November Edition Zambia Inc

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Alapala; where tradition meets innovation In 1954, we started our journey with the mission to accomplish the best partnership models through innovation to add value and a competitive edge to our customer’s business. Since its foundation, we have built more than 600 turn-key projects and our equipment operates in 5.000 factories in over 100 countries on 4 continents across the globe.

- TURN-KEY FLOUR MILLS

We are proud to be among the top companies in the world’s grain milling technology and still taking big steps to fulfill our vision.

- TURN-KEY GRAIN HANDLING AND STORAGE SYSTEMS

- TURN-KEY FEED MILLS - TURN-KEY SEMOLINA MILLS - TURN-KEY MAIZE MILLS


Contents 8 12

Green bonds, Zambia’s next viable funding option post pandemic recovery

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LME Copper hits 8yr high, the new ‘Copperbelt of Africa’ to drive Zambia’s economic recovery

S&P lowers Zambia’s rating to Selective Default

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Virtual Manufacturing Indaba to gather experts from across Africa

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Global Food Prices Rise by 3.9%

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Loryma debuts wheat protein “chicken breast” strips for on-the-go convenience

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Food Packaging during Covid-19 and Beyond

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Singapore grants “world’s first” approval for sale of Eat Just’s cultured meat

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The Rise of e-commerce

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Travel Inc

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The Wooden Economy and the World’s Ultimate Renewable

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Editors Agatha Nayame Davy Manda Graphic Team and Photography - Mandizo Contributors & Reporters -Humphrey Kasiwa - Daisy M. Namuyemba

In Mumbwa GMA trees are disappearing, fast

Published by Zambia Inc

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Coming soon…. Zambia’s first Food, Beverage and Milling Magazine.

The Zambia Food Business Network, an exciting informative industry focused digital and print publication, with a wealth of news from the Beverage, Dairy, Livestock, Milling, Aquaculture and Food processing sectors. The website will offer a networking and informative platform to the industry players as we focus on engaging equipment manufacturers, ingredient suppliers, packaging solution providers, food safety regulating agencies and many other players. The magazine will inform and educate the masses on matters critical to the industries and the players, while emphasizing the importance of food safety hygiene and safe processing standards.

Connect with leading industry players’ equipment suppliers, ingredient suppliers in; Beverage Grain Cereal Livestock - Aquaculture Milling Industry focused events 2021

ZAMBIA GRAIN –TECH - MAY 2021 ZAMBIA FOOD- DAIRY –BEVERAGE TECH - SEPTEMBER 2021 ZAMCON – OCTOBER 2021



Grain-Tech Zambia

2021 Zambia’s first Grain, Storage, Safety, Innovation, Fortification Nutrition & Milling Conference & Exhibition.

Leverage emerging markets in food production in the SADC REGION and beyond.



Finance

MONEY MARKETS

Green bonds, Zambia’s next viable funding option post ‘disease pandemic’ recovery

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volution of the risk landscape occasioned by climate change effects and disease pandemic is pushing the worlds creativity and innovation in product offerings. Global warming has been fueled by pollution effects due to mining practices, usage of fossil fuels to power manufacturing and industrialization while deforestation has played a major role overtime in deteriorating the ecosystem. Energy bottlenecks have continued to weigh manufacturing pulse due to erratic rainfall patterns which have resulted in depleted dam levels causing constrained hydroelectric power generation. Funds have in this age become more sensitive to sustainable avenues of preserving the environment. The world developed Sustainable Development Goals for the year 2030 which speak to 17 objectives. (See below).

The 17 Sustainable Development Goals COVID threatened SDG2030 agenda. With 10 years exactly to 2030, disease pandemic struck and wiped out progress many nations made towards getting closer to SDGs. The COVID19 fight has gobbled resources causing a spike in healthcare spend at the expense of other economic driving sectors in jurisdictions. Zambia is one country that has not been spared from attaining SDGs but is in the middle of a debt crisis that has continued to weigh its fiscal posture. With a debt to GDP of 104% (excluding VAT refunds and domestic debt), a depreciating currency, spiraling inflation north of 17% and weak growth exacerbated by COVID19 effects, external funding remains a key hurdle. 8

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www.zanaco.co.zm


Default rating widens capital cost. With a junk rating status, the biggest impact for the sovereign is cost of credit lines which are reflective of credit risk profile. Zambia was downgraded to selective default by Standards and Poor’s while Moodys kept its assessment at ‘Ca’ citing fiscal fragilities such as a weak cash flow position occasioned by a huge debt service burden. With a weakening exchange rate taking acute from asset sell off pressure and feeble reserves, debt service costs continues to balloon while dollar scarcity grips the markets from forex market imbalances. Zambias structural issues compound dollar demand as the Southern African nation is a net importer. The 2021 budget is forecast to be 46% funded externally, but with narrowing credit line opportunities, the MinFin looks to domestic money markets to raise liquidity in very difficult circumstances. Crisis times require crisis managers. They say desperate times call for desperate measures, for Zambia crisis times have called product innovation and deal structure. Green sustainable bonds are the way to go as deal makers now focus to convince investors on how ring fenced green offerings are in the midst of sovereign distress. Solar projects, water recycling, biofuel, electric vehicle innovation and real estate to mention but a few are key opportunity areas that require funding. Much as being default rated causing capital flight, it also poses an opportunity for Greenfield projects on condition proceeds of any capital raising are channeled towards intended purposes. Credit rating does influence appetite but local deal makers have a wider task of convincing investors how ring fenced these instruments are from exogenous factors etc.

Securities and Exchange Commission Director Market Supervision and Development – Ms. Mutomboi Mundia

Speaking at the recently launched AFMIndex in Lusaka Securities and Exchange Commission Director Market Supervision and Development Ms. Mutumboi Mundia said the Commission had in conjunction with the Biodiversity Finance Initiative – BIOFIN developed a framework for green bond issuance and was looking for issuers mores at a time when funding options are limited for the copper producer. Zambia has not been a strong performer on the pillars speaking to macroeconomic opportunity (12 out of 100) and capacity of local investors (scored 41 out of 100) which do resonate with the current posture 10

of the capital markets. Zambia’s capital market is this year expected to launch a sandbox framework which will invite fintechs that will help with intermediation process while other product innovations such as green and social bond issuance frameworks await actualization. Commenting at the New Deal for Nature and People WWF campaign on 27 November, SEC Director Market Supervision and Development Ms. Mutumboi Mundia said:

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“The capital markets can accommodate any project whether to do with biodiversity, climate change or land degradation or specifically a project to do with energy, freshwater, wildlife and forestry. What matters is having a well-articulated convincing project; adequate regulatory frameworks (which we already have in place); plus having the discipline to firstly make the needful and truthful disclosures and then to follow through on the promises made regarding use of proceeds, governance structures, reporting requirements, to mention a few,” Once these projects are structured convincingly, funds can be raised through the issuance of financial instruments such as bonds. In particular, a green bond is an excellent financial instrument that can be used to raise long term funding needed to bring to fruition the new deal for nature and people, she said.

