Food Magazine August 2012

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Foodmagazine INGREDIENTS | PROCESSING | SAFETY | PACKAGING | EXPORT

INFORMING FOOD AND BEVERAGE MANUFACTURERS

AUGUST 12

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INSIDE

PREPARED FOODS 13 The rapid increase of ethnic food options in Australia

PET FOODS

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HEALTH

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NZ FOCUS

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WHAT'S FRESH

THE NEW SICILY

Authentic Italian tastes for Aussie consumers on Page 8

Looking after nutrition for the next generation

Foodtech Packtech coming soon to Auckland

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WELCOME

Foodmagazine

www.foodmag.com.au ASSOCIATE PUBLISHER – Martin Sinclair E: martin.sinclair@reedbusiness.com.au

Paddock to plate Australia has arguably the best food industry in the world, and we need to work to keep that position.

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While the advancements in Summit was born. h my, it has been a very the ways in which we retrieve Because we believe there is busy couple of months these foods and manufacture almost no better way to start indeed at Food Mag HQ! them are the reason we have working towards finding some Our 8th annual Food Magazine flourished as we have in the solutions for these problems than Awards, which saw more than 90 arena, we can’t actually take all to get people from all different entries in the 14 categories, slowly the credit. parts of the food industry to sit began to take shape and develop, Because just like our famous around a table and talk about them. and by the time this magazine beaches, which we also can’t From the farmer to the grocery goes to print, our winners will take all the glory for, we were buyer, with the manufacturers, have been announced at the gala blessed with an abundance of packaging and health experts in dinner in Sydney. prime agricultural land, perfect between, no one link in the chain is We also planned (and for growing plant foods and any more important than another. somehow managed to execute) EDITOR: Jessica Burke raising animals. It would be And only through working our inaugural Food Magazine food@reedbusiness.com.au a travesty for us to take this together, collaborating with Leaders Summit. blessing for granted and not use honesty and transparency, can After unprecedented time it to our absolute advantage, we ensure our food industry will spent planning, countless and not continue to fight for our be here for generations to come. meetings and zillions of food industry, which is arguably Australia does many things phone calls, we welcomed our the best in the world. well. We’re not too shabby participants to our offices on Together, we can make on the cricketing world stage, June 26 to talk about some of things happen. We can motivate we come up with fantastic the most pressing concerns of governments and companies to inventions like the hills hoist and the industry and how we can all work together to strive towards positive change.

What we are really, truly fantastic at is Because one of the things growing and producing quality food. that really sticks out to me, as change. We can inspire people the ute, and thousands around the someone who reports daily on to join this industry so that world are living better (or at all) the different parts of the food Australia actually has a food today thanks to the Pacemaker and packaging industries, is industry to rely on in a decade and Cochlear Implant, both that so many of the current or two.

Aussie developments. problems that each sector thinks But we have to make it But what we are really, truly is exclusive to them, are in fact happen, because it won’t just do 1 2 . pdf P a g e 1 2 4 /experienced 0 7 / 1 2by , almost 1 0 all : 2other 8 A M fantastic at is growing and so on its own. producing quality food. sectors. And so the Leaders

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WHAT'S HOT ONLINE

Private Label will damage our business: Four 'N' Twenty pie maker

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The supermarket price wars have had many victims, and the latest to be impacted by the ruthless competition that is squeezing food companies out of business is iconic Aussie pie maker Four 'N' Twenty.

The makers of Four 'N' Twenty pies, Patties Foods, which also manufactures Herbert Adams and Nanna’s brands, said the increase in private label will hurt its business, mostly likely beginning this year.

The pie maker predicts that in the second half of 2012, it will face much tougher trading conditions, as private label offering from Woolworths and Coles increase in numbers, pushing established brands off the shelves.

Both supermarkets have confirmed plans to rapidly increase private label products in the coming years, and as they do so, other manufacturers are seeing their products moved from prime positions on shelves, and disappearing altogether.

Very few manufacturers will speak on the record about the impact of the supermarket price wars, for fear their deletion from shelves will be speeded up if they do.

Even the Senate Inquiry investigating the power of the big two struggled to get people to speak, which is indicative of the power they wield over manufacturers and suppliers.

The few who will speak either speak out anonymously, or once they can no longer be punished, as was the case with the exiting chief executive of the Wine Federation Australia, Stephen Strachan,criticised the supermarkets' power only when he had stepped down from the post.

"If you're an individual company that speaks out against them or says anything publicly that criticises their tactics, they would have no hesitation in giving you a holiday from their shelves and that is what’s creating a culture of fear and compliance in the industry," Strachan said.

"Whenever I've made comments in the press, I could only talk about retailers in a generic sense, but they [Coles and Woolworths] would religiously follow up on those comments and make it known

BY JESSICA BURKE

Rocklea Road ahead: Darrell Lea in administration

The largest Australian confectionary retailer, Darrell Lea has gone into voluntary administration.

The company was founded in 1927 and employs about 700 people across its Sydney-based manufacturing facility and its retail network encompassing 1800 retail outlets and 69 licensed and owned stores across Australia, New Zealand and the US. Mark Robinson, Jack Bournelis and Daniel Walley of PPB Advisory have been appointed as Voluntary Administrators of the business, following an ongoing review of the business by Directors over Darrell Lea’s ability to meet its ongoing financial obligations.

“We are undertaking an urgent review of the business with a view to preparing Darrell Lea for sale as a going concern,” Robinson said.

“The owners of the business have agreed to provide some short term financial support whilst we undertake this process.

“We will work with all stakeholders including employees and their representatives, licensees, customers and suppliers to ensure the business continues to operate effectively.”

Duck supplier headed to court over misleading ‘free range’ claims Australia’s largest duck producer is being sued for misleading advertising which claimed the birds were raised in ‘open range’ farms.

Activists filmed the birds at Pepe’s Ducks, showing not only that they were crammed into metal crates, but also that some of them were covered in faeces and had their wings stuck in the metal grates,

despite labelling claiming they were “grown nature’s way.”

The label also featured a duck walking across expansive land towards a pond, indicating the animals were raised in such environments.

The Australian Competition and Consumer Commission (ACCC) has slammed the company for the false advertising, demanding correction notices be published and an injunction against Pepe’s Ducks using the free range labels again for the next three years.

In the writ filed in the Federal Court, it said Pepe’s Ducks contravened trade laws by advertising their duck meat as ‘’Grown Nature’s Way’’ and indicating that the ducks ‘’were allowed to spend at least a substantial amount of their time with access to an outdoor body of water … foraging for food outdoors’’, and were of better quality than barn-raised ducks

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they were displeased."

Despite the pressure from the supermarkets, Patties has managed to continue to grow, mainly due to other more traditional pie outlets.

The company expects the 2012 financial year will deliver a net profit of between $19.2 million and $19.7 million, up from $18.4 in 2011.

Second-half net profit will almost definitely remain the same as the same period last year, however, showing the beginning of a decline in profits.

When Patties Foods released its 2012 first-half results it expected that, despite the difficult conditions, it was still expecting improved profits for the second half.

"The second half saw increasing pressure on margins in the In Home (supermarket) channel, particularly with the continued growth of private label products," Patties said in a statement to the Australian Stock Exchange (ASX).

Managing director Greg Bourke said the company has been working hard on driving strong sales growth, and has increased manufacturing efficiencies maintained tight control over costs to achieve its results.

when ‘’that was not the case’’.

Animal Liberation’s Emma Hurst welcomed the suggestions from the ACCC and also called on the RSPCA to urgently investigate the welfare conditions at another leading Victorian supplier, Luv-a-Duck. ‘’There are equal concerns for the welfare of ducks that are kept at Luv-aDuck,’’ she said. ‘’We are seeing ducks on their backs, we’re seeing ducks smattered with waste, and we are seeing issues such as crustyeye, which is caused by the fact that the ducks can’t dip their eyes in water, so the eye actually cakes over with dirt.

“They can’t adequately clean themselves and that can lead to blindness.’’

Pictures of ducks in distress, which Hurst said were taken at Luv-A-Duck’s farms, should be taken seriously, she said.

But the company has hit back, saying it should be left alone because it does not claim its ducks are free-range.

The shocking conditions the animals are kept in were uncovered earlier this year when Animal Liberation sent footage to the ACCC. Pepe’s Ducks slaughters more than 70 000 birds every week and the founder was runner-up farmer of the year in the New South Wales Farmers Association in 2010.

The incident follows similar issues in the chicken industry earlier this year, when national suppliers were also accused of misleading consumers by claiming they were ‘free to roam.’

Farmers and suppliers who produce actual free range eggs called for a crackdown on the definitions of ‘free range, following the discovery of the false claims.

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Nestlé invests in company making drinks for Alzheimer’s patients Nestlé SA has bought a significant stake in a company that produces a drink to improve Alzheimer’s disease.

Best known for it’s confectionary, snack foods, coffee and chocolate drinks, Nestlé has been exploring new avenues lately.

In Australia, the company has partnered with Arthritis Australia and government agencies to improve the accessibility of its packaging.

One in two Australians struggles to open packaging, and the ageing population will see many elderly people staying home instead of going into care, which is dependant on them being able to feed themselves.

Nestlé’s latest venture is a significant stake in Accera, a biotechnology company involved in “medical foods development” including the production of Axona, a prescription-based milkshake-type drink meant to manage and improve symptoms of mild to moderate Alzheimer’s disease.

The company has not confirmed the dollar amount it has invested in Accera, but it was enough to get a Nestlé seat on the Accera board of directors, according to the Wall Street Journal, which also reports that Nestlé has plans to invest up to $500 million over the next ten years in health-related foods and drinks like Axona.

Last year Nestlé set up a subsidiary of its business, Nestlé Health Science, and the latest acquisition is part of that branch.

“The significance of this is not the size of the investment, but the fact that it is our first step in developing our brain health portfolio,” Luis Cantarell, president and chief executive of Nestlé Health Science said.

Workers don’t want to keep jobs here: Simplot boss The promise of receiving a sizeable redundancy payout is changing the scope of the working world, and according to Simplot boss Tom O’Brien, 20 per cent of his workers want processing plants to close for this reason.

As one of Australia’s largest food processors, Simplot works hard to stay afloat in the tough retail environment, but O’Brien has told Business Spectator and ABC News that the workers don’t even want to fight for the company and their jobs.

He believes big redundancy payouts are what is encouraging workers to stay in the one company, and that they are detrimental to the food processing industry in its current state.

“Every food manufacturer in Australia is getting ready to close plants in one form or another, it’s just a matter of when,” he said.

“We’re getting no price increases whatsover, we’ve got the cost of nontradeables growing rapidly in the market.

“The cost of power and water and everything else is just going up astronomically.”

