffee that is ‘smoother than a tiger in a tuxedo’. At the beginning of September 2009 the family received a phone call from BBC Radio 4 informing them that we had been nominated for the BBC Farmer of the Year 2009 award,

Competition judges included cheese maker Alex James (a member of the pop group Blur) and Lord Haskins (an adviser to the Prime Minister). The pair visited the farm to interview Geoff, Rosemary and Oliver and to record a radio show for the awards broadcast. The dairy business was runner up in the competition - not bad after less than a year of trading.

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www.foodbev.com/dairy Issue 28 - December 2009 · January 2010

farming 35


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Shaken but not stirred

New Rabobank Report looks at dairy beyond the global financial crisis

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brutal chapter in the history in the of the global dairy industry appears to have drawn to a close, concludes Rabobank’s latest Global Dairy Review.

now until the end of 2010), fundamentals are expected to continue to gradually improve in the global dairy market.

The report says 2009 saw the completion of a phenomenal boom/bust cycle in the global dairy market. As the dust settles, players at every stage of the supply chain have been left wondering not only about the long term direction of the industry, but also how they might cope with anything that even approaches the volatility experienced in the last couple of years.

Rabobank’s primary expectation is to see modest demand improvement, small reductions in exportable supply and the gradual selling down of intervention stocks. This should help to sustain the gains in global prices achieved in late 2009 which already appear to have factored in a substantial tightening of the market.

But there is some good news, among the gloom, as the report authors write: The market certainly showed significant signs of recovery as it entered the closing months of 2009. Buying activity increased as

the world economy returned to expansion, retail dairy prices fell and wholesalers refilled their pipelines. Buyers returning to the world market to source additional product volumes found that milk production had finally started to fall in most regions, following 12 months of unprofitable milk prices. Prices of key dairy commodities were squeezed up as a result, rising between 40 and 70% in US dollar terms in the four months through to the end of October 2009. Looking ahead, the report says that in the near term (from

The report says the medium term outlook for dairy demand and milk pricing has been dented, but remains a compelling story for investors in many regions. Opportunities will be considerable, but risks also, particularly given the likelihood of ongoing market volatility.

Business models and strategies need to account for these eventualities, regardless of which stage of the supply chain players operate in. For more information about this or other dairy reports, or to purchase reports, visit www.rabobank.com

Tetra Pak forecasts gains for ambient liquid dairy products Second Tetra Pak Dairy Index is published

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igures released in the latest edition of the Tetra Pak Dairy Index - which tracks worldwide facts, figures and trends in the dairy industry - show that consumption of ambient milk and other ambient liquid dairy products (LDP) across developed markets is projected to grow by 0.6% from 2008 to 2009. This growth comes during a period of worldwide economic recession, with total LDP consumption (ambient and chilled) in developed markets expected to dip by 1.2% from 2008 to 2009.

Jönsson. “Milk is a healthy, nutritious and affordable food staple, which 44% of the world’s population drinks every day. While we have seen some consumers ‘trade down’ to less expensive products in the category, the market remains stable.”

“Although the recession has affected many sectors, it has not affected milk and liquid dairy consumption in the same way,” said Tetra Pak Group President and CEO Dennis

Tetra Pak is forecasting that total global LDP consumption will grow at a compound annual growth rate (CAGR) of 2.2% from 2009 to 2012 - in line with its projection earlier this year.

According to the new Tetra Pak Dairy Index, total global consumption of milk and other LDP is expected to grow by 1.3% from 2008 to 2009. By the end of 2009, worldwide consumption of LDP is expected to reach 263 billion litres - up from 259 billion litres in 2008.

Much of this growth will be led by developing markets - which have driven 95.8% of global LDP consumption growth from 2005 to 2008 - due to factors such as population growth, rising incomes and the relative novelty of liquid dairy products. Developed markets, which represent around one-third (32%) of global LDP consumption, face a tougher situation because many have already high per capita milk consumption rates. For example, Ireland leads the world in per capita consumption of chilled and ambient milk products at 160 litres per person per year compared to per capita consumption of just 19 litres per year in China. However, the Tetra Pak Dairy Index highlights that producers in developed markets are not standing still and are finding new ways to maintain growth.

The Tetra Pak Dairy Index is a biannual report which is designed to help dairy producers identify new opportunities for growth, while offering all industry watchers information on the latest facts, figures, and trends related to the global dairy industry. For more information, visit www.tetrapak.com

© dairy innovation 2009. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.