World Wide Fund for Nature Country Director – Ms. Nachilala Nkombo

The World Wide Fund for nature has been very instrumental in preserving the environment aligned to the sustainability development goal (SDG) agenda. Speaking at the launch of the New Deal Campaign for People and Nature, World Wide Fund for Nature Country Director Nachilala Nkombo said the campaign was one being run by many countries because of homogenous problem sets. “In terms of burning the curve and turning things around for Zambia, we are aiming to make sure that as we recover from COVID, we recover in a sustainable way. We should take this opportunity to develop 11

a green economy not an economy were there is conflict across sectors around use of resources. We are pushing for a sustainable development agenda have faith that despite being in a crisis but acting together will turn the current situation around,” she said. The AFMIndex revealed increased push towards sustainability in the financial markets with Zambia’s peers such as South Africa, Egypt, Kenya, Rwanda, Lesotho, Eswathini and Namibia all making strides they drive a greener agenda in respects markets.

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S&P lowers Zambia’s rating to Selective Default

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redit rating agency Standards and Poor’s has lowered Africa’s second largest copper producer’s credit assessment to Selective Default – SD from ‘CCC-‘. This is S&Ps third rating adjustment of the copper producer this year and the second in the second half of the year. Barely a week after Zambia’s solicitation request to dollar bond holders on coupon payment freeze from 14 October 2020 to 14 April 2021, S&P ebbed the red metals credit rating to ‘CCC-‘ from ‘CCC’ with negative outlook after Fitch rating agency the same week slid the Southern African nation deeper into junk at 12

‘C’ from ‘CC’ aligning to Moodys ‘Ca’ rating levels a notch above default. A selective default rating is one assigned when a counterpart has or is likely to default on specific class of policies yet continues to meet its obligations with other classes. It includes the completion of a distressed debt restructuring. IN THE LABYRINTH OF FISCAL FRAGILITIES The copper producer is in the labyrinth of fiscal fragilities following amplification of already existing balance sheet vulnerabilities in disease

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pandemic period. According to a press release shared on the London Stock Exchange, Zambia is in arrears with Chinese creditors while simultaneously in talks with bondholders for 6 months coupon reprieve which was pushed back for lack of transparency in overall creditor engagement. The red metal producer got a life line recently with the voting date by bond holders pushed to 13 November coinciding with the grace period for payment of its coupon interest on a 2024 bond for $42.5million. NO FISCAL SPACE STANCE BY MINFIN The MinFin in a note signed by the Secretary to the Treasury Fredson Yamba said they had no fiscal space and would not be paying any of the existing creditors should the standoff not be successful. Zambia in June hired the best investment banker for restructures; Lazard Frere’s to help with restructure of its liabilities. Zambia in June commenced talks with the Washington based lender IMF for a bailout package whose discussions will only proceed after successful debt restructure. MinFin head Dr. Bwalya Ng’andu told investors on 29 September that the copper producers debt to GDP ratio had ballooned to 104% and that external debt stock stood at $11.97billion. Other rating agencies are expected to follow suit in the week. As at 10.46pm yields on Zambia’s 2022 were 60.853%/56.239%, 2024 – 41.171%/38.561% and 2027 – 29.965%/27.921% in bid/ask.

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Agriculture

Global Food Prices Rise by 3.9% Global food commodity prices rose sharply in November to their highest level in nearly six years, according to a benchmark United Nations report released today. The FAO Food Price Index averaged 105.0 points during the month, up 3.9% from October and 6.5% higher than its value a year earlier. The monthly increase was the sharpest since July 2012, putting the index at its highest level since December 2014, the Food and Agriculture Organization said.

The index tracks changes in the international prices of the most globally traded food commodities. All of its sub-indices rose in November. The vegetable oil price index gained a stunning 14.5% in the month, led by an ongoing rally in palm oil

prices linked to sharp contractions in world inventory levels. The cereal price index rose 2.5% from October and averaged 19.9% higher than in November 2019. Wheat export prices rose, linked to reduced harvest prospects in Argentina, as did maize prices 16

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on account of lower output expectations in the United States of America and Ukraine as well as large purchases by China. International rice prices held steady during the month. The sugar price index rose 3.3% month-on-month amid growing


expectations of a global production shortfall in the upcoming marketing season as unfavorable weather conditions drove weaker crop prospects in the European Union, the Russian Federation and Thailand. The dairy price index increased 0.9% to near an 18-month high, driven largely by firmer butter and cheese prices and surging retail sales in Europe during a seasonal low period for milk production in the region. The meat price index rose 0.9% from October, but it is still 13.7% below its value a year ago. Prices of bovine, ovine and pig meats all increased, while those of poultry meat declined.

FAO trims world 2020 cereal output forecast FAO has further lowered its forecast for global cereal production in 2020, which now stands at 2 742 million tonnes - still a record high and 1.3% above the previous year’s outturn. The new forecasts released today with FAO’s Cereal Supply and Demand Brief point to world coarse grains production of 1,470 million tonnes, wheat production of 761.7 million tonnes, and rice output of 508.4 million tonnes. Looking ahead, planting of the northern hemisphere’s winter wheat crop is underway and remunerative prices are expected to increase sowings in several major producing countries. However, crop conditions in the United States of America are moderately poorer due to dry weather conditions, influenced by the prevailing La Niña weather phenomenon.

comfortable level. World trade in cereals in 2020/21 is forecast to rise 3.4% from the previous year to 454.6 million tonnes, driven primarily by a faster than expected pace in maize sales by the U.S.A. and continued strong purchases from China.

Covid-19, La Niña and food insecurity The impact of the Covid-19 pandemic, particularly in terms of income losses, is an important driver of the levels of global food insecurity. The pandemic is exacerbating and intensifying already fragile conditions caused by conflicts, pests and weather shocks, including recent hurricanes in Central America and floods in Africa. Forty-five countries, 34 of them in Africa, continue to be in need of external assistance for food, according to the quarterly Crop Prospects and Food Situation report, also published today by FAO’s Markets and Trade division. According to the report, aggregate cereal production by the 51 Low-Income Food-Deficit Countries is anticipated to grow this year to 496.3 million tonnes - some 7% higher than the last five-year average thanks to large outputs in Southern Africa and Far East Asia. However, cereal import requirements in the 2020/21 marketing year are estimated to rise to 73.9 million tonnes, mostly reflecting increased needs among sub-Saharan African countries.

World cereal utilization in 2020/21 is now forecast to rise to 2,744 million tonnes, up 1.9% from 2019/20, led by expectations of increasing feed use of maize and sorghum in China as well as a rise in the production of maize-based ethanol in Brazil and the U.S.A. Worldwide cereal stocks by the close of seasons in 2021 are predicted to decline to 866.4 million tonnes, translating into a global stock-to-use ratio of 30.7% which FAO notes is a five-year low but still a relatively 17

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Food Packaging during Covid-19 and beyond

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ooking back, 2020 has been full of change - from switching our regular office jobs to remote work, and doing the bulk of our shopping online, the world is a very different place from what it was a year ago today. These major disruptions within our lives have also affected businesses. Industries on the frontlines that have endured these challenges include retailers, manufacturers, e-commerce and packaging, to name a few. With the world still anticipating a cure for Covid-19, we need to remain cautious. As a $900bn-a year industry worldwide, what does the world of packaging look like now?

Putting safety first in manufacturing processes At the start of the pandemic, packaging manufacturers had a difficult juggling act of maintaining employee health and safety and managing disruptions to supply chains, while trying to navigate the demands of evolving market conditions. While research differs on the risks of the virus spreading through packaging, safety precautions in getting products from the factory floor to consumers had to be implemented.

regularly washing hands, maintaining social distances of 1.5-2m and wearing personal protective equipment (PPE). Surfaces are also regularly sanitised. These protective measures implemented by Nampak have been commended by the Department of Labour.