But John Short from the Australian Manufacturing Workers Union (AMWU), which represents the workers at Simplot’s Davenport and Ulverstone plants in Tasmania, has slammed O’Brien’s comments, arguing workers do want to keep their jobs.

“I think it’s very disappointing. I don’t know who he’s talking to, but the people we talk to are very much dedicated and committed to the company,” he said.

“They don’t want to see the jobs lost there.

“When we talk to people, they’re the opposite.

“They want permanent jobs.”

“Dictatorchip” over: Olympic committee overturns ban on non-Maccas chips The Olympic Committee has overturned a ban on outlets at the games serving chips, which was deemed to be a breach of the sponsorship deal with McDonald’s.

The fast food chain, and its famous fries, won a fight last week to ban all other chips being served on their own.

McDonald’s demanded that they could be the only ones to serve chips at any Olympic venue and that the other 800 Olympic eateries could sell chips only when served with fish.

The other outlets were immediately up in arms over the decision, and a sign in a catering area in the Olympic Park made their displeasure obvious.

“Please understand this is not the decision of the staff who are serving up your meals who, given the choice, would gladly give it to you, however they are not allowed to,” the sign read.

“Please do not give the staff grief, this will only lead to us removing fish and chips completely.”

Now the London Organising Committee of the Olympic and Paralympic Games (LOCOG) has announced that it has overturned the decision, with a spokesman confirming the “dictatorchip” has been brought

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to an end and chips can now be served alongside chicken, pies and on their own.

“It’s sorted,” he said.

“We have spoken to McDonald’s about it.”

Govt outlined plan to improve food industry

Inghams Enterprises to be sold Major Australian poultry business Inghams Enterprises will go up for sale this year.

The only shareholder of the company, Bob Ingham, announced that he is preparing the company for sale, after careful consideration.

"My decision marks the next phase for the successful ongoing development of the company and is one that I, as sole shareholder, have considered for a number of years," he said.

The company is believed to have made sales of more than $2 billion in the last financial year.

Inghams produces a range of fresh and processed poultry products, as well as animal stock feed, and holds a 35 per cent share of Australia's chicken and turkey market.

The company has predicted that the sale will not result in any job losses for its 9000 employees, but

A new government report has defended foreign investment in prime Australian agricultural land, and argued that the only way forward for the country is to embrace the rising Asian middle class.

The green paper for the National Food Plan has forecasted a rise of almost 80 percent rise in demand for food by 2050 and believes Australia should embrace the opportunity.

The middle classes around the world will increase to almost 5 billion by 2050, 85 per cent of which will be in Asia.

Communist Party wants to buy the entire Prime Minister Julia Gillard Ord Expansion Development in the north announced in May that Australia should of Australia. gear towards becoming the ‘Asian But the government maintains that foodbowl,” but farmers and agricultural investment, foreign or otherwise, is experts slammed the suggestions, saying crucial for Australia’s economy. current regulation is hindering the ‘’Any reduction in foreign investment in industry rather than helping it. the agricultural sector would likely result There have also been calls for a public in lower food production with potentially register of all investment in Australian higher food prices, lower employment, farming land and companies, which were onlyAspurred byOrevelations D _ F on DC R A U G _in 1May 2 . p d f lower P aincomes g e in 1 the2sector 0 / and 0 7lower / 1 2 , government revenue,’’ the paper says. that a company owned by the Chinese

ultimately that decision will depend on the buyer.

Investec Bank (Australia) has been tasked with managing the search for a new buyer, but no decisions have been made about the type of buyer they are after.

There has apparently been some interest from several overseas buyers, as well as Australian bakery companies.

Inghams has confirmed that daily operations will continue as usual under chief executive Kevin McBain.

The paper also acknowledges the confliction between farming and coal seam gas mining, and the importance of finding a compromise between them. ‘’The government is confident that mining and farming can co-exist without affecting Australia’s food production capacity but recognises land use planning is a significant policy issue that must be considered carefully.’’ that a forum between 3 : It 2 also 4 suggests PM the supermarkets and manufacturers

needs to be established, to improve strained relationships cause by the supermarket duopoly.

And while the Australian Food and Grocery Council (AFGC) believes its Responsible Marketing to Children Initiative (RMCI) has been successful at reducing the number of advertisements for junk food directed at children, the report suggests these voluntary standards will have to be monitored by the government.

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Italian by blood Maintaining the traditional authentic taste of Italian foods requires a lot of time and energy, as Jessica Burke reports.

T

he Italian influences on Australia’s eating habits have become so ingrained in our diets that we often forget where they started.

There have of course been positive impacts felt elsewhere throughout the country since our European football-lovers began immigrating to Australia, but the biggest difference to our society has been with food.

Prior to Italian people setting their sights on these sunburnt shores as a new place to call home, the diets here were boring at best.

Meat and three veg was the way of life, not just an option for nostalgic or laziness reasons.

When you think about how extremely diverse our food offerings are nowadays, it is almost an unfathomable concept.

While Aussies have countless nations to thank for this widening of not only our palates but our culture, the Italian influence has been one of the most significant.

Pasta (including the modern staple of Australian households, spaghetti bolognaise), espresso, pizza, lasagne, garlic bread and different cheeses just were not eaten prior to Italian immigration.

Imagining a life nowadays without these options we now almost consider our own is extremely difficult, and makes one grateful for the diversity brought to Australia by these cultures.

The Department of Primary Industries helped the Mancini's select the best location for their farm.

Where did you come from, where do you grow?

Blood oranges are a staple of Italian food, which until recently, we have been unable to enjoy in the same way they do across the pond in Italy.

RedBelly Citrus was more serious about ensuring authentic blood orange offerings for Aussie consumers than Leonardo De Vinci was about painting.

Not only did they decline to work with a marmalade manufacturer because its processing wasn’t in keeping with Nonna’s traditional recipes, but they even got the government involved in selecting the best climate in Australia to grow the fruit before settling on land north of Griffith.

“Sicily is renowned for their blood oranges, they are the biggest growers around the world,” Vito Mancini, Director, Redbelly Citrus told Food Magazine.

"Sicily is renowned for their blood oranges, they are the biggest growers" “The weather gives them the growing benefits compared to other countries that grow them, like Brazil and Florida because they need a very big differential between day and night temperatures.

“The weather in Sicily can go from nights down to about 2 degrees whereas in the day it gets up to 14, 15 [degrees Celsius] and that difference, the trees don’t like it, and it causes stress and that is why it what comes out in the fruit.

The company is committed to growing authentic blood oranges

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Mancini assured Food Magazine that the “stress” the trees face in the extreme variables of the weather does not damage the tree or the fruit at all, and is necessary to create the colour of the fruit.

“It’s just like growing wine grapes, you get a better wine grape with temperature differences like that too.

“Orange trees aren’t as tolerant as grapevines, if it gets too cold, it will damage the tree.

“So we worked really hard at finding the perfect balance.

“If I go towards Victoria, way in the high country it will get too cold and damage the trees and if I got to northern New South Wales, to Bourke or up to Queensland, it gets too warm and the tree doesn’t develop enough stress.”

“They’ll look like a Valencia, and generally you won’t get typical blood orange.

“It’s taken eight years to get to this point, we worked

with the NSW Department of Primary Industries (DPI) for a couple of years to work out best variations in temperature and they did heat unit mapping to work it out.

“They grabbed the temperature data from Sicily and overlayed it over southern Australia, over New South Wales, Victoria and South Australia, and there is a very distinct band which passes close to where we are that had similar temperatures to the growing areas in Sicily.

“So with that data, we could see the similarities.

“We always knew blood oranges grew in this area, but with that data were more confident we could match the Italian version.”

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The reasons for ensuring the similarities in temperature between traditional growing regions in Italy and those in Australia was simple, Mancini told Food Magazine.

“Were farmers, not multimillionaires, and had to borrow money so needed guarantee that it would work,” he said.

Beyond the need to ensure the venture would be successful for business reasons, Vito Mancini and his fellow Director (and brother), Leonard Mancini are passionate about the benefits of the fruit and sharing the taste and health properties with Australians.

“The best way to put it is to think of a mix between an orange and a berry, like a blueberry,” he said.

“You get all the vitamin C and folate that you get from citrus fruits, which also have lots of other benefits, “But grapefruit, for example, is really good, but they don’t recommend having them when on certain medications because it has high amounts of hesperin, which interferes with blood pressure tablets because it is a natural blood press regulator.

“Blood oranges don’t have the same level [of hesperin] as grapefruit, but has got the Vitamin C, folate, potassium, calcium, but an added benefit they contain belongs to the berry family chemicals, the main one being anthocynanins, which is a group of plant chemicals that have shown a lot of benefits.

“They’re called Neutrogenicals because of their benefits for the skin; they save against UVA and UVB damage, but another added benefit is the angiogenic

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inhibitors,” Mancini explained to Food Magazine.

Angiogenic inhibitors are molecules that prevent the growth of new blood vessels, which fights against ageing, obesity and most cancers which are dependant on new blood vessels.

Just like Nonna used to make Once the Mancini brothers had decided on the very best spot in Australia to grow their blood oranges, they set about making the fruits come to life in the same way their family had done for generations.

But it wasn’t a job that any average company could do, because they were determined not to sacrifice the quality, flavour or process of their marmalades, cordials and syrups.

“The recipes are quite basic, like any good Italian recipe,” Manini told Food Magazine.

“It’s about the quality of the ingredients, rather than quantity.

“We don’t make the product selves, we got contractors to do it because we don’t have bottling facilities and things like that.

“So we went through the receips with them, and some didn’t want to do our recipes, or didn’t have the gear.

“The marmalade for example, the way my Nonna used to make was with long thin strips of marmalade, but we found one company that wanted to run it through a machine to cube it up, so we said no to that.

“A lot of people we spoke to said they had to use

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During picking season, the company will hire a few extra sets of hands to help out, but for the most part, they do it on their own, and are enjoying the ride.

Despite the company’s success and a reputation as the expert on all things blood orange, Mancini is humble about their story.

“We will be the biggest producers around Australia, but it’s not about that, we just want to make produce that consumers can understand and appreciate,” he said.

“What we’ve done here, I call it a prototype farm, a huge prototype.

“I believe the world would be able to accept about 1500 tonnes of blood oranges, and if you look at the largest four producers in the world, Morocco, Spain, Turkey and Italy, we’re able to compete here in Australia, being an alternate season.

“What I’m trying to do is open up opportunities for citrus growers in Australia.”

are also quite different to 15-20 years ago.

“We are a much more multicultural society and many people have grown up with foreign flavours being considered the norm.

“This leads to a greater acceptance to trying new things and a reliance on the products’ country of origin to produce the best.”