36 NEWS EXTRA

www.foodbev.com/dairy Issue 28 - December 2009 · January 2010


Dairy tech focus

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GEA launches higher performance bag filters

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EA Niro has developed its successful SANICIP bag filters to achieve even higher performance and longer life. The improvements are all part of the company’s programme of continuous innovation throughout its product range.

Data Logger selection guide available from Dickson

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inding best match technology for monitoring temperature, humidity, pressure, or electronic signal events can now use the online step by step resource guide available from Dickson Company, which offers the widest selection of data loggers and chart recorders for these monitoring purposes. The Guide can be accessed via the Dickson website.

operated or outlet-powered, operating ranges and cost.

Multiple selection factors are provided including instrument displays, remote probe availability, alarm options, wireless/Ethernet/battery-

Users are able to drill down and mix and match various features until they identify the range of instruments that match their specifications.

Over 1.5 billion Tetra Pak cartons to go FSC

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any of Tetra Pak’s UK and Irish customers will be able to use the Forest Stewardship Council (FSC) label across the nation’s favourite brands. The majority of Tetra Pak cartons in the UK and Ireland can now use paperboard sourced from FSC certified forests and other controlled sources, demonstrating the company’s ongoing commitment to responsible forest management. This development is a first in Europe, where a major liquid food and drink packaging manufacturer is able to launch such a wide scale roll out. It means

iconic household milk, juice and liquid food brands will be able to sport the FSC logo across many, if not all, of their packs within the next 12 months. This development will see supply increase from 200 million FSC-certified packs available globally in 2008, to over 1.5 billion packs, in the UK & Ireland alone. All the European mills supplying Tetra Pak’s paperboard have FSC Chain of Custody certification in place, demonstrating traceability and acceptability of the board used.

SANICIP is a system of CIPable bag filters for spray dryers that uses reverse jet pulsing technology to make sure that powder is removed from every part of the bag. The system works at low differential pressure so saves energy and is quiet too. The process produces no second-grade product so the final yield is higher than with cyclones.

The air inlet has been redesigned tangentially to reduce the risk of powder deposits forming. This reduces downtime due to stoppages for cleaning. Supersonic nozzles are used for reverse jet pulsing on the new system instead of reverse jet nozzles. This system uses less compressed air and reduces the number of components thereby minimising maintenance costs.

Global RTD Protein Beverages 2009 report Zenith’s new report investigates this evolving functional drinks category, providing an overview of the science behind proteinenriched drinks, the benefits they can offer and the target market.

Support your investment decisions Adapt quickly to change and remain aware of what your competitors are doing

Market analysis Global coverage Brand profiles Protein sources SWOT analysis Challenges Identify new growth opportunities allowing you to be early to market

Contact us at mi@zenithinternational.com, +44 (0)1225 327900 or order online: www.zenithinternational.com/reports

© dairy innovation 2009. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.

www.foodbev.com/dairy Issue 28 - December 2009 · January 2010

TECHNICAL NEWS 37


Dairy tech focus Silgan White Cap extends wide mouth solutions

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ilgan White Cap Europe/Asia has extended its range of closure solutions for the food industry with the availability of two 63mm closures for wide-mouth jars. The Plasti-Twist 63VHJ all plastic finish with ring-lining and 63BTO with plastic threads and a floating metal panel, which are manufactured by Silgan White Cap’s US operations, are suitable for hot fill and cold fill applications for plastic and glass containers. The closures offer an alternative solution to traditional metal twist off versions for wide mouth jars and demonstrate Silgan White Cap’s capabilities in all types of closure manufacture - plastic, metal and composite - which enables the company to offer tailored solutions to particular pack or product requirements.

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Rapak offers enhanced performance with new valve

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ag in box specialist Rapak has introduced a new integral valve for its range of Intermediate Bulk Containers (IBCs) from 200 to 1,100 litres. The DN50 Integral valve complements the recently launched two inch version that has been well received by both users and IBC manufacturers. It is suitable for a variety of liquid food products including milk and creams.

Both closures have been designed for maximum convenience and ease of use. A four thread system ensures improved cap application and removal and the caps can be applied with both straight-line and rotary sealing machines. For consumers, the caps are easy to open and reseal and a patented drop down safety brand offers effective tamper evidence.