Shifts in consumer behaviour 1. Bulk packaged buying

At the Nampak Liquid Cartons plant in Isithebe, KwaZulu-Natal, stringent food safety and hygiene standards were already in place, but these were further enhanced during the pandemic.

As the severity of the pandemic became apparent, the initial consumer reaction in many countries was a wave of panic buying. Some of this seemed illogical (such as #toiletpapergate in Australia), but much of it focused on long-life products such as dry, tinned and frozen goods.

Employees follow strict Covid protocols, including having their temperature taken before clocking in,

While excessive panic buying seems to have subsided, there has been a sustained demand for groceries as

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consumers choose to avoid restaurants and eating out due to safety concerns, and work habits, such as takeaway coffees and lunch on the go, have moved to more time spent at home. As disposable income takes a hit due to economic conditions, consumers are also opting for bulk packaged goods, which offer greater value for money than single-serving items, and to avoid frequent outings to crowded, public outlets.

2. Smaller size format The other side to consumers being squeezed financially in the current economic climate is that buying less in smaller sizes can stretch their budgets further. Smaller size cartons cater to those whose disposable income is measured in the short term, and who buy on a day-to-day basis. Retailers who want to add value to their consumers’ spending power can also use smaller size cartons in combination deals, such as selling one litre mageu, a loaf of bread and a chocolate together all for a discounted sum. Pre-Covid, many FMCG companies and retailers were faced with slimmer margins, with this pressure ultimately passed onto the packaging converters. New formats in packaging include smaller, lightweight designs that increase filling efficiency and volume density, while offering shelf appeal.

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The rise of e-commerce With the onset of lockdown, retailers were forced to shut their doors, leading to a shift towards online shopping. Consumers increased their digital engagement buying products through e-commerce channels. The retail focus is now on getting products safely to consumers, where packaging must withstand the rigours of transportation through resistance technology, as well as undergo sanitation processes. Retailers must minimize the risk of product loss or damage to reduce the potential of financial losses and product returns. While some consumers will return to physical retail stores, once normality resumes, for others we could see a longer-term change in shopping habits. Many packaging designs will need a major update, especially if they were originally intended for traditional retail channels.

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Sustainability vs health and hygiene Concern over the environmental impact of products remains key. For consumers, sustainability has become a key motivator, with brands increasingly showing their commitment to the environment through cleaner packaging materials and new designs. Liquid cartons are fast becoming a favorite among consumers and manufacturers due to the renewable attributes, recyclable nature, maneuverability, aesthetic appeal and convenience. With the demand for eco-friendly packaging, manufacturers must ensure it is reusable, recyclable or compostable in its current form, or if recycled, capable of being transformed into other products. For example, paper from liquid cartons once recycled can be made into corrugated boxes; the plastic and foil linings can be turned into roof tiles. Similarly, consumers increasingly demand hygiene-assured items and singleuse wrapped items. These new practices extend to the packaging industry as well. Packaging design must ensure the minimal viability of the virus could significantly influence packaging-material preferences. One example of the shift in more hygienic packaging is that of traditional sorghum beer. Distributed in large plastic vats for consumption at shebeens and taverns, the beer is then decanted using plastic scuds. If these are not cleaned properly after each use, they are at risk of transmitting the virus. Sharing the beer among many people through the same vessel also carries health concerns, and open beer drums that aren’t monitored and sealed are susceptible to abuse and meddling, putting drinkers lives at risk. To solve these problems, tamper-proof conical cartons that are sealed and available in single portion sizes are gaining popularity – both retailers and consumers can trust that the beer inside is of high quality, safe and hygienic to drink.

The next normal will put packaging designs in the spotlight as the evolving megatrends reshape the business. Consumer and regulatory pressure to transition to a more circular economy will continue. Spearheaded by the producer responsibility organization Fibre Circle, awareness of liquid beverage carton recycling in South Africa is about to get a major boost. Winning designs will have to address the needs of the online channel, sustainability and hygiene while taking pre-, present and post-consumer factors into account.

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Climate

The Wooden Economy and the World’s Ultimate Renewable

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s a sustainably farmed resource that stores carbon, wood is increasingly being used not only in the built environment for houses and high-rises but also for its cellulose, lignin and sugars. These elements all have a role in helping the world find renewable and low-carbon alternatives to the likes of plastic, chemicals, steel and concrete.

The Paper Manufacturers Association of South Africa (Pamsa), its members and its university partners are exploring the commercial potential of a range of products from the pulping and papermaking process, maximizing product yield from each and every tree harvested.

Image Supplied: Renewability lies at the heart of the South African forestry sector, with trees planted, grown, harvested and replanted in sustainable rotations.

“Two key advantages that commercially farmed trees bring are their renewability and their carbon storage,” explains Jane Molony, Pamsa executive director. Kings of carbon capture Trees in plantations are essentially crops that are planted and replanted in rotations, with only about 9% of the total tree count being harvested in any given year. “This means that there are always trees growing, at different stages of maturity, and these trees are all absorbing carbon dioxide (CO2) and storing the carbon,” 23

says Molony. “The fact that trees are planted, harvested and replanted on the same land makes wood and paper a renewable and efficient resource,” Molony asserts. “For a low carbon future, it’s tremendously exciting.” With trees capturing more carbon from the atmosphere[i] than any other biome, they offer a means to mitigate the impact of climate change. Paper itself is a biomaterial and one of the oldest technologies in the world. From chipping wood into small pieces to cooking them to produce Zambia Inc Magazine


a soup-like slurry and then drying the fibres into sheets, papermaking is a complex and fascinating process. Companies are continually looking at every aspect of their operations to reduce water use, energy consumption and air emissions. Papermakers are no longer restricted to manufacturing paper and cardboard boxes. South African companies can use their raw material to make bio-based products, chemicals, plastics and fuels. Not only does this have an environmental and economic benefit, but it also opens up a whole new world for youngsters with an affinity for engineering, science and innovation.

Low-carbon careers in the bio-economy “Careers in pulp and paper technology and process engineering have not traditionally been sexy, but as the sector finds ways to diversify in the face of reduced printing and writing paper demand, chemists and chemical engineers can help discover the wonder of wood, wood-derived chemicals and paper packaging,” notes Molony. This includes the potential of forest residues (bark and branches), wood pulp and paper mill waste to replace nonrenewable materials such as plastics produced from oil or coal and other innovative products. Using their inherent biorefinery technologies, companies can extract a range of components such as cellulose, lignin and

sugars from process streams that would otherwise become process waste. “This takes mills beyond paper, and into the realms of a biorefinery,” adds Molony.