The Bertolli range of olive oils are still manufactured in Italy to ensure their authentic taste and production, but when asked by Food Magazine whether the company would ever manufacture in Australia, Berryman did not rule it out.

“It is believed that the Mediterranean countries produce the best olive oil,” he said.

“The olive oil for our spray products come from our growers in the Mediterranean but are packed at a local company in Sydney’s west.

“Since the introduction of sprays on the market, we

Olive you glad it's authentic?

Another quintessential Italian product Australians have embraced wholeheartedly is olive oil, and according to Paul Berryman, Chief Executive for Bertolli Australia, consumers are much savvier these days when choosing their ingredients.

“Consumers are becoming more and more aware of how the flavour of olive oil helps enhance their dishes,” he told Food Magazine.

“The good quality Mediterranean olive oils are rich,

"They grabbed the temperature data from Sicily and overlayed it over southern Australia, over New South Wales, Victoria and South Australia" preservatives, and I think that by using more natural and basic ingredients, sure we may not have a shelf life of a hundred years, but we have the quality products and the story behind it that’s going to help push it.

“We could use preservatives so that my great grandchildren can eat that jar, but it’s probably not good for them,” Mancini laughed.

With over 40 hectares to take care of and more than 30 000 tress in the ground, the Mancini brothers have a lot of work to do running their business.

Mancini A D _ Ftold D SFood T EMagazine J U N _ he 1 2pruned . p d16f 000Ptress a ge on his own last year alone.

full of flavour but smooth and not too acidic or grassy.”

He explained that in the last 20 years especially, consumers have redefined what they are looking for, and can tell authentic products from the imitations.

“Australians are generally accepting of foreign flavours and this has certainly developed further in the past two decades,” he said.

“We have such a wide range of cultures making up the Australian culture.

“Italians are a big part of Aussie culture and this this/ acceptance 1contributes 2 1 / to 0 5 1 2 , 1 of: Mediterranean 1 5 P M food.

“We must also recognise that the Australians of today

have seen demand growing.

“However, consumers will always want the option of bottled olive oil as this suits other purposes.

“Bertolli is part of a global olive oil company.

“While we have an Italian heritage, we are always looking for new possibilities.”

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Almond waste to provide energy?

There are all kinds of ways to power things, and a new grant from the federal government is opening entirely new doors.

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ComitrolŠ 1700 The Almond Board of Australia has received government funding to investigation energy production from almond waste.

The Emerging Renewables program, which is focused on greener, renewable energy, announced it will provide around $32 000 for the Almond Board's study into the viability of using almond waste to produce energy.

A second grant of $85,000 to the Australian Solar Thermal Energy Association (AUSTELA) will go towards a $170,000 study of the potential of solar thermal electricity in Australia’s electricity market.

Studies into producing renewable energy from almond waste and the potential for concentrated solar thermal technologies will share in more than $117,000 in Emerging Renewables Program funding announced today.

Resources and energy minister Martin Ferguson congratulated the Board, as well as the only other recipient of the funding - the Australian Solar Thermal Energy Association, saying that these two grants illustrate the diversity of renewable energy.

The Almond Board will assess the commercial viability of producing energy from almond processing waste across the almond production industry, in areas such as the South Australian Riverland and Victoria's Sunraysia region.

The study will run for around four months, and if positive results come back the Almond Board will have the opportunity to apply for further funding to develop the project.

"This is a great opportunity for a primary industry to investigate ways to reduce its energy use from conventional sources by converting to renewable sources and shows a pathway for other industries to do the same."

Ferguson said. “There are a range of renewable energy fuel sources and technologies out there and when it comes to making renewable energy competitive, every technology should be given equal opportunity.

The study is expected to be completed in October and if positive results come back the Almond Board, there will be the opportunities to apply for further funding to progress the project through the new Australian Renewable Energy Agency. “This is a great opportunity for a primary industry to investigate ways to reduce its energy use from conventional sources by converting to renewable sources and shows a pathway for other industries to do the same,� Ferguson said.

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)RRG 3URFHVVLQJ 3DFNDJLQJ 6\VWHPV $86 XUVFKHO#KHDWDQGFRQWURO FRP DX KHDWDQGFRQWURO FRP www.foodmag.com.au | August 12 | Foodmagazine 11

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PACKAGING

Are you ready for this?

The new National President of the Australian Institute of Packaging (AIP), Ralph Moyle, shares his insight on Shelf Ready Packaging.

W

hilst Shelf Friendly Packaging (SFP) or Retail Ready Packaging (RRP), as it is also referred, has been part of the Australian retail landscape for nearly 10 years, it is a process and a function that few understand.

The core of retail ready is waste and cost reduction; two familiar topics to many of us. The Australian supply chain for FMCG goods is long and aggressive and has many hands touching the carton or pack. One of the key targets of SFP is minimising labour at each work station. For the secondary package, the accepted task of safe transport has not changed. It is just more challenging when it has to look good on shelf, attract a buyer and complement the primary pack.

There are three retailers driving SFP, Aldi with extensive European experience has a prescriptive approach.

The recent shared presentation at the AIP National Conference by Rod Evenden

(Woolworths) and Matt Swindells (Coles) clearly demonstrated common goals.

These goals are summarised in the mantra of ‘five easies of SFP’: 1. Easy to Identify.

2. Easy to Open.

3. Easy to Replenish.

4. Easy to Shop.

5. Easy to Dispose.

There are three elements to find the optimal solution to SFP.

The right size, shape and format of the secondary packaging This is a question directed at brand managers and packaging professionals.

The question is “what is the rate of sale of the item?” If you sell 24 items in each store, each week, then a carton of 24 can be adapted. However if the weekly rate of sale is 6, an analysis of the value of continuing

with a slow moving product is needed.

Structural With the example above, the weight, size and shape of secondary shippers are becoming smaller. Corrugated board, C flute is out-dated with E and the newly developed R as alternatives. Folded board once only used for primary packs is finding a niche with its exceptional printing qualities.

Regular-slotted and wrap around carton formats are no longer the only choice. Tray and hood or bridge is common Europe. Tray and shrink are generally the choice for rigid cans and glass. Choice is important, as one type does not fit all circumstances.

Communication The shipper having transported the primary packs successfully to shelf must now be point of sale material and communicate directly to the shopper. The

BACKGROUND ON RALPH MOYLE MAIP Ralph Moyle, the new National President of the Australian Institute of Packaging (AIP), is an experienced food-packaging consultant. He has also worked an Operational and Q.A. Manager in a market leading FMGC food company. Before that, he was Packaging Innovation Manager for one of Australia s leading FMGC companies.

His has senior management experience in Packaging, Operations and Technical in large and small FMCG customers. Ralph s packaging knowledge has resulted in successful contemporary designs and material selections, A D _ F D S I C A U G _ 1 2 . p d f improved P a g eshelf1 life,1lower 8 / 0material 7 / 1 2costs, , 1shorter : 5 4 supply PM

choice of message and how it is printed is core to success.

As was the case with introduction of barcodes on shippers many years ago at the direction of the retailers, SFP is a part of doing business today and it is not going away! No one would consider removing barcodes and in time SFP will be as important as barcoding.

Choice is important, as one type does not fit all circumstances.

Shelf Friendly Packaging, like many changes to our distribution cycle, requires a thorough understanding of the supply chain. The concept is not going away and it requires innovative thinking and honest decisions to succeed.

If you look you will find problems, but if you are committed you will find solutions.

chains and environmentally friendly selections.

He has been involved in many Shelf Ready Packaging transition projects since 2004 with large and small FMCG food companies and has implemented award winning National Packaging Covenant Actions plans.

Ralph Moyle is an active member of the Australian Institute of Packaging being a past Chairman of Victoria (2008-2010), past Chairman of Queensland (2006 2008) and National Board member since 2006. He has regularly presented on topical packaging issues at various packaging and industry events. Ralph is currently National President of the Australian Institute of Packaging.

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PREPARED FOODS

The Labelling Machine Company

Around the world on a plate

Where reliability comes as standard

The increasing popularity of ethnic foods around the globe is leading manufacturers to find ways to increase production to fulfil demand.

P

opulation migration around the globe, the interest in diverse “foodie” TV and Internet programs, and the trend toward higher quality, healthy packaged foods have all contributed to amazing growth in readyto-eat ethnic foods today.

Whether it is fresh salsa, hummus, gyro meat, Chinese stir fry, or tofu, many ready-to-eat ethnic foods that were once considered specialty items found in the ethnic food isle of a grocery store are now mainstream offerings.

The growth and interest in these types of foods, in fact, has been so phenomenal in the last decade that many of these products no longer seem “ethnic” at all.

And this is one trend that is not showing any signs of slowing down any time soon.

According to consumer market research firm Mintel, the sales of ethnic foods will grow by another 20 percent in the next couple of years, with diversity increasing substantially from earlier in the decade when Mexican/Hispanic were dominant with over 60 per cent share of the ethic food sales.

More recently, demand for Asian foods grew by 11 per cent, while Indian foods have seen a rise of 35 per cent, while other foods of ethnic origin, like hummus and tofu, have grown two or threefold in popularity around the globe.

To meet the dramatically increasing demand, many smaller, specialty food

processors are increasing the variety and type of ready-made ethnic and global fare offerings. Hummus, for example, is now offered in organic and non-organic varieties such as artichoke, eggplant, garlic, roasted red pepper and even Chocolate.

The challenge to smaller food processors is how to expand production to meet the explosive demand for these products. While modest food processing equipment was adequate even five years ago, many now must find cost effective equipment that can serve as a bridge to meet higher volume requirements while also retaining the authenticity and quality of the dishes they produce.

Handling warp-speed growth The food processing equipment issue was familiar to Jack Aronson, Chief executive of Garden Fresh Gourmet brand foods (Ferndale, MI), the producer of a broad line of handcrafted, all-natural salsa, guacamole, tortilla chips, hummus and other ethnic foods.

Starting out as a husband-and-wife team that began making a fresh blend of artichoke salsa on a small table in the back of their restaurant, Aronson’s company has grown from $4 million in sales in 2004 to over $100 million this year.

“We’re experiencing a lot of growth in ethnic foods.” Aronson explains.

“So there is an inherent need for those products to be fresh and natural, and to use authentic ingredients.

“That’s one of the reasons why ethnic foods like salsa, guacamole and hummus are healthy.”

His passion for creating authentic traditional foods led Aronson to questions the caliber of food processing equipment that would enable Garden Fresh to meet skyrocketing demands while still retaining the traditional appearance, taste and texture of the foods that were previously handcrafted in a small kitchen.

In addition to increases in the varieties and volumes of salsas, the company wanted to keep up with the booming popularity of hummus throughout much of the world, because much of Garden Fresh’ growth was due to the rapid growth of that product.