The user-friendly DN50 is manufactured from a reduced number of parts

The valve is manufactured from a reduced number of parts, underlining the simplicity of the design. In addition, all valves are 100% leak tested during assembly. For maximum convenience, the round thread design enables the valve to be used in any orientation, which improves the filling process. The round shape also simplifies the screwing and unscrewing of the cap for ease of operation by the end user. In addition, the cap holds the valve flap in position, which avoids accidental opening during transit. The DN50 can be specified with a special C clip and spanner. All parts are manufactured in food contact material and carry full FDA and EEC approvals.

Marel launches WPL 9000 Series of Delford weigh price labellers

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arel has recently launched a new range of AEW Delford weigh price labellers - the WPL 9000 Series - that incorporates a huge number of features for easier operation. AEW Delford Weigh Price Labellers have long been a first choice for cheese processors and packers worldwide and the new WPL 9000 Series builds on a proud tradition of accuracy, efficiency and reliability. Available in a choice of speeds to suit individual process requirements, this

new generation of weigh price labellers employs the very latest technology and class leading design to provide excellent performance at a competitive price. Features include: full access to all system functions while running; set up wizards in all menus; multilingual operation; easy label editing; touch screen control; system logging; production control with Innova software. The WPL 9000 Series can operate as stand alone machines or be integrated with a range of manual or automatic production lines using purpose designed Innova software.

The DN50 offers enhanced performance during filling and dispensing

The DN50 can be specified with a special C clip and spanner

Portola UK achieves recognition for ethical practices

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K based Portola (The Caps & Closure Company) has achieved recognition from a global branded beverage customer in respect of its ethical working practices, following an audit completed in September 2009. The audit was carried out by an independent professional body recognised across the industry. The Doncaster plant produces over 3 billion closures, many for the very competitive dairy industry, and supplies the top FMCG beverage customers in both the UK and Europe.

The company is committed to Fair Trade practices and will continue to improve its working procedures in order to minimise its impact on the environment. Recently Portola UK achieved its Level 1 BRC/ IOP re-certification and is ISO90001/140001 accredited.

© dairy innovation 2009. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.

38 TECHNICAL NEWS

www.foodbev.com/dairy Issue 28 - December 2009 · January 2010


Dairy tech focus Mocon certified testing lab to open in India

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Witt launches new carbon dioxide warning device

ocon Inc is partnering with Hemetek Techno Instruments, Mumbai, India to establish a certified testing lab there, due to open in January 2010.

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The lab will be offering barrier and headspace analysis, leak detection and burst testing for food and beverage packaging.

It offers protection against the health hazards of this colourless and odourless gas, often found and used in the food industry, beverage industry, metalworking and fabrication industries, chemical processing and waste management.

Additionally, the Mumbai lab will be offering a two day, hands on permeation/packaging training programme for those wishing to gain supervised experience on Mocon testing equipment. Having already established laboratories in the United States, Germany and China, Mocon is now targeting other strategic locations to establish

a true consistent, global testing footprint. For those companies interested in purchasing Mocon instrumentation for their own facility, the new lab gives them a chance to ‘test drive’ instrumentation before they commit to a purchase. The new Mumbai lab will also target multinational brand owners who want to make sure that the testing standards they have established in other parts of the world can be repeated in India.

itt, the gas technology specialist, has launched RLA 100 a new, low gas warning device to measure concentrations of carbon dioxide (CO2) in ambient air.

The RLA 100 is supplied as two components with the compact gas detector being placed within the hazard area and the signalling unit located outside. Basically, if the adjustable CO2 alarm limit is exceeded, the

device gives an audible and visual alarm. If necessary, additional devices can be controlled, eg extraction units can be started or machinery can be stopped by means of a potential-free contact. Even small amounts of carbon dioxide can have an influence on the human organism, a concentration of 0.3% in ambient air can be harmful to health. A ratio of 5% can cause headaches and dizziness and 8% or more can lead to unconsciousness or even death.

Sidel unveils the world’s lightest bottles

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idel claims to have beaten the world record for the lightweighting of hot fillable PET bottles, with two new innovative designs - the Skyward and Curvy. These two small 0.5 litre bottles have undergone a revolution: they weigh only 18.9g and their design is a real breakthrough for the shape of hot-fill bottles, which traditionally have six or eight panels and often look exactly like each other. Bottle lightweighting has been made possible by complete redesign of the neck, body and base. The 28mm amorphous (non-crystallised) neck has been made lighter, and it accepts a standard cap for carbonated

soft drinks. The base has also been revised, making it stiffer while also using fewer raw materials. The new geometric structure of the bottle body compensates for deformations due to vacuum absorption after cooling. The Skyward bottle has a square section over a cylindrical one, an antiovalisation waist and a rigid label area at the base. The rigidity of the Curvy bottle is obtained by an anti-ovalisation waist in the top third of the body, the heel and the base, the twisted shape that acts as support beams and the succession of curves that absorb the vacuum while also making the bottle easier to grasp.