Tiny fibres with huge potential

Nanocellulose – tiny cellulose nanofibres (CNF) and nanocrystalline cellulose (NCC or CNC) – can be used in Natural polymers from wound dressings and surgical gels, food supplements and planted trees edible packaging, or even as Cellulose – the most abundant a composite for screens on organic compound and electronic devices. polymer on earth – is the major component of wood and the Tipped to be a rival to highstarting point for the various strength materials like Kevlar, nanocellulose composites reactions. have strength, barrier and Dissolving woodpulp, a purified performance attributes similar form of cellulose, is suitable for to, if not better than, carbon subsequent chemical conversion fibre. This makes them ideal into a range of products – it is for use in the automotive and spun into viscose and lyocell aviation sectors. textile fibres for use in fashion and decorating textiles, cast Paper and paper packaging into a film or regenerated into a manufacturers are looking at ways to use nanocellulose to sponge. reduce the weight of paperboard Wood also gives us products without lowering strength and such as carboxymethyl cellulose performance. The substance can or microcrystalline cellulose also be applied as a recyclingfriendly barrier coating instead (MCC). of plastic. This fine powder is extremely versatile. It can bind active Lighter footprints with medicinal ingredients or lignin vitamins into palatable tablets, stabilise emulsions or increase Lignin is the glue that holds viscosity – which is why cellulose wood and plant fibres together. is added to low-fat yoghurt, and It is removed during the pulping lipstick! It also acts as an abrasive process when manufacturing or exfoliant in cosmetics, or an fine paper to prevent yellowing anti-caking agent in washing with age, with some 50 million powders or foods. tonnes being produced worldwide each year. Depending “It is a misconception that on the pulping process used, ‘sawdust’ is added to food. MCC lignin can be recovered from is an approved and safe food the spent pulping liquors in additive that passes through our different forms, i.e., lignin and bodies, unabsorbed,” confirms lignosulphonates, or used as Molony. pellets for fuel. 24

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The commercialisation of these ligninbased compounds creates opportunities in market segments outside of pulp and paper. Lignosulphonates are used in mining and road maintenance as a dust suppressant while their addition to ready-mix concrete improves the flow of concrete as well as reducing the water required, without compromising on strength. One of Pamsa’s members is the world’s largest producer of lignosulphonates from its South African and European operations. Lignin also shows promise as a multifunctional and renewable alternative to petroleumderived styrene plastics and foams.

Bio-chemicals from green gold A substitute for diesel, bio-oils are one product obtained by heating wood in an oxygen-free environment, in a process known as pyrolysis. The solid product generated (bio-char) can be used as an enriched growing medium for seedlings or converted into high-grade activated carbon. When wood waste is broken down by enzymes and fermentation, bio-ethanol is produced. Furfural[ii], dubbed ‘the sleeping beauty of bio-renewable chemicals’, was one of the first bio-chemicals made from biomass. As a worthy competitor to oil-based chemicals, new interest has been sparked in furfural for the production of biofuels and bio-chemicals. Furfural and its derivatives have been extensively used in the plastics, pharmaceutical and agrochemical industries. As a natural precursor to a range of chemicals and solvents, it is widely applied in fungicides and nematicides, transportation fuels, lubricants, resins, a rapid all-weather repair system for potholes and also for wood modification and book preservation. And that’s just the shortlist.

Sweet sensations Cellulose and hemicellulose are complex carbohydrates (polysaccharides) rich in 25

various sugar monomers (building blocks of more complex molecules) which can be extracted during the pulping process. Xylitol is a natural sugar substitute that can be made from xylose, the sugar molecule in hemicellulose. It also has oral health benefits due to its acid neutralising and antibacterial properties and is commonly used in chewing gum. Work to commercialise the manufacture of xylitol in South Africa is already being done by a Pamsa member, and as local demand picks up for these products, other South African mills will be poised to start production. Sawdust and bark can yield high-value speciality chemicals and composites while paper sludge can potentially be converted into NCC, bio-polymers and bio-gas. “We know that these products can be made from wood pulp, but studies are showing that we can also push mill waste streams towards new production channels, instead of landfills,” explains Molony.

Making the circular economy bigger Work is being done by the South African pulp and paper industry through Pamsa’s Process Research Unit and the master’s student programme into biomass beneficiation such as the development of bio-based carbonate derivatives from lignin that can be used in the production of paper, glass and detergents, and exploring the commercial value of forest and mill residues. By extracting more value from a tree, less goes to waste, Molony says. “This opens our sector up to make even more meaningful contributions to sustainable product development and sets up pulp and paper mills as biorefineries. This means we can improve our competitive advantage as a country, and offer innovative careers for young graduates.” “Along with the significant contributions by members’ companies to research and development, Pamsa has partnerships with the universities of Pretoria, Witwatersrand, Zambia Inc Magazine


Stellenbosch, and the North West, as well as the support of the Department of Science and Innovation through the Sector Innovation Fund.� Not only do pulp and paper production add around R3.8bn annually to the South African economy, the growing and harvesting of trees

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and the making and recycling of paper products provide sustainable jobs for thousands of people. And as a result, we keep removing carbon from the atmosphere by planting more trees.

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Charcoal brickets An eco-friendly alternative


In Mumbwa GMA trees are disappearing, fast

By Gaynor Selby

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e had only driven a few hundred meters inside the Mumbwa Game Management Area (GMA), branching off from the M9, the road that leads to Mongu, when we found the first evidence of the destruction – a large charcoal kiln. When our vehicle came to a stop, a man and two young boys making the kiln took to their heels, disappearing behind the tall trees.

Kennedy, one of the game rangers escorting us, counted about 50 fresh stumps of the mutondo tree around the kiln. He wagged his head, more in frustration than in disbelief. The game ranger has now become accustomed to such scenes in this protected swath of forest, which also acts as a buffer zone for the country’s largest wildlife sanctuary – the Kafue National Park, which occupies 22,400km/sq. The Mumbwa GMA is made up of two protected forests known as Mumbwa East and Mumbwa West, sitting on 3,760km/sq of land. About 200m from the charcoal kiln, a man was walking behind a pair of oxen, ploughing a newly

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opened field. And driving deeper into the forest, we made a grim discovery – largescale charcoal production. The largest kiln we found measured three metres wide, 40 metres long and about two metres high.

food ingredients or as bioenergy is emerging as sustainability efforts evolve. Forward-thinking companies are driving green energy strategies throughout their supply chains.

On the edge of a clearing, Felix Mumba was standing by his 60 bags of charcoal. He was waiting for a truck to deliver the bags to Lusaka.

Biochar is dubbed “agriculture’s black gold” and can be used to produce green energy. Image provided by Circular Carbon. In Barry Callebaut’s case, it comes just ahead of the chocolate and cocoa giant’s fourth Forever Chocolate Report, due to be published next week (December 3), which will detail the company’s progress toward its 2025 targets. The company’s Forever Chocolate strategy is all about making sustainable chocolate the norm

He makes about K2,500 profit on each trip, delivering between 150 and 180 bags deforestation continues to have a hugh negative impact on the environment. Unfortunately the high levels of illiteracy and lack of employment are the major drivers of deforestation.

Converting cocoa shells into green energy: Barry Callebaut utilizes agricultural “left-overs” to create valuable biochar Barry Callebaut has started a new eco initiative to upcycle its cocoa shells into biochar, which looks similar to charcoal, supplies green energy, and reduces carbon emissions at the chocolate and cocoa giants’ operations. This is an “industry-first project” that sees the transformation of cocoa by-products into biochar – dubbed “agriculture’s black gold.” It comes as the concept of upcycling byproducts to be used as either 29

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by 2025. It involved finding bold new ways of doing business and bringing partners together to make it happen. The initiative has been two years in the making, and now Barry Callebaut has ramped up the infrastructure to commence producing biochar in one of its European factories. The energy being released by the very efficient pyrolysis process of turning cocoa shells into biochar will be re-used for steam production, thus creating green energy. This energy will be used to help power facilities.