At the same time, Garden Fresh was looking to expand its product line to include Lebanese kofta (an Indian dish of seasoned minced meat), cubano peppers, and possibly other ethnic dishes, so flexibility of equipment was also important.

The company incorporated Unitherm Food Systems cooking and chilling equipment, which offered mini flame grills and continuous mini spiral ovens and chillers.

Garden Fresh also shipped its original product to the Unitherm factory kitchen, where the products were subsequently tested using different types of cooking and chilling equipment.

“They recommended specific systems as well as parameters such as cook times and temperatures,” he says.

Aronson says the equipment has provided him the flexibility to handle his growing assortment of products.

“When I do things on a large scale, for example, such as eggplant for my hummus, it goes through the fire-roaster in about 45 seconds,” Aronson explained.

“If it is a thick product, like carrots, it also has to be cooked on the inside.

“So, we put the carrots through our fire roaster to get the caramelization that enhances appearance, and then we bake

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PREPARED FOODS

them in the spiral oven, which finishes the cooking process.”

Different foods, different techniques Garden Fresh also uses the fire roaster to cook peppers that are used in several dishes, including salsas.

“We used to roast peppers on a gas grill, which was a very painstaking method,” Aronson said.

“But when we got a large account, it was obvious that we needed a new approach.

“Now, using a spiral oven, I can now do 1,000 lbs of vegetables on the spiral oven in the time it took me to do 20 lbs. on a gas oven.”

The flame griller and mini flame griller systems function as standalone cookers or as searing ovens that may be used directly in-line with a continuous oven and adjustable flame burners allow for the enhancement of flavor, colour and yield.

becomes smaller, with people more likely to travel and try different cuisines, the demand for authentic ethnic food has increased.

While restaurants serving genuine offerings from other countries grew steadily, people are now looking to also experience the flavours of the world in their own home.

Expanding to the world When Exotic Foodline began operating in 2002, the market for its frozen Middle Eastern, Indian and Pakistani dishes was less than chief executive Mansur Kaiser had anticipated, but when they did become popular, the demand grew faster than they could handle.

“It took five or six years before the market for these foods began picking up rapidly, and supermarkets were getting interested in our line,” Kaiser explained.

“Now, the North American market for these ethnic foods is so strong that

ethnic dishes promise to be popular.

The demand for the food products in the Middle east proves that the authentic flavours have been maintained in the company’s recipes and cooking methods.

Kaiser said Exotic Foodline is also expanding its selection of frozen foods.

“Our biggest sellers are the grilled barbeque items, particularly kabobs, but we also now offer a selection of snack

"We plan to incorporate Indian, Asian, Mediterranean, European, Cuban, Latin American and other styles of foods into that line, which will require considerably higher volumes."

The spiral ovens, available in three I believe it is going to be similar to that sizes, are recommended for steaming, of England, where there has been a high roasting, broiling and baking, as well demand for years.” as and post pasteurization, and can Boosted by strong sales in the US be coupled with a chiller and loading Kaiser is looking forward to exporting systems into A D _to Fsuit D processing S U P A Uneeds.

G _ 1 2 . p d f his Pline a g e Canada 1 2and 4 /even 0 7to/ the 1 2 , Over the last decade, as the globe Middle East soon, where his type of

items such as Tandoori chicken wings and Samosas, plus several new entrees such as chicken Tikka Masala and Biryani,” he said.

Another company capitalizing on the growth of ethnic and global foods is 1 “Panache!

1 : 4 6 Creative A M Cuisine,” which is looking for ways to increase the volume

of product it can churn out.

“We are launching a new line of “Street Foodz” that will span our six core categories - sandwiches, salads, entrees, snacks & sides, breakfast and desserts - with ethnic flavor profiles,” President Jonathan Stack said.

“We plan to incorporate Indian, Asian, Mediterranean, European, Cuban, Latin American and other styles of foods into that line, which will require considerably higher volumes.”

Stack said his company has been growing at a double-digit rate for the past five or six years, partly due to the success of Panache’s kosher operation “Bubbie’s Gourmet”.

The outlook for continued success with other ethnic-based fares is so bright that the company is planning to open additional operations in the South, Midwest and on the West Coast.

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All S uperior Coa tings f l oo ri n g s y s te m s c o m e w i th a l a b o u r a n d m a te r i a l s g u a r a n t e e 14 Foodmagazine | August 12 | www.foodmag.com.au

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The future of food:

Striving towards change, by Jessica Burke

There is no denying that there are some significant issues in the food and packaging industries in Australia.

It's difficult right now, for all facets of the foodchain, from paddock to plate, and one of the problems is the disconnection between the various sectors of the industry. But what has become increasingly apparent lately is the similar struggles being faced in seemingly different and somewhat disconnected industries.

Only through collaboration, teamwork and mutual understanding and respect will these important industries find a way out of the holes its in. With that in mind, Food Magazine organised the inaugural Leaders Summit in June this year, to bring together key stakeholders from the different corners of the industry, to discuss some of the most important issues and begin working towards solutions. We need to find ways to get all the perspectives heard and addressed, because Australia simply cannot afford to lose these important sectors. Hundreds of thousands of people are employed in the food and packaging industries in Australia. It's what allows everyone to put food on their tables, roofs over their heads, is the foundation of countless towns and cities around the country, and keeps our economy going. The roundtable was a fantastic opportunity to get people together to discuss some of these issues, and in 2013, we will be looking to deliver even more of these events.

We would like to thank all of the participants for giving up not only their time, but also their valuable insight into their part of the industry, and for their enthusiasm and commitment to these most important sectors. And without our platinum sponsor, Matthews Australasia, the day could not have gone ahead, so we are grateful for your belief and involvement in the day. Under the theme, "Surviving the retail and economic pressures: how food and packaging manufacturers can stay afloat in Australia," we discussed major issues concerning the sector, with the aim to begin moving towards positive change.

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www.foodmag.com.au | August 12 | Foodmagazine 15

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Forward thinking The inaugural Food Magazine Industry Leaders Summit focused on the importance of maintaining and improving the diverse food industries and ensuring their survival for years to come. Jessica Burke reports

T

here is no doubt there are various issues facing the food sector in Australia. The industry is more diverse than any other industry throughout Australia and it is impossible to consider one part of the industry and not others.

You cannot begin to talk about ingredient and machinery developments or discuss supermarket behaviour without also acknowledging the profound impact agriculture, government and education has. You cannot think about regulatory framework for health and obesity without considering the impact of the food manufacturers on such an issue.

With that in mind, Food Magazine decided we wanted to begin facilitating positive discussions between these groups. And that is how the inaugural Food Magazine Leaders Summit began. Because while it is a diverse and fragmented industry in many ways, the issues everyone is facing are strikingly similar, and so we decided to bring together representatives from all parts of the chain, from paddock to plate, to discuss some of these important matters and start working towards positive change.

Supermarket powers One of the most pressing matters for the food industry is the impact of the supermarket price wars and the captivity to the duopoly. So absolute is their power over the industry that very few are willing to speak out against the anti-competitive, bullying behaviour of Coles and Woolworths, actions which are squeezing Australian manufacturers out of business and forcing farmers to give up on farms that have been in their families for generations. The most significant case of the supermarket pricing impact, which led to increased public awareness about their behaviour, was the now-infamous milk price wars in January 2010, when Coles dropped the price of milk to $1 per litre and Woolworths quickly followed suit. “In NSW, my state, I see farmers being asked to sign contracts for three cents a litre less than their previous contracts,” Terry Toohey, Australian Dairy Farmers Director said at the Leaders Summit. “This will have astronomical effects on fund and profit margins. In my case I’ll have 40 per cent of my tier 2 of milk [purchased] at 18 cents [per litre]. The cost of producing it is 40 cents [per litre]. So, you start to look and say, I’m only one person, there are 800 dairy farmers in NSW alone.”

The current practice is for milk companies to announce what is known as an Anticipated Full Demand (AFD) to Dairy Farmers Milk Cooperative (DFMC), which is bought at a somewhat reasonable price and referred to as Tier 1 milk. Any milk deemed ‘surplus’ is then paid at a much lower price and referred to as Tier 2 milk.

However, the buyers of the milk produced on Australian farms are deliberately underestimating the amount of milk that each can deliver, meaning they are not obligated to buy a considerable portion of the milk they know a farm will produce at the reasonable price. There is no transparency at farmer level as to what Tier 2 milk is being sold to other processors for.

Who will run our farms?

“The retail actions are certainly impacting the dairy farmers in a negative way, this combined with the uncertainties and other factors [impacting] dairy or other farming, it’s making it unattractive for the next generation, because it’s not profitable for my children,” Toohey said. “If I was old and had children ready to take over the farm, I will tell them blue in the face not to come into agriculture. And that’s pretty sad after 107 years on the one farm. I have got over a hundred calves at the moment coming from western property and it’ll be cheaper for me to put them straight in the meat works and chop their heads off, because the profit margin is so low [to milk them]. I’ll just lose money on it. Now we’re exporting, the export market has picked up.”

Michael Claessens, AgriFood’s General Manager for Workforce Development and Analysis told the Leaders Summit that as supermarkets keep lowering prices and 16 Foodmagazine | August 12 | www.foodmag.com.au

putting Australians out of business, there will have to be a differentiation in quality.

“One other answer is the quality; people will pay a high price for high quality,” he said.

“People will pay a high price but without that perception of value, people won’t.

“The market will go continue to go in the direction of the lowest price product.

“That being said, in a job prior to this one, I did some analysis for China-Australia Business Council and we looked at the analysis of how many household items are Chian sourced or Asia-sourced, particularly China-sourced. And there is a lot more than people recognised.”

Competing with imports David Hall, Director of Business Development at the Australian Food and Grocery Council said competing with imports is difficult for local companies.

“The high Australian dollar presents enormous challenges for our members, in terms of making import cheaper, but there is also significant opportunity that we also lobbied in terms of opportunities for companies to invest in equipment, a lot of which does come from overseas,” he said. “We’ve pushed hard to have accelerated depreciation so that companies with little success so far can take advantages of the few opportunities

"In NSW, I see farmers being asked to sign contracts for three cents a litre less than their previous contracts" for our members that a high Australian dollar presents.”

The reliance on imports could leave not only Australian companies and farms out of business, but also pose a risk to consumer safety.

“How can we encourage people to buy Australian products, certainly it appears that they can buy the products cheaper overseas, and they will do so,” Toohey said.

“Some of the issues, as farmer I can relate to are things like apples for example, or oranges, these products that those fruits and veggies are soaking in, we can’t [use] those chemicals here in Australia.

“Yet the imports can come in.

“We use clean water to wash these fruits but some of the chemicals they use over there have been gone for 10, 15 years out of Australia.