© dairy innovation 2009. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.

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TECHNICAL NEWS 39


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Images: screen © Irochka, bottle © Filipe Varela, tomato © Mailthepic, carton © Photoeuphoria, cheese © Edyta Pawlowska, glass © Konstantin Tavrov, orange © Les Cunliffe, bean © Monika3stepsahead, biscuit © Picsfive, strawberry © Braendan Yong | Dreamstime.com

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Reflections on 2009:

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a challenging, but interesting year For the European Dairy Association (EDA), the body representing the interests of the EU dairy processing industry, its members had to cope with challenging developments in the areas of international trade, nutrition, consumer information and climate change. EDA Secretary General Joop Kleibeuker looks back on what he describes as ‘a challenging, but interesting year’. evidence to make broad dietary recommendations on restricting saturated fat intake to as low as possible or even ‘zero’.

From an international trade perspective, the volatility of milk prices has been the predominant issue in 2009. Dairy processors have been confronted with unexpected, but extreme price volatility. At EDA we have spent a considerable amount of time looking at how the industry could cope with these extreme price fluctuations. In our view, this extreme volatility of prices is negative for both farmers and processors and the industry should be protected from these extreme price fluctuations. Crucial in our work on price volatility this year, was commissioning the University of Cork to prepare a report on the development of the milk market. At the core of this report, presented at our General Assembly Meeting in Bratislava, is the industry’s need for public assistance in coping with extreme price volatility to prevent it from being damaged.

The industry should be protected from these extreme price fluctuations The EU Commission should think about intervention stocks strategically and use them to counterbalance market fluctuation. Because of the pricing issues, the EU Commission set up a High Level Work Group to examine the situation and

Climate Change

EDA Secretary General Joop Kleibeuker at the EDA World Dairy Forum in Bratislava

come up with solutions. This group will look at contractual relations between milk producers and the dairy industry to define ways of improving competitiveness of farmers. The group will also check whether existing market management instruments are sufficient and assess how R&D could add to the competitiveness of the dairy industry as a whole. As a key stakeholder and active participant, the EDA provides this group with relevant input on facts and figures on developments in the industry and on the market, as well as with the EDA position on the relevant items.

the necessary regulation in order to secure consumer health. Claims and labelling were our focus in 2009, but will certainly continue to deserve our main attention in 2010.

Nutrition challenges

As reported in the last issue of dairy innovation, the EDA and the DDB gathered internationally renowned scientists to present the latest scientific findings on the health impact of milk fat intake. Based on the scientific findings presented and the observations made, the conclusion of the Conference was that policy options for saturated fat need to be reconsidered and that there was no conclusive

On the subject of nutrition, the EDA has been quite busy with the regulation proposals on claims and labelling. For the EDA it must be the Commission’s continuous intention to strive at finding the best possible solution for all parties concerned when developing food policies. With regards to dairy products in particular, this means providing

One of the nutrition challenges we particularly paid attention to in 2009, was the issue of saturated fat intake. In order to make EU policy makers aware of the recent scientific findings of milk fat on health effects and their implications for policy making, we organised in collaboration with the Danish Dairy Board (DDB) the International Conference on Saturated Fat in Copenhagen at the end of September.

Last but not least we can state that 2009 was important for the dairy sector and its relationship to sustainability and climate change. Not only did the EDA raise the awareness on the EU dairy industry’s views on this important issue by organising proactive communications, it also co-signed the Global

Claims and labelling will continue to deserve our main attention in 2010 Declaration on Climate Change as representative body of the EU dairy industry. This declaration stipulates that the dairy supply chain is committed to providing consumers with the nutritious dairy products they want, in a way that is economically viable, environmentally sound and socially responsible. This includes reducing emissions of greenhouse gases such as methane, nitrous oxide and carbon dioxide. As I write this, we await the outcome of the UN Climate Conference in Copenhagen. Whatever that is, we believe that the Climate Change issue will remain high on our agenda in 2010.

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42 FINAL WORD

www.foodbev.com/dairy Issue 28 - December 2009 · January 2010


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