Mitigating climate change “Biochar looks very similar to charcoal and is produced by pyrolysis. In simple terms, this means that biomass, such as agricultural or forest biomass waste, is heated to a very high temperature without oxygen to produce energy and biochar,” explains Geza Toth, global forest and carbon program lead and Neelke Verhelst, global sustainability operations lead. “What is very interesting about biochar is that it can help to mitigate climate change. It can be used to produce energy, permanently store carbon, improve soil quality and reduce waste,” he says. “Using our cocoa shells to produce biochar, will help us with achieving our Forever Chocolate target of becoming carbon positive by 2025. Ultimately, we want to benefit

the climate by creating carbon circularity.”

Biochar as a natural fertilizer on cocoa farms

Barry Callebaut can use the cocoa shells to create green energy in its factories, as a fertilizer enhancer in soil, and as a carbon sink.

Barry Callebaut is also looking into the production of biochar at farm level. In the cocoa origin countries where it sources, biochar can be used on cocoa farms as a natural fertilizer enhancer.

“A simple example of a carbon sink is that while trees can ‘temporarily remove’ carbon from the atmosphere, biochar applied to soil can capture carbon and store it for hundreds of years, thus creating a permanent carbon sink,” Toth details.

“Biochar has a remarkable ability to act like a sponge, so if you mix fertilizer with Biochar, it enables the fertilizer to be very slow releasing,” explains Verhelst.

Neelke Verhelst, globalsSustainability operations lead at Barry Callebaut, explains that at the beginning, the idea of producing biochar was quite conceptual.

“At farm level, instead of using cocoa shells, which will be used at processing level to create green energy, we are looking at creating Biochar from agricultural residues, like empty cocoa pod husks, pruning material and other residues,” she continues.

“However, one of the great benefits of Barry Callebaut is the innovative culture and encouragement to think outside-of-the-box to find creative solutions. We also partnered with Circular Carbon, who provided us with the technical expertise to translate the idea of producing biochar into practical reality.”

“The ultimate goal is to keep biomass on the farm and enhance living soils. By combining the use of biochar with compost, for example, we also reduce methane emissions from the decomposition of farm waste.”

Circular Carbon works with corporate leaders and experts who advocate mitigation of climate change as a business opportunity. This circular economy concept is seeing more brands and companies proactively implementing sustainability at the core of business.

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What is very interesting about biochar is that it can help to mitigate climate change...


Utilizing agricultural ‘left-overs’ to create valuable biochar is a real circular economy business case, which benefits both cocoa farmers and business. To put this into perspective, Verhelst details that the carbon released into the atmosphere from dead plant material and decomposing biomass, globally, is about ten times more than carbon released by fossil fuel burning. “So you can see, there is a very good reason to consider how we can utilize agricultural ‘left-overs’ to create valuable biochar. A real circular economy business case, which benefits both cocoa farmers and business,” she says. Barry Callebaut is collaborating with the Ithaka Institute and currently trialing the use of biochar in the field to evaluate the impacts of improved soil quality. Eventually, it aims to increase cocoa yield, reduce the need for agrochemicals, and ultimately increase farmer livelihoods.

Upcycling on the rise The upcycled food movement is growing more prominent as brands come under intense scrutiny on their environmental and ethical credentials. Transforming waste streams into value-added, premium ingredients is on the rise, and there is 31

an increasing number of projects within the F&B industry. In fact, just last month Barry Callebaut unveiled its newly-created industry category with its Cabosse Naturals brand that utilizes parts of the cacao fruit that have historically been discarded. CP Kelco’s clean label Nutrava Citrus Fiber is sourced from intact citrus peels, a byproduct of the juicing industry, while Renewal Mill specializes in “oat okara” – a nutritious flour made from the oat pulp leftover when oat milk is made. In March, a study from the University of Bari Aldo Moro, Italy, discovered that bread waste destined for dumpsters could be used as a medium for cultivating microbial starters for the food industry. Repurposing the discarded dough from bread production can feed the microorganisms needed to set up fermentation in food industries such as bakeries, dairy and winemaking. Innova Market Insights’ research indicated that 85 percent of, on average, US and UK consumers expected companies to invest in sustainability in 2019, up from 64 percent in 2018. In the area of food waste, upcycling is the new recycling, as companies strive to follow a zero-waste approach by creating value from by-products.

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ZAMBIA

Energy, Mining, Oil

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LATEST study has revealed that Zambia has potential of producing 1,192 megawatts off-grid electricity and 15,797 tera-joules of energy for alternative cooking per year from the bioenergy sector. Ministry of Energy Permanent Secretary Trevor Kaunda said the study revealed that the country has a combined achievable potential of 74 million litres per year of ethanol from molasses and cassava. Mr Kaunda said the study has been undertaken to assist the country in assessing the extent to which sustainable bioenergy can contribute to the current energy mix.

the bioenergy sector necessary for planning and decision-making. “Given this potential, the bioenergy and food security assessment report for Zambia will indeed complement Government’s development efforts and will guide the development of sustainable biomass energy strategies that integrate food security and agricultural needs. “We envisage that the findings of this study will contribute towards increasing access to clean and modern energy in line with the national energy policy 2019

He said in a speech read for him by department of energy acting assistant director Mafayo Ziba that the study has identified unknown potential of 32

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Zambia’s electricity demand is projected to increase by 200 megawatts (MW) per annum, as Government call for concerted efforts from all stakeholders to ensure investments in supply options meet the rising demand. The low rates of access to electricity services coupled with demand for electricity which is projected to increase from 150MW to 200MW presents a huge task for Government, Energy Minister Matthew Nkhuwa said in Lusaka on Tuesday 27th October 2020. He was speaking during the official opening of the Renewable Energy in Zambia conference under the theme “Renewable Energy in Zambia: Opportunities for French and Zambian Companies.” The minister said this also presents an opportunity for the private sector to invest and tap into the many opportunities in Zambia’s power market and contribute to the achievement of set targets of electrification. “This scenario calls for concerted efforts from all stakeholders to ensure investments in supply options meet this increasing demand for sustainable energy services.” Mr. Nkhuwa said. Currently, the country’s demand for electricity stands at 2,300 MW. The minister however said the sector was only able to produce 1,490MW thus giving a deficit of 810MW. Mr. Nkhuwa said this situation resulted from limited investment over the years, stating that the deficit had been worsened by the effects of climate change on availability of water, considering that Zambia was highly dependent on hydro power. He said Government had prioritized the energy sector as key driver for socioeconomic development and a key tool in addressing developmental inequalities in rural areas. “We are committed to creating an enabling environment that encourages private sector investments in Energy infrastructure as evidenced by the approval of the National |Energy Policy of 2029 which ushered the enactment of the Electricity Act No.11 of 2019 and the Energy Regulation Act No.12 of 3019” he said. Government would continue to enhance the policy and regulatory framework in order to foster investments in the energy sector for accelerated development and provision of electricity services throughout the country. Zambia’s ambassador to France, Christine Kaseba Sata, said COVID-19 had derailed a lot of opportunities that affected the growth of economies. Dr, Kaseba Sata said the pandemic should however not stop businesses from forming partnerships to drive growth. She indicated that there were currently 40 French companies operating in Zambia with most of them investing in the energy sector. “I believe that this forum will give us the opportunity to access the potential of renewable energy in Zambia. It is anticipated that renewable energy will lead Zambia’s energy sector. “The energy outlook for Zambia looks bright. We will continue as a mission to foster public and private sector with opportunities being offered in Zambia.” She added. Outgoing French ambassador to Zambia Sylvain Berger expressed confidence that his country would expand its energy sector with enhanced investments in renewable energy. Mr. Berger said the French Government was interested in helping Zambia address its energy challenges

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Monitor the use of POWER at home

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Mining equipment at Kansanshi mine in North Western Province of Zambia.