“But that’s quiet alright, we have no say and the government just won’t listen to us.”

Supermarket scare tactics The issues within the supermarket space and the impact on farmers and manufacturers reached a point earlier this year which led to a Senate Inquiry into the practises.

But it has failed to convince many people to speak up, which is an issue being seen in the industry day in, day out, with companies and manufacturers willing to speak off the record about the pressure places on them by the major supermarkets, but unwilling to go on the record for fear of retribution by the retailers.

Food Magazine contacted countless manufacturers about participating in the Leaders Summit and they all showed interest until they were sent a list of planned discussion topics for the day, one of which was about the impact of the supermarket price wars and whether we need a Supermarket Ombudsman.

Some were frank in their reasoning, saying they could not be seen to be participating in an event which appeared to include any criticism of the supermarkets or suggestions of legislation for them.

It is a scary reality that companies cannot even appear to support any kind of transparency in the industry, lest they lose their place on supermarket shelves.

We also contacted Coles and Woolworths several times to ask them to participate, but they declined our offer.

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Labelling and legislation First speaker of the day, Ian Harrison, from the Australian Made Australian Grown campaign, on the foundations of Australian Made labelling and how it needs to be improved.

Only once all corners of the food industry can have open, honest communication about pricing and impact on business will there be any hope of these problems lessening, but with that not looking like a possibility, the suggestions have turned in recent times to regulating the sector.

Ian Harrison, chief executive of the Australian Made, Australian Grown campaign believes one of the changes needs to occur within the competition watchdog before anything will change, because at present, with a focus on what benefits the consumer, it is not taking into consideration the impact at the end of the line.

“I’m thinking the ACCC [Australian Competition and Consumer Commission], its charter should be [extended] so it actually does consider the competition in the market place,” he said.

“I’m more interested in trying to get the frame work that the ACCC operates in to be able to take this on and have their constituency being the dairy farmer, or the orange grower, or whoever.”

Toohey also has ideas on how to begin improving the environment for suppliers.

“We believe from the grocery supply code of practice, the grocery code could provide a good starting point on the basis of Australia legislation, establish a mandatory code of practice and an ombudsman with the ability to levy financial penalties,” Toohey said.

“We are sure that Coles’ actions impact on the visibility of the brand of dairy products and would lead to less variety of dairy products on supermarkets shelves as has happened in the United Kingdom.

“It’s our organisation’s view that Coles’ actions will ultimately less competitions consumers, decrease product choice as the experience of the UK has shown.”

The long term view Stephen Mummery from Matthews Coding and Labelling Australasia agreed that the short-sightedness of companies and consumers is damaging the sector and will continue to damage it until changes are put in place.

“You go into the supermarket now and see the private label explosion,” he said.

“I have a preferred of brand of canned tuna that I like, and I have watched the shelf space of that brand dissipate because there is private label coming in that is cheaper.

“Especially in the Victorian economy at the moment is technically in recession.

We’ve had 120 jobs being lost every day for the last 6 to 7 months.

“We’re facing challenges with business, like Fairfax, and other areas of the economy were just gushing people left right and centre.

“People don’t have it in their budget to have that longer term view, of it is I buy this Australian product now, 10 years down the track my business and my industry will be supported.

“We’re very very short sighted.”

Katrina Ford from the Australian Manufacturing Workers Union (AMWU) said the key is educating consumers about the impacts of their decisions, especially when made solely on price.

“That is reflective of a lot of industries, where we’ll lose so many skills, and I think the key, in general, is educating the consumers,” she said.

Education the key Harrison believes the good life we have in Australia has resulted in entire generations who cannot imagine things getting irreparably ruined, creating mass misconception that everything will be OK. “There are a bunch of young kids out there who haven’t experienced anything except growth; growth on growth on growth,” he said.

“It’s Interesting reading about Europe, in Spain there is something like 22 per cent

A

s the chief executive of the Australian Made Australian Grown campaign, Ian Harrison oversees a lot of the controversial labelling of food and packaging products from Australia.

The iconic image was an initiative of the federal government in 1986, and is a certification trademark.

As Harrison explained, it is a "very legal instrument," which has a set of rules behind it and those rules can't be changed without agreement between us and the government."

For 10 years up to 1996, the symbol and its use was run by the Advanced Australia Foundation, before a change in government saw the funding that was set up for the logo removed.

"We're non- for profit, we're a public company limited by guarantee," he said.

"In 2007, the federal government introduced Australian Grown.

"We rewrote our rules at that time and we changed the name of the symbol from the Australian Made logo to the Australian Made Australian Grown logo.

"It gets a bit more complicated for us because last year we introduced Australian seafood driven by the seafood industry, and internationally we introduced Australian to be used offshore.

"I'm happy t o say has grown significantly in the last five or six years.

"We've got about 1,700 companies using it just over, and on about 10, 000 products, so there's a very, very wide usage across all sectors, and of these companies, 44 % of them export."

Harrison explained that the use of the symbol when exporting, particularly to Asia and North America, has been very effective, and that locally, 94 per cent of Australians recognise and will buy, based on it.

"I wouldn't be doing this thing if I didn't believe that country of origin has a strong element of benefit for the companies that use them, that can use them because of the sorts of things Australian stands for.

"Our national brand is very strong internationally, so we think country of origin should be mandatory for food.

"I don't know why you have it on pork but do not beef or chicken, you got to have it on seafood."

The organisation wants the definitions and legal parameters of using the label to be stricter, as more companies are able to find loopholes to promote their products as Australian, when in fact they are made primarily from foreign ingredients.

"Tighten up the definitions of substantial transformation, I think one of the problems we find in the industry and one the consumers don't like is 'maybe' particularly in the area of food," Harrison told the Leaders Summit.

"You have to substantially transform the product in Australia, and you have to have more than 50% value add in Australia.

"Substantial transformation, we believe, offers a very important way forward for the government to put a bit of strength and predictability into food labelling. "We think you can actually make some fundamental changes to what constitutes substantial transformation."

Harrison talked about the current disconnect between food companies, the campaign group and the government, and believes the benefits of the label will only be fully realised when all these facets work together.

"The Federal government technically owns the logo, they can take it back, they invented it.

"We want the federal government to fully reengage with the AMAG logo."

www.foodmag.com.au | August 12 | Foodmagazine 17

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Dire dairy industry Director of Australian Dairy Farmers, Terry Toohey, discussed some of the major issues the dairy industry is facing in his speech at the Leaders Summit.

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erry Toohey wears a lot of hats, as Director of Australian Dairy Farmers, Chair of NSWFA Dairy Committee, board member of Cattle Council Australia and Subtropical Dairy, Ministerial appointed member of Dairy Connect NSW, to name a few.

But first and foremost, Toohey is a hard-working dairy farmer, who understands the struggles the industry is currently facing, because he experiences them first hand too.

"I'm a fourth generation farmer and my children are fifth, so for 107 years we've started our regional farm and progressed through succession planning and continued to grow, but we're nearly at the run of the tides, I believe."

In his address to the Leaders Summit, Toohey explained that, though innovation and development, the dairy industry improved and flourished, up until the supermarkets declared war between themselves on the sector.

"In 1980 we produced just under 9 million litres and the cow number have dropped over the years.

"And that's just the sign of the times and innovations with your industry in all sectors whether it be metropolitan or rural.

"Development has grown, the cow numbers have gone down, product has gone up and it's sort of a win win, but where at the turn of the tides now with particularly the milk sector.

"Of all the government politics have really come home together at once and is driving this market so being on an international market we're up against world trade of tariffs and it just, you know we're not on the same playing level field.

"There is about 6,900 dairy farmers in Australia at the moment; we're down from 22,000 which was roughly 30 years ago.

"Dairy is Australia's third largest industry and is valued at roughly 4 billion dollars.

Toohey spoke about the impact of the supermarket price wars on the dairy industry, and why the pressures are driving farmers away.

"In NSW, my state, I see farmers being asked to sign contracts for 3 cents a litre than their previous contracts.

"This will have astronomical effects on fund and profit margins."

"In my case I'll have 40 per cent of my tier 2 of milk [purchased] at 18 cents [per litre]. The cost of producing it is 40 cents [per litre].

"So, you start to look and say, I'm only one person, there are 800 dairy farmers in NSW alone."

"The retail actions are certainly impacting the dairy farmers in a negative way, this combined with the uncertainties and other factors [impacting] dairy or other farming, it's making it unattractive for the next generation, because it's not profitable for my children.

"If I was old and had children ready to take over the farm, I will tell them blue in the face not to come into agriculture.

And that's pretty sad after 107 years on the one farm."

Toohey believes there is room for improvement, but it will take cooperation from industry, retailers, government and consumers to get there.

"The area of growth that will really show will be Tasmania, because the government in Tasmania has a different attitude towards agricultural sectors, where they are willing to work out a way that's going to work for the environment, people, the consumers as well as the agriculture sector.

"So hopefully the mainland, some of the politicians will take note and see a little part of Australia is driving the rest of the country, or will drive the rest of the country."

18 Foodmagazine | August 12 | www.foodmag.com.au

unemployment, 50 per cent youth unemployment or thereabouts, but our kids don’t understand that because our currency is so strong.”

Al the participants agreed that educating children about what the country would be like without our profitable food industry, or allowing them to experience the daily life on a farm is important in creating the next generation of workers.

“I think you educate a consumer, I don’t think you can legislate, I don’t think you reintroduce [the] tariffs and bounties, quotas of the past.

“You just simply have to take the position to Australian consumers, point out the consequences of going down certain paths and then they make the choice.”

Harrison believes the high regard for Australian food is something we should use to our advantage, especially if we are to become the ‘Asian foodbowl’ Prime Minister Julia Gillard suggested earlier this year.

“94 per cent of Australians recognise [the Australian Made, Australian Grown] symbol, and more importantly, more than 86 per cent trust it more than any other country of origin marks, flags maps, or pictures of animals.

“Apart from its strength of as a certification trademark, it stands alone in that field – alone for country of origin – but it is also a powerful marking tool.

“It is a very powerful marking tool in foreign markets just like it is in Australia.

With not nearly enough young workers entering the agriculture or food manufacturing industries, the situation will only continue to become more dire as the years wear on, unless a collaborative effort between government, education and industry can be made.

“The decisions with regards to the agriculture sector and grocery sector means we’re poor payers,” Toohey said. “Poor payers because we have poor returns.

“So those skilled people you find in the city, they don’t want to be in your industry.

“But the market doesn’t reply, and that’s what we’re facing.

“You’ve all heard the story: there is a girl who works with my wife in a meat company, she is a first year phone receptionist and she left to go up to driving a mining dump truck for $110,000. You just can’t compete.”

Claessens said the key is getting young Australians interested and educated early.

“In our submission to the National Food Plan, a lot of people pointed out that need to go to higher quality, higher innovation, to draw on our strong reach capacity for food value-ad.

“One big problem that isn’t recognised is the [education during] school days, that includes teaching about being food scientists who do the research into new product and value had, right through to farm workers and farm hands, who are no longer just farm hand but business managers.

“That is a huge skills gap, and there is the premise that school are there [learning about the industry] and if you’re a large food manufacturers you can source your food scientists from major universities, but if you’re a SME [small to medium enterprise], innovators in Australian market won’t be able to source or attract those people so early.

“We need more use of the vocational education training system, some support of physical facilities.

“Private enterprises need to put their hands in their pockets as well, it’s not only about government handouts, and it’s about collaboration. “We have great pedigree in research and the reason why half of the world’s population has been feed as well as it has up to now is because research breakthroughs in new grains, and that can be done again.

“We have a great pedigree, which we need to build on and that starts at school level.”

Melissa Wortman, executive officer of AgriFoodSkills Australia agreed, saying the key is to familiarise children with the industry so it’s not daunting to them when they grow up.

“One of the problems about that is there is no engagement with the schools,” she told the Leaders Summit.

“The industry doesn’t have a strategy to engage with the schools and that is one of the issue we’re dealing across the industries and in primary industries and processing companies.

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“Schools don’t have the experience what the industry is about so that’s why they choose the industries they are familiar with.”

“I work across all sector agriculture and food processing, and the general publics doesn’t know how much the farmer is getting screwed at the farm gate for the primary produce.

“If the consumer knew how much the farmer is getting paid for their products, I think the public will think about what choice they make in the retail sector and the supermarket.”

Farming facts Toohey also believes the misconception about agriculture and farmers needs to be altered if any new workers are going to enter the industry.

“Everyone looks at the lady who has a hair salon down in Pitt Street, and she’s got hundred thousand dollars worth of products sitting on the shelf there plus a couple of chairs, she’s seen as a business lady. But we’re only farmers.

“We’re in the process of, in our operation, changing our two tractors and mixing wagon, that’s nearly $700,000 right there, but I’m just a farmer, a second grade person because I’m not in business, and that what’s we’ve really got to change.

Cristel Leemhuis, Director, Preventative Health Policy Healthier Australia Commitment at the Australian Food and Grocery Council (AFGC) told the Leaders Summit that meeting consumer demand has gone too far, which is part of the problem in supplying fresh produce particularly, at reasonable prices.

“It’s challenging in the area in that there is an expectation that we should be able get apples all year long, we should be able to get oranges all year long,” she said.

“We can’t. We don’t grow them. We don’t grow 12 months of the year.

“So again linking into that education and when we look at the cost of living, if you bought fruit and vegetables in season and you know it’s in season, generally the price is cheaper than when it would be out of season.

“It’s actually more cost effective buying a Big Mac meal every day, so we need to be educating people about those issues.”

PM

CHAIR: Jessica Burke Editor, Food Magazine

SPEAKERS: Ian Harrison Chief executive, Australian Made Australian Grown Campaign

Terry Toohey, Director, Australian Dairy Farmers, Animal Health & Welfare Advisory Group

Dr Lisa Studdert

Manager, Policy and Programs, Australian National Preventative Health Agency

PANEL: David Hall Director, Australian Food and Grocery Council Business Development.

Cristel Leemhuis Director, Australian Food and Grocery Council Preventative Health Policy Healthier Australia Commitment.

Terry Toohey, Director, Australian Dairy Farmers, Animal Health & Welfare Advisory Group

Dr Lisa Studdert

The weighty issue

Manager, Policy and Programs, Australian National Preventative Health Agency

Leemhuis also works closely with manufacturers and the government to find solutions on one of the most pressing health concerns for Australia today: obesity nutrition.

The AFGC developed the Responsible Marketing to Children Initiative (RMCI) to reduce the amount of junk food advertising shown to children and the government is currently working on a mandatory front-of-pack nutritional labelling scheme which is expected to be released in November.

Katrina Ford

"There are a bunch of young kids out there who haven't experienced anything except [economic] growth"

Manager, Industry Liaison AgriFood Skills Australia

“One is the marketing of food to children that has been looked at globally in terms of the impact it has on the sorts of food children consume,” Lisa Studdert, Director, Australian National Preventative Health Agency told the Leaders Summit.

“Industry has taken steps around voluntary self-regulatory initiatives that are limiting periods of time and form of advertising.

“We’re also very interested in labelling, though not playing a direct role, front of pack labelling is something we think will be an important measure in terms of creating informed consumers and education is that’s part of education.

“We run a major government campaigns, like the ‘swap it, don’t stop it’ campaign, which is about educating the population around the risks of obesity and the steps that can be taken to address that on a personal level.

While links are often drawn between the impacts of smoking compared to obesity,

Industrial Officer, Australian Manufacturing Workers Union

Michael Claessens General manager workforce development and analysis, AgriFoods Skills Australia

Melissa Wortman Kevin Hannon NSW Chairman Chairman, Australian Institute of Packaging

John Williams Director, Australian Processing and Packaging Machinery Association

Ian Harrison Chief executive, Australian Made Australian Grown Campaign

Stephen Mummery National Sales and Marketing Manager, Matthews Australasia

Warren Hutt NSW Sales Manager, Matthews Australasia www.foodmag.com.au | August 12 | Foodmagazine 19

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Preventing obesity Final speaker Lisa Studdert discusses why the focus on health and obesity is so important for the food industry, and what the government is doing to improve the situation.

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s director of the Australian National Preventative Health Agency (ANPHA), Dr Lisa Studdert is leading the team of people looking at ways to improve the health of Australians and prevent one of the most pressing health concerns the country currently has: obesity and nutrition.

Coming from a long line of farmers in western NSW and with a background in agriculture science, Studdert understands the importance of engaging all sectors of the food industry to bring about change.

The ANPHA is a new agency the government established early last year, which came out of the health reform process, and aims to ensure all health agencies are heading in the same direction.

"The top seven risk factors that are associated with the burden of disease in Australia are currently relate to a few key issues," Studdert told the Leaders Summit.

"Tobacco, not surprisingly, is number one, even still, despite smoking rates in Australia going down, and the fact that we've got some of the lowest rates in the world. We still have a large burden of disease that has to come through the system, lung cancer rates in women are not expected to peak for another couple of years. They have started to peak in men, but that's still many years to play out on our health care system.

"Other risks are associated with harmful consumption of alcohol and then of course the big one at the moment is obesity overweight and obesity and the trajectory of that is still in the upward direction and we haven't quite nailed that.

"The trend for Australia in the overweight obesity compared to other countries. And what I think most concerning on that for all of us globally is that we're not seeing that plateau yet.

"And we've only really just started to look at that closely and work out what it is that's happening there and why.

"There are a lot of theories, but not a lot of evidence, hard evidence.

"But there is some reason for hope.

Studdert said that while some vague parallels can be made between anti-smoking advertising and its anti-obesity counterpart, the two are very different and should be approached accordingly.

"You've got a range of measures that include bans on advertising and sponsorship, then the cost related measures around taxation and price and the environmental measures that change those places where people can and can't smoke. And the education of course, which we see around road traffic injury rates, around sun melanoma rates, where we've started to turn the trend around and we've seen a similar array of measures being used to drive that change. So we think that's an indicator of where we might need to go and other areas such as obesity and alcohol.

Studdert told the Leaders Summit that the involvement of all sectors of the food industry and the packaging industry is crucial for making improvements. "There is a lot of stuff we're doing in partnership with the industry, one is the marketing of food to children that has been looked at globally in terms of the impact it has on the sorts of food children consume.

"Industry has taken steps around voluntary self-regulatory initiatives that are limiting periods of time and form of advertising.

"We're also very interested in labelling, though not playing a direct role, front of pack labelling is something we think will be an important measure in terms of creating informed consumers and education is that's part of education."

20 Foodmagazine | August 12 | www.foodmag.com.au

both Leemhuis and Studdert are cautious about the parallels.

“I get a little bit concerned when we look at smoking and try to compare that and the action that we take in that area to food,” Leemhuis said.

“Because we know food does not equal obesity and there are so many other factors that play into this equation, so we need to be looking at all those factors. It’s different to smoking, smoking does cause cancer, it is a direct link, so there is direct action that we can take in that area.

“So I think we’re going to need to be cleaver in the overweight obesity area to actually look at it and address it properly and we certainly need to get a plateau before we can look to get it down.”

Studdert agreed, saying the anti-obesity strategies in place are far more complicated than anti-smoking campaigns.

“In fact what we now recognise, and what is slowly dawning on some of our hardcore lobbyist in the tobacco space is that, relatively speaking, tobacco has been an easy public health challenge because the bottom line is quite simple: no cigarette is safe and ever cigarette does do you damage and therefore you just need to quit.

“So quitting is a pretty bottom line and it’s unequivocal. When it comes to alcohol, it’s more complicated and when it comes to food it gets even more complicated because we all want and need to eat on a regular basis.”

Reform, not regulation Leemhuis said the industry needs to work towards improving obesity rates if it wants to avoid being forced to make changed.

“The food industry is definitely part of the solution, particularly when you look at overweight and obesity.

“We’re not part of the problem, we’re part of the solution and I think the more that we can collaborate the better our outcomes will be in the future.

“Responsible marketing to children is absolutely essential, so we do limit what children see in this area, and the research is very much showing that marketing in those areas decreased dramatically since we implemented that in 2010.

While many argue that the only way to improve such marketing in the industry, as well as other issues, is to get the government to legislate around it, Leemhuis thinks the industry can be responsible without such intervention, as is evident from the number of manufacturers and fast food outlets already making significant health changes.

“It’s not voluntarily, the consumer is demanding it,” she said.

“Consumers push these businesses, so they’re responding to that consumer demands.

“I’m a fan of minimum effective regulation if we do need it lets go down that track, but let’s see what we can do without the regulation to start with.

“Can we actually address the issue without regulation?

“That’s the path we should take first.

“If that doesn’t work then we should step into these other areas, but we really need to try this other area first before we just straight down to [regulation].”

The main issue with reaching voluntary change is that it is dependant on collaboration amongst industries, which are mostly few and far between.

“Have [the industry] like they do in the UK, the milk producers meet once a month, they sit around a table and they talk about business.

“There is no chance in hell of taking about milk prices, but you can talk about the power inefficiencies or how efficiencies within your plant, but we cant do that in Australia, because the moment we get together, it’s colluding, so it all falls over.

“So you’ve got to look from the paddock to the plate and consumers have got to be sitting around the table as well because you’ve got to understand.

“It’s a whole sector. One sector is no more important than the others.”