LME Copper hits 8yr high, the new ‘Copperbelt of Africa’ to drive Zambia’s economic

recovery

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upply angst as a consequence of suppressed production possibilities in South America as COVID cases persist while a simultaneous demand surge for the metal used in electric wire manufacture globally, has sent copper prices to 8year highs. Copper on the London Metal Exchange – LME has rallied 75% from March $4,343 a tonne lows when disease pandemic hit China the hardest resting in acute supply disruptions. Trading for $7,677 a tonne on the London commodity bourse, the red metal recovery has brightened prospects for producing nations such as the Democratic Republic 37

of Congo – DRC and Zambia which shuld be able to leverage off the risk on rally to balance their fiscal positions after a tough year dented by corona virus effects. The supply side continues to be weighed by decongestion of mines due to health protocols to curb COVID spread in the South American mines while the demand side has been propelled by an array of factors to include greenfield projects such as the electric car era prospects that will require copper wire production to transmit charge, a quicker

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rebound in factory activity in China and general recovery in global business pulse evidenced by prints above 50 as measured by purchasing managers index. Copper continues to be used as a bell weather for global economic pulse. Vaccine breakthrough also contributing to base metal demand. The world is risk-on with appetite for riskier appetite growing following news around COVID vaccines such as Moderna, AstraZeneca, Oxford and BioNtech that have proved to be upto 95% effective. The world has sought this breakthrough which has shaped year end fortunes pricing hope into a fragile global economy. Demand for riskier assets includes that for base metals such as copper which remains the worlds barometer for global pulse whose spike in price reflects growth expectations which have in turn taken away gold shine and dollar asset demand. The copper producers debt quagmire. Zambia, Africa’s second largest copper hotspot has so far produced 646,111 tonnes as at September up from 590,321 tonnes last year representing a 9.5% increase year on year according to Mines Minister Richard Musukwa. The copper producer faces debt repayment hurdles with various creditor classes including dollar bond holders, Chinese banks and other commercial lenders. Recently, the Southern African nation could not make good a $42.5million coupon payment on a 2024 Eurobond in what it called a treatment of all its creditors ‘pari-passu’ to mitigate complicating debt deferment negotiations with Chinese creditors. With fiscal fragilities and balance sheet vulnerabilities, the rating agencies lowered Zambia’s credit assessment to selective default (SD) for Standards and Poor’s while the Southern African nation is rated ‘Ca’ for Moodys. 38

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Zambia’s debt stands at $11.97billion of which $3billion relates to Eurobonds maturing in 2022, 2024 and 2027 respectively. The red metal producer has been a beneficiary of debt deferment b y Paris Club to June 2021 nodded by the G20 and is yet to tap into the $81million reprieve on interest payment. At the recently ended G20 summit, a new twist to Chinese debt workaround through the Paris Club was agreed on while the World Bank and Washington based lender the International Monetary Fund warned against the 20 nation block doing too little to address debt burden of emerging markets (EM’s). As a result of default and thereof perceived wane in sentiment, asset and currency sell-off pressure have mounted adding transfer and convertibility (T&C) risk burden to the operating environment.

The new Copperbelt of Africa to drive Zambia’s recovery. Zambia’s economic recovery path is still strongly linked to the mining sector whose prospects remain bright especially with key projects underway in the North Western part of the country dubbed the new ‘Copperbelt of Africa.’ A surge in prices on the London Metal Exchange – LME to levels last seen 8years ago spells stronger earnings capacity for Zambian mines entailing higher tax revenue base for the authorities to meet their debt repayment burdens. Two billion ($2billion) worth of projects are on the cards namely the Lubambe and Kansanshi S3 mines which will be game changers for Zambia between the 2024-2028 periods. However, the mines still bemoan the mineral royalty non – tax deductibility a double taxation methodology that entails tax applied at both production and income level which therefore constrains the mining industries propensity to invest in both exploration and expansion.

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Gold detecting device


At a recently held Economics Association of Zambia Indaba dubbed The Way Forward for Zambia Post Default, the Chamber of Mines said the mines were ready to help drive Zambia’s ‘V’ shaped recovery but this would come at a cost. Chamber of Mines Chief Executive Officer – Sokwani Chilembo said the mines were more interested in a stable value added tax (VAT) cycle than a central bank Targeted Medium Term Refinance Facility, a reform in the tax regime away from non – tax deductibility of mineral royalties and policy stability. These three factors would improve the investment climate of the sector in its quest to increase production to surpass the DRC. Asides the mines, the supply chain was also key in boosting economic activity.

Infrastructure a boost in mining logistics Infrastructure is a key component in supporting logistics for the mining sectors especially in turbulent economic times as Zambia is in. The newly commissioned Kazungula bridge has since improved traffic flow on the Southern African corridor while the country explores other routes to such to ports of Dar-es- salaam and Lobito bay given the challenges on the South African corridor faced with periodic purported xenophobic attacks on trucks. There is need for projects such as the North Western Rail to be expedited to allow for ports like Lobito bay in Angola to be easily accessible while investment in rail infrastructure and equipment is urgent to actualize the Statutory Instrument Number 7 that seeks to decongest the road networks yet encourage use of rail for upto 30% bulk cargo from 5-8% prior levels. The North Western province surface mines are the future of Zambia’s mining production compared to aging assets that have lower copper grades underground in the Copperbelt province. The offer higher ore grades and are more attractive. Despite energy woes the country faces, power supply to the mines for smelting purposes and water pumping has remained untempered with. With the 750MW Kafue Gorge Lower (KGL) set to complete by 1H21, 42

mining prospects will receive a boost in outlook coupled with well positioned smelting capacity of concentrates at Mopani Copper Mines, Kansanshi Copper Mine, Chambeshi Metals and Konkola Copper Mine. Psychologically, it is expected that most functional mines will ramp-up production to tap into the copper price rally curve and when this happens, benefits will trickle to the treasury chest to help with not only improving cash flow position of the state but will also shore up foreign exchange reserves for which Zambia depends on mining for 75% of its flows. The Economics Association of Zambia in its presentation at the Indaba cited the need for dollar flows from mining taxes currently paid directly to the authorities to be channeled through the foreign exchange market as it would help address the current backlogs the market faces. Dollarization of mining taxes and paying directly to the authorities addresses foreign currency supply needs of government yet sucks 45-55% of dollars from the open market causing imbalances in the market, the EAZ cited.

Mining sentiment still fragile Zambia’s mining sentiment still grapples with downside risk such as litigation on going for Vedanta’s Konkola Copper Mine (KCM) after liquidation proceedings were commenced by ZCCM-IH and the future of Glencore’s Mopani Copper Mine (MCM) after a stalemate on its attempt to place the mine on care and maintenance leading to the majority shareholder opting to sell its its shareholding to the Zambian government. Recently the court of appeal prescribed that parties go the arbitration route overruled an earlier high court judgement on liquidation proceedings commenced against KCM. The Mines Ministry hinted that it would be concluding the Mopani takeover in a months time though the mode of finance was vague.

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MINERS processing copper at one of the mines on the Copperbelt.