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Continuous improvement Food and packaging manufacturers need to look to the future if they want to succeed, as Matthews Australasia explains.

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production space and errors.” n recent times, Australian manufacturers have faced the challenges of a high Mummery says continuous improvement is based on Australian dollar, intense competition, increasing interdependence of global ideas such as “go and see” — checking things out at supply chains, and shifting patterns of consumption and investment. To continue the source. to compete successfully in domestic and global markets, manufacturers need to be “And ‘asking why’ — finding a better dynamic, innovative and world-class in their performance and productivity. way, then standardising and repeating that Becoming more efficient and productive is not a quick fix; it’s achieved through forever; and stopping to fix issues as, organisational change and continuous improvement. Neither it is really about working and when, they arise; along with harder and faster; it’s about innovation and optimising resources. simple visual management — to Mark Dingley, chairman of the Australian Packaging and Processing Machinery reveal problems and then Association, says, “Today, food producers need to continuously look for ways to be coordinate more cost competitive, yet deliver outstanding value to their customers. That is just the fixing them.” way in this dynamic and global business environment.”

He says one of the best ways to improve performance and productivity, plus encourage innovation, is to become “lean”.

“There are lots of misconceptions about ‘lean’; the main one being that a company must cut cost by reducing waste to use less resources on the factory floor.CALL Really, ‘lean’ 1300CODING (263464) CALL 1300CODING (263464) is a system — a proven system — that covers the entire organisation and is all about The 'black hole' enabling a faster flow of value to the customer by removing bottlenecks and reducing But, says Mummery, implementing “lean” in the packaging area can be challenging, basically non-value adding wastes.” because in-depth real-time visibility is generally non-existent. He describes the classic And, Dingley says, it’s not just about measuring how busy people are or how much manufacturing environment in which ERP and SCADA systems extend to the production floor, er at better t what bett nd ou Find outwhilewh Fi time they spend doing something.

WMS systems cover the warehouse, leaving the packaging area as the “black hole”. d di andit, due to the gtoan in llin beit’sll “It’s about sustainable, yet fast, delivery of value to the customer rather co thandi just ng, la “So very hard improve processes, wastage andg quantify lathebe ng,find co trying to maximise use of workers and machines.” lack of dataso capture and automation.

Clearly, what you can’t see and s eability solutimeasure, onac ons you lutitr ty bili tracea Dingley says in lean organisations, every single person is focused on identifying and can’t manage and improve. . forsoftware ss. nenssdo sipackaging sine your eliminating sources of waste and inefficiency.

“But,ur that isbu where automation comesbu in, such as iDSnet can do for yo ca “They view the world through their customers’ eyes. They understand the concept of Manager, which can provide this real-time visibility in the packaging area. flow and the power of sharing information within the organisation.”

“Take this typical scenario in the packaging area: the line has stopped, yet no one knows why — precisely — the unplanned stoppage occurred, how long it went for, or Visitline Matthews Foodpro booth H18 Sydney Visit Matthews at Foodpro booth H18 even Sydney when the startedatagain.

Lean pillars Convention & Exhibition Centre 10 -13 July 2011.

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“Yet this data, if captured over time, reveals patterns on which processes needs improvement Mark Dingley says there are two basic pillars of “lean”: continuous improvement and Enter the draw at the booth to win an iPad 2!

Enter the draw at the booth to win an iPad 2! or which equipment needs attention — both of which aid the faster flow of value.” workforce engagement. www.matthews.com.au www.matthews.com.au His comments are picked up by Stephen Mummery, national sales and marketing manager with Matthews, which sponsored Food Magazine’s Leaders’ Summit.

Software to 'see' Mummery says, “Continuous improvement is a process-improvement cycle of “iDSnet Manager is an add-on module to Matthews’ iDSnet Enterprise software looking at the way things are done and evaluating if it can be done better, thus package, widely used by Australian manufacturers. It networks all coders, labellers and eliminating unnecessary, or wasteful, activities, expenditure and resources. other peripheral devices — like barcode scanners, vision systems and so on — on a “Formal continuous-improvement processes reduce waste and continually improve single line or across multiple lines to a central PC. This allows for two-way information the products and service delivered to the customer. In this way, lean businesses flow, capturing data in real time and increasing automation.” continually have reductions in response cycle times, production times, costs, required Stephen Mummery says iDSnet Manager (the reporting tool) processes and displays all the data captured by iDSnet as reports, dashboards and scoreboards. iDSnet Manager reports and dashboards have real-time information about active production, planned downtime, unplanned downtime and no-run time. Charts show the efficiency per timeblock percentages, while graphs show the cumulative production count — even details such as product, run start time and the operator’s name. A split into “good count” and “reject count” can be integrated via a vision system, capturing reject numbers and the reason.

Mummery says all these dashboards and reports help managers to see waste of product and unplanned downtime (so they can reduce or eliminate it); visualise it; and implement continuous improvement (easily find the source of issues and analyse the root cause).

“On top of all that, iDSnet improves automation, eliminates coding and labelling errors, allows for equipment and tooling to be ‘right- sized’ and be made readily movable and reconfigurable; plus set-up times and defects can be essentially eliminated.

“And this continuous improvement adds up to being leaner.” www.foodmag.com.au | August 12 | Foodmagazine 21

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SAFETY FLOORING

No falls from grace Ensuring workers are safe is always at the forefront of food manufacturers’ minds.

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“The food industry is one of our here are few places where safe sectors that we target and we provide flooring surfaces are more a number of different ranges of safety important than the food industry. flooring,” he said.

With countless staff manoeuvring “Ours is vinyl product, and typically around moving machinery on floors that it’s used in laboratories, food preparation are prone to have spillages, the chances areas, wet areas, and anywhere that for accidents is dangerously high, unless requires degree of workplace safety. proper precautions are taken.

“Anywhere workers could possibly drop An accident can cause extended or spill something that would make it a slip downtime for a company, leading to lost hazard, there needs to be safety flooring.” time, which no company can afford in the According to the Australian Workers current economic climate.

Union (AWU) over a third of all major The long term impact on a company’s injuries reported each year are the result reputation can even result it being of slips and trips and are the single most forced to fold. common injury in the workplace.

Warwick Duncan from Altro Flooring In both manufacturing and the told Food Magazine the industry is always forDways improve A Dlooking _ F OO M T Ito M A Y _ on 0 9 . p services df Pindustry, a g e injuries 1 2 from 6 / 3slips / 0and 9 , trips are the most common cause of safety for their workers.

flooring],” Duncan said.

“One is insurance, and one is the Australian standard.

“If anything goes wrong and a worker takes a company to court and sues them, the judge will defer to the Australian standards and if they’re seen to not be following Australian standards they would

non-fatal major injury and the food industry has the highest incidence, with about twice the average rate for manufacturing industry.

The most common causes for slips is too little friction or traction between the footwear and the walking surface, which can be caused by wet or oily surfaces,

The most common causes for slips is too little friction or traction between the footwear and the walking surface occasional spills and splashes of liquids, change from a wet to a dry surface, dusty floors and flooring or other walking surfaces that do not have same degree of traction in all areas. couple of different drivers 1 “There : 2 0 arePaM behind [companies installing safety

be more liable than they would have been.

“But besides that, every company has a duty of care to provide a safe work environment for their staff.

“It’s just the right thing to do, to provide a place where staff are comfortable and safe.’

www.foodmag.com.au | August 12 | Foodmagazine 23

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PET FOODS

Only the best for pets Today’s pets are fed almost as good as their owners, as Jessica Burke reports.

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“More and more customers are ets really are our best friends. requesting that products are 100 per cent So loyal, loving and downright Australian so that their animals are not hilarious that we forgive them ingesting imported products that have been when they ruin our shoes, dig up our irradiated when they enter the country. favourite flowers, make a beeline for “Customers are constantly looking for the dirt as soon as you’ve bathed them food and treats that have some health and even when they…well…relieve benefit to their animals.” themselves on the carpet. You couldn’t Minnikin explained there is a move say you would forgive a two-legged best towards higher-quality pet food, as friend for such things. opposed to scrap meat for today’s pets.

There is no doubt we love them, and “Customers want to feel as though truly count them as part of the family, so they are feeding their animals the best it’s no surprise that the demand for quality possible, manufacturer’s endeavour to food or treats that they can. foods for our furry friends is on the rise. use natural ingredients. “ Animals now days have become After all, you won’t feed yourself Just as pet owners are looking to feed more of a “companion pet “ than just a or your children subpar foods if you their animals with similar quality foods yard dog and owners like to feel like they can avoid it, so why would the smaller to what they eat themselves, they are also treat them as one of their own children in members of our families be any different? moving towards portion-controlled meals many cases – so the usual table scraps are Alison Minnikin, General Manager of to feed them quickly and easily in today’s certainly not as common, as owners are Next Generation Pet Foods gave Food busy lifestyles. also conscientious that their animals are Magazine some insight into just how the Customers are looking for smaller, pre receiving a balanced and healthy diet.” industry is changing. control options for their “We a shift A D are _ Fseeing DPR I A in U customer G _ 1 2 . p d f “Owners P a g e are1certainly 1 2 /conscientious 0 7 / 1 2 , 9 packaged : 5 4 or A portion M animals,” Minnikin told Food Magazine. about colours and flavours and wherever awareness of imported products,” she said.

“In many cases this enables product to be supplied in fresh servings where product is not wasted or has the opportunity to spoil.”

“Growth varies in our industry.

“Customers are happy as long as their animals receive the best possible products for the best price.

“However we feel that there is certainly a trend towards any product that has significant health benefits.”

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www.foodmag.com.au | August 12 | Foodmagazine 25

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HEALTH

Looking after the next generation Ensuring the health and nutrition of our children is becoming more important than ever before in Australia, as Jessica Burke reports.

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not consume enough new study has found 95 per cent dietary fibre. of Australian children over two The poor nutritional exceeded their recommended intake was not subject intake of saturated fat. to socioeconomic Children generally had adequate backgrounds, with nearly consumption of iron, calcium, zinc all children from rich and and vitamin C, but the number of poor homes consuming too those consuming more than the 10 per much saturated fat. cent dietary intake of saturated fat, as Recent studies have recommended, was alarming. found that children’s As was the finding that one third of neighbourhoods to those surveyed was overweight or obese. contribute to obesity The University of Adelaide study, which rates,with children from was published in the Medical Journal of underprivileged backgrounds Australia, also found that children were more likely to be lacking in many essential nutrients. overweight than their Almost 70 per cent of children did not socioeconomically have enough Omega-3 polyunsaturated A D _ F D M O S A U G _ 1 2 . p d f fat,Pwhich a g eis essential 1 1 for 8 / brain 0 7 and / 1eye 2 , 2 advantaged : 0 4 PM counterparts. development, and over 80 per cent did

The latest study found that most of the saturated fat that the preschoolers were consuming came from dairy products, which lead the authors of the study to urge parents to consider feeding low-fat dairy products to children over two.