COPPER MINING 43

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Manufacturing

Virtual Manufacturing Indaba to gather experts from across

Africa

Leading figures within sub-Saharan Africa’s manufacturing sector will convene virtually at the Manufacturing Indaba 2020 - taking place online between 9-10 December - to debate pressing issues impacting the region’s industrial landscape.

Due to safety concerns and restrictions resulting from the Covid-19 pandemic, the event is being held virtually, at no cost to attendees, to allow companies and clients to interact safely with each other and keep their business goals on track. All the Provincial Manufacturing Indaba events and the East Africa edition have been postponed to the second half of 2021.

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Discussions will underscore the manufacturing sector’s innovations, leveraging special economic zones for African industrialization and integration, exploring near and long-term prospects for technological advancements such as the implementation of Industry 4.0 and where digitalization plays a more prominent role. The Manufacturing Indaba will steer a host of dialogues focused on key issues impacting manufacturing, especially with the advent of the pandemic globally. Some of the confirmed speakers who will exchange perspectives at the conference include: • Francisco Betti, World Economic Forum, Geneva • Roseta Mwape-Chabala, Metal Fabricators of Zambia (ZAMEFA) • Mmantlha Sankoloba, Botswana Exporters & Manufacturers Association • Kaashifah Beukes, Saldanha Bay Industrial Development Zone • David Romero, Tecnológico de Monterrey, Mexico • Sherrie Donaldson, African Innovators • Dr. Kamau Gachigi, Gearbox, Kenya • Lerato Mataboge, Department of Trade, Industry and Competition • Ally Angula, Leap Holdings, Namibia Some of the key issues that will be discussed at the 2020 Virtual Conference include: • How to future proof your manufacturing business - What does the future of African manufacturing look like in a current and post Covid-19 world? • The Africa Continental Free Trade Agreement and what does this mean for African manufacturers - How does this influence trade agreements, customs tariffs, tax, etc. to create an African marketplace? • Lessons learned on the journey to manufacturing excellence and how to have a sustainable and profitable manufacturing business in the era of Covid-19. • The growing importance of localization - How can we build our own local markets to sustain ourselves and grow our local economies in Africa? “Even though the event will be hosted virtually, the conference is still leveraging the benefits of innovative practices, where it will still continue hosting the one of a kind ‘Business Matchmaking’ system, providing exhibitors with the opportunity to connect with influencers pertinent to their individual profiles and goals. Manufacturers cannot afford to miss this event, with over 1,300 registered conference delegates to date, the demand for manufacturing knowledge and information sharing is even more critical to survive the impact of Covid-19 on industry,” says Liz Hart, MD of the Manufacturing Indaba.

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Loryma debuts wheat protein “ chicken breast” strips for on--the---go convenience

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oryma has introduced a vegan chicken breast product, presenting a new option for ready-to-eat refrigerated applications. The move comes as consumer demand for ready-to-eat chilled snacks grows steadily. The Lory Tex Chunks, made from structured wheat protein, offer an appealing appearance and texture, the company reveals. Whether eaten cold or heated, products such as bowls, salads and wraps are often enhanced with meat-based toppings, such as grilled fillet strips. “Plant-based food altogether is constantly rising as the urgent need for an ecological balance has very much come into the public consciousness,” Henrik Hetzer, managing director of Loryma, tells FoodIngredientsFirst.

Convenience prevails Especially given the situation around COVID-19, eating in restaurants and at work has declined, and there has been a surge in the number of people dining at home. “As a result, ready-to-eat meals are trendy,” Hetzer notes. Whether used as a salad topping, a filling or eaten hot from the pan or oven, the vegetable fillets demonstrate optimal interaction of functional binding and structured wheat protein, he continues.

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Convenience products such as bowls, salads and wraps are often enhanced with meat-based toppings. Consumers are not only looking for meatfree alternatives, but they also seek tasty products with the right texture that creates an authentic mouthfeel, Hetzer notes.

and thus help prevent food waste, flags Hetzer. “Wheat ingredients can increase the protein content of the final product, while the carbohydrate content decreases. Wheat texturates are therefore perfectly suited to the trend toward health-conscious lowcarb or high-protein products,” he continues.

Besides its uses in convenience food, these ingredients can serve industry in a wide range of other applications, including confectionery and baked goods.

“Doing without animal protein does not reduce the nutritional value. The mix of different vegetable proteins provides the human body with an equivalent supply of essential amino acids.” Wheat above the rest

Appeasing all the senses Functional wheat-based raw materials allow for creating meat alternatives that are convincing in sensory perception and taste. They are also suitable for a wide range of applications thanks to simple production processes. The processing of a vegan chicken breast does not differ much from the meat version, according to Loryma.

Wheat has previously shown potential in the plantbased movement. With regards to sustainability, it also is beneficial as a crop. “An advantage of wheat is the bio-dynamic value of the original agricultural product. Wheat is a sustainable raw material, which is multifunctional,” explains Hetzer.

First, dry Lory Tex Chunks are soaked in water and individually seasoned, with the textured wheat protein replicating the authentic meat structure. The rehydrated chunks are then shredded and mixed with vegetable oil and the wheat-based binding agent Lory Bind to form a homogenous mass in an “all-in” process. This mass can then be individually processed, just like the meat variant, and is usually filled into sterile casings. It is then cooked before being removed from the casing and pre-portioned. The fillet can be grilled or deep-fried as strips, nuggets, slices or cubes, and the finished product used in the same way as real cooked chicken breast.

Bolstered nutritional value In industrially produced foods, texturized wheat proteins optimize nutritional value, extend shelf life 48

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Wheat-based ingredients can also serve industry in a wide range of other applications, including confectionery and baked goods, says Loryma. The wheat starch industry achieves almost complete recycling with a yield of 99 percent, he says. Due to its regional availability, there are low transport emissions, and during growth, the plants bind large amounts of CO2.

Growing EU wheat Wheat is cultivated worldwide on around 220 million hectares, making it the most important crop globally, Hetzer comments. “However, all plants must be able to cope with changing climatic conditions,” he stresses. Research is being conducted to make wheat varieties more resistant to climate change. In principle, availability is not at risk. However, the quality of the wheat – for example, yield and nutritional value in terms of starch and protein – depends on the climate and soil conditions. To ensure consistent product quality, Loryma uses 100 percent EU wheat, at least 75 percent of which comes from Germany. “Within this range, we make use of the diversity of growing regions and varieties. This consistent product quality is important for our customers to ensure the safe processing of their endproducts,” Hetzer concludes. By Elizabeth Green

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SINGAPORE grants “world’s first” approval for sale of Eat Just’s cultured meat By Benjamin Ferrer

Cultured chicken meat from Eat Just has been greenlighted for sale in Singapore as an ingredient in chicken bites. The island nation is the first to give the go-ahead to meat being grown in a lab. It follows a rigorous consultation and review process by the Singapore Food Agency (SFA). This approval is anticipated to be the “first of many” for similar lab-grown meat businesses in Singapore and in countries around the globe. However, US and European approval of cultured meat could be some way off.

of scientists, product developers and regulatory experts prepared extensive documentation on the characterization of its cultured chicken and the production process, the company notes. The company included details on the purity, identity and stability of chicken cells during manufacturing, as well as a detailed description of its production process. This demonstrated that harvested cultured chicken met quality controls and Singapore’s rigorous food safety monitoring system.

SFA’s approval further paves the way for a forthcoming small-scale commercial launch in Singapore of Eat Just’s new GOOD Meat brand. Details on this rollout will be disclosed at a later date. At present, the company has developed other labgrown chicken formats that will be an extension to this product line. Food Ingredients First reached out to Eat Just for further insights into the company’s road to commercialization.

Eating clean from a petri dish Over the course of many months, Eat Just’s team 50

The analysis demonstrated that cultured chicken contains a high protein content, diversified amino acid composition, healthy monounsaturated fats

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and a rich source of minerals. Eat Just has demonstrated a consistent manufacturing process of its cultured chicken by running over 20 production runs in 1,200 L bioreactors. No antibiotics are used in this proprietary process.

In other developments, Singapore-based venture capital firm and business accelerator Big Idea Ventures attracted more investors to its alternative protein fund, including Bühler, Tyson and Temasek.

Safety and quality validations demonstrated that harvested cultured chicken met the standards of poultry meat, with “extremely low and significantly cleaner” microbiological content than conventional chicken.

Just yesterday, we reported how a new project aims to remove the need for animal-derived products completely and instead upcycle existing agro-industrial by-products to be used as a growth media for culturing meat cells in a lab environment.

The analysis also demonstrated that cultured chicken contains a high protein content, diversified amino acid composition, high relative content in healthy monounsaturated fats and a rich source of minerals.

UK-based CPI technology innovation center is partnering with 3D Bio-Tissues (3DBT) – a spin-out of Newcastle University – to develop a new kind of improved growth media, one that is “truly animal-free.”

In addition, Eat Just’s cultured chicken was confirmed to be safe and nutritious for human consumption by an outside panel of international scientific authorities in Singapore and the US, with expertise in medicine, toxicology, allergenicity, cell biology and food safety.

Growing meat to save the planet

Concurrent to the consultation and review period, Eat Just formed strategic partnerships with local manufacturers in Singapore to produce cultured chicken cells and formulate the finished product ahead of its first sale to a restaurant and initial availability to consumers.

A hub for cellular agriculture

Today’s announcement is Eat Just’s second in Singapore this year. In October, the company announced a partnership with a consortium led by Proterra Investment Partners Asia, an investment management firm focused on the food and agribusiness sectors. Through this partnership, the company will build and operate a plant protein production facility in Singapore to meet demand for Eat Just’s plant-based JUST Egg products across Asia. “Singapore has long been a leader in innovation of all kinds, from information technology to biologics to now leading the world in building a healthier, safer food system,” says Josh Tetrick, co-founder and CEO of Eat Just. The “garden city” has been leading the charge in Asia’s alternative protein development. This year, Singaporean cellular agriculture player Shiok Meats announced its US$12.6 million Series A funding round for the scaling up of cell-based shrimp meat.

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Meat production has risen dramatically, and by 2050, consumption is projected to increase over 70 percent, flags Eat Just. The company stresses that major public health crises in the past have been linked to patterns of conventional meat consumption. Within this context, cultured meat’s role in creating a safer, more secure global food supply has been increasingly highlighted. The last year has seen a steady rise in the application of animal cell culture technology toward the development of food products. Yet many current methods of producing cultured meat are still expensive – producing low yields and involving the use of animal-derived fetal bovine serum. Among developments in this dynamic space, Israeli startup is heading toward transferring its thin-cut, lab-grown beef steaks into a proprietary platform suitable for mass cultivation. In a recent interview with FoodIngredientsFirst, Didier Toubia, Aleph Farm’s co-founder and CEO, detailed the company’s latest ambitions to supply cultivated meat for deep-space explorations. Meanwhile, recent analysis has indicated substantial potential markets for cultured meat and the general movement toward reduced-meat diets across the globe, particularly in Germany and France. The wider European market is expected to demonstrate similar trends into the coming years.

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TRAVEL INC Planning a road trip in a pandemic? 11 tips for before you leave, on the road and when you arrive

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s restrictions ease around the country and the prospect of travel beckons, many of us will be planning road trips for the holiday season. To ensure your trip is memorable in the best rather than the worst way, here are some things you and your fellow travellers can do to reduce the risk of becoming infected with, or spreading, Covid on your trip.

Before you go .. 1. Check for any travel or other Covid-specific restrictions or rules in the areas you will be travelling through or to, before you go. These can change rapidly and may include restrictions on how far you can travel, how many people per square metre are allowed in public spaces, and whether you need border passes or to wear a mask. Each state or territory has its own health department or government Covid website you can check.

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2. Don’t take Covid with you. If anyone in your group has Covid-like symptoms, however mild, it is important to be tested and cleared for Covid before leaving. Common symptoms may include fever or chills, muscle aches, sore throat, cough, runny nose, difficulty breathing, new loss of taste or smell, and vomiting or diarrhoea. 3. Pack masks, disinfectant wipes and hand sanitiser. The two most likely ways of catching Covid are inhaling viral particles an infected person sheds when they cough, sneeze, laugh, talk or breathe; and ingesting particles by touching contaminated objects and then touching your face or food. Masks (and social distancing) can help reduce the former risk, while avoiding touching your face, frequent hand hygiene and cleaning surfaces can reduce the latter. So pack masks, wipes and hand sanitiser. Hand sanitiser should contain at least 60% alcohol. 4. Pack your own pillows and linen. We know people infected with SARS-CoV-2, the virus that causes Covid, can shed virus onto linen and pillows (and other surfaces), even when asymptomatic. We also know respiratory viruses can penetrate pillow covers and get into the microfibre stuffing. So you might want to consider bringing your own pillows and linen.

On your trip 5. Use disinfectant wipes to clean high-touch surfaces in your hire car. These would include door and window handles or buttons, light switches, seat adjuster controls, radio controls, the steering wheel, glove box button, gear/drive and handbrake levers, rear-view mirrors and mirror controls. 6. How about singing in the car? The more vigorous the activity, the greater the opportunity to release droplets and aerosols and the further these will travel. So, laughing and singing will release more of these than talking, and talking will release more than breathing. However, if you are travelling in a family group, or with your housemates, then you have been in close contact with one another at home and the additional risk would be low. 7. Maintain social distancing at service stations. Leave at least 1.5 metres between you and the next person while paying for fuel, ordering food and when using the bathroom. Make sure you wash or sanitise your hands after touching surfaces such as petrol pumps, door handles, bathroom taps, and before getting back in your car.

Wash or sanitize your hands after using the petrol pump.

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8. Pay with cards rather than cash to avoid touching money. Many people can handle bills and coins over a long duration of time, providing many opportunities to transfer disease-causing microbes from one person to the next. Using contactless payment also helps maintain social distancing. 9. It’s safer to eat outdoors than indoors if stopping for a snack or lunch. That’s because large volumes of air dilute the density of viral particles in the air. Evidence from a study of Covid clusters in Japan suggests the chance of transmitting Covid is more than 18 times higher inside than outside.

When you arrive 10. Is your hotel or rented accommodation Covid-safe? Ask the accommodation provider what steps they have taken to make the place less conducive to spreading Covid. For example, have they introduced extra cleaning or disinfection? 11. Use disinfectant wipes in rented accommodation to clean high-touch surfaces such as door handles, light switches, cupboard handles, taps and toilet flush buttons. You can also put dishes and cutlery through the dishwasher on a hot cycle. This is because the virus can remain viable (able to cause infection) on surfaces for many days. Following these simple steps can help to keep your trip memorable in the best possible way.

Happy holidays!

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2021




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