The research stretched over two years, and involved door-knocking more than 13 000 homes in Adelaide.

Children were then measured, blood samples were taken, and the food they consumed over the three-day period weighed and recorded.

High-Speed Ofine O and Inline Strapping Systems Sys stems Local L l solutio solutions l tion for f local l l business b i 24 Hour Service Seer and Technical Support Genuine M MOSCA Eco friendly products Factory tra trained MOSCA Engineers Full turnkey turnk project design Superior Mosca brand polyester and polypropylene strap Mosca’s automatic strapping machines have been standing the test around the world for over 45 years. They are solid, reliable and easy to operate.

Mosca Strapping Systems has developed a reputation for innovation, quality and customer service in the industrial packaging marketplace. German designed and engineered, our uncompromising standards have resulted in high quality automatic strapping systems that out perform our competitors.

MOSCA Quality and Reliability equals unparalleled Performance! www.mosca.com | +61 7 3266 3005 w 26 Foodmagazine | August 12 | www.foodmag.com.au

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HEALTH Removing obese children from parents This month there was much debate over whether obese children should be separated from their parents after welfare authorities in Victoria confirmed that they have intervened in some cases involving extremely obese children and sought court orders to have the children placed in state care.

Some obesity experts believe removing

Dialogue commitment.

It will reduce sodium by 15 per cent in all Kellogg’s cereals that exceed 400 milligrams of sodium per 100 grams by the end of 2013.

In September, a report in the Australian Medical Journal (AMJ) showed more improvements could be made to salt levels in breads, because voluntary reduction across Australia and New Zealandwas not enough.

Faster to Market.

Faster off the Shelf.

95 per cent of Australian children over two exceeded their recommended intake of saturated fat. children on severe obesity grounds cannot be justified because the separation itself is akin to child abuse.

The state department of human services did stress that child protection workers are only called in as a last resort for when the child is at risk of significant harm or abuse, and not solely based on the weight of the children.

Voluntary salt reductions The importance of nutrition, especially in children, is becoming more well-known and numerous companies are working to actively reduce the sodium, sugar and fat levels in their food.

In March, Kellogg Australia announced it had already met its 2010 commitment to reduce sodium levels in its Corn Flakes and Rice Bubbles by 20 per cent.

Kellogg’s was one of the leading Australian manufacturers to commit to lowering sodium levels, as part of the Reformulation Working Group of the Federal Government’s Food and Health Dialogue in March 2010.

New targets were outlined in the campaign, as the negative health impacts of a high-sodium diet became well-known.

Earlier this year, the National Heart Foundation of Australia found that if everyone reduced their salt intake by 3 grams per day, 6 000 lives could be saved every year.

As part of the Health Dialogue, for all ready-to-eat breakfast cereals that exceeded 400 milligrams of sodium per 100 grams, Kellogg’s, Sanitarium, Cereal Partners Worldwide, Woolworths, Coles and ALDI would reduce the sodium content of products by 15 per cent over four years.

Kellogg Australia’s 20 per cent reduction comes eight months ahead of schedule, with plans for the reformulated cereal expected to be rolled out by August this year.

Kellogg’s also confirmed it was on schedule to deliver more salt reduction, as promised in its Food and Health

“While there has been some improvement in sodium levels in New Zealand, and while the companies actively engaged in salt reduction efforts are to be congratulated, our data also highlight the need for continued action,” the report said.

Better results are likely to be achieved if the governments of Australia and New Zealand take committed leadership of these programs.”

How labels impact taste A Deakin University study released in March found that a “reduced salt” label on a food product will make a consumer experience a reduced level of taste, even if it is not in fact lower in salt.

Participants were asked to taste soups with the same salt content, but it labelled some as “reduced salt.”

Those labelled as low sodium actually had the same salt content as the other soups, but participants reported that they found them less tasty.

The study found that while it is clear that salt levels need to be reduced, better initiatives are needed to encourage lower intakes.

Introducing Shrink PS, a new innovation from Avery Dennison for the decoration of vacuum shrink bags.

Imagine the shelf impact you could create with a vacuum shrink bag that has the crisp, vibrant graphics of traditional self adhesive labels with the wrinkle free performance of direct print. That’s what Avery Dennison Shrink PS delivers.

And it delivers it in less time – and with lower total cost – than traditional direct print methods.

Shrink PS is a patent pending self adhesive decoration solution designed for the application to vacuum shrink bags prior to the vacuum shrink process. It offers sharp, dynamic graphics and a wider variety of printing options, including digital, while reducing pre-printed bag inventory and lead times associated with direct print. This all adds up to total applied cost savings compared to direct print with the crisp, clear, enticing graphic quality you’ve come to expect from self adhesive labels.

To learn more about Shrink PS come and see a live application demonstration at: Fine Food Melbourne Aust 10th -13th Sept Stand HI32 Foodtech Packtech Auckland NZ 25th - 27th Sept Stand 3041 contact us at food.beverage@ap.averydennison.com

www.foodmag.com.au | August 12 | Foodmagazine 27

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ON THE

SHELF

Something to celebrate Product Name: Celebration Ale Manufacturer: Coopers Brewery Ingredients: Brewed with an all malt beer and the finest

Hold the salt

of hops using Coopers famous yeast.

Shelf life: No specified shelf life on the beer but there is

Product Name: Salt Reduced Smoked Salmon Manufacturer: Tassal Ingredients: Tasmanian grown Atlantic Salmon

a ‘Best After’ date stamped on the bottle, which is 10 days from the day of packaging.

Packaging: Packed in 355 ml bottles and 50 L kegs.

Packaging design by On Creative.

Product Manager: Dr Jon Meneses, Brewing Manager, 08 8440 1813 Website: www.coopers.com.au, www.facebook.com/Coopers

(Salmo salar), sea salt, sugar, preservative (326), mineral salts (508, 451, 450), salt, preservative (262) May contain bones.

Shelf life: Once package is opened consume within 72 hours.

Packaging: Design Freeform Advertising & Cryovac and Reitsema Product Manager: Caroline Hounsell 03 9092 0700 Website: www.tassal.com.au

Natural beauty

Snack away the healthy way

Product Name: Equal Stevia Sticks Manufacturer: Merisant Company 2 Sárl Ingredients: Erythritol, natural sweetener (Steviol Glycosides# 1.4%), anticaking agent (cellulose powder), natural flavourings #Steviol Glycosides are the extracts of stevia leaves Shelf life: 3 years Packaging: Cowan Product Manager: Danielle Ross, 02 9235 8000 Website: www.equalstevia.com.au

Product Name: Kuranda Nut Bars Manufacturer: Aussie Health Snax Ingredients: Peanuts, Sunflower Seeds, Cashews, Almonds, Pecan, Pistachio, Macadamia, Hazelnuts, Cranberries (Cranberries, Sugar, Sunflower Oil),Sesame Seeds, Honey, Pepitas, Puffed Rice, Organic Rice Syrup Shelf life: 12 months Packaging: Semos Design Group Product Manager: Vince Peronace 02 9623 1033 Website: www.aussiehealthsnax.com.au

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Facilities, Retail Outlets, Butchery, Bakery, Seafood and all Safety Surfaces.

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NEW Release!

Wedderburn are stunning the market with striking new Printed Thermoform Film!

Throughout the last 12 months Wedderburn have been een working closely with our customers to develop Thermoform orm m ϐ Ǥ ǡ

exceptional print quality and savings for customers in both dollar terms and turn around times. Here’s what on one ne customer has to say;

cer Paringa Pet Foods is a medium size fresh meat producer we with big growth expectations. To reach the customers we iggn wanted and drive present sales we knew we had to re-design all our packaging. So I turned to Wedderburn for help. ly ally Being a small brand and contract manufacturer we continually ϐ Ǥ Initial plate costs and small batches meant our changeover costs were astronomical. Wedderburn were able to save us over 90% in plate costs compared with other manufacturers.

And the quality is unbelievable. I’ll say that again, the print quality is just stunning. Our sales are up over 30% this year and continue to climb.

Paul Meyer, Managing Director of Paringa Pet Foods Wedderburn are now very happy to be releasing this service to all consumers. ers.

So when you’re next choosing a label el manufacturing company, or even if you’re just wanting to review your existing labelling processes, contact the team at Wedderburn, we’ll be only too pleased to help.

$ave hundreds and in most cases thousands, on your set up costs. new ew p products roducts tto o llaunch aunch, have Do you you hav h avee n Do order reach? butt th bu the he minimum mini mi nimu mum m or ord der QT der QTYY is w way ay out o of re each? ůƟ ů you would like to market Do you have ŵƵůƟƉůĞ ^<hƐ ƚĞƐƚ ďƵƚ ĐĂŶ͛ƚ ĂīŽƌĚ ƚŚĞ ƉƌĞ ƉƌĞƐƐ͍ Do you have ŶĂƌƌŽǁ ůĞĂĚ ƟŵĞƐ͕ Žƌ ĂƌĞ ƐŝĐŬ ŽĨ ǁĂŝƟŶŐ ϲ ǁĞĞŬƐ Žƌ ŵŽƌĞ ƚŽ ŚĂǀĞ LJŽƵƌ ƉƌŝŶƚĞĚ Įůŵ ĚĞůŝǀĞƌĞĚ͍

Wedderburn are filling this hole in the market and offer: ; DŝŶŝŵƵŵ ƉƌŝŶƚ ƌƵŶƐ ŽĨ ϱ͕ϬϬϬ ŝŵĂŐĞƐ (based on 130mm x 200mm repeat) ; ^ĞƚƵƉ ĐŽƐƚƐ ĂƐ ůŽǁ ĂƐ ΨϱϬϬ ƉĞƌ ĚĞƐŝŐŶ (based on 4 colour process and white) ; dƵƌŶ ĂƌŽƵŶĚ ŝŶ ϭϬ ǁŽƌŬŝŶŐ ĚĂLJƐ ĨƌŽŵ ĂƉƉƌŽǀĞĚ ƉƌŽŽĨ &Žƌ ƐĂŵƉůĞƐ ŽĨ dŚĞƌŵŽĨŽƌŵ Įůŵ͕ Žƌ ĂŶLJ ŽƚŚĞƌ Call us on ůĂďĞů ƉƌŽĚƵĐƚƐ͕ Žƌ ĂŶ ĞǀĂůƵĂƟŽŶ ŽĨ LJŽƵƌ 1300 970 111 ƉĂĐŬĂŐŝŶŐ ŶĞĞĚƐ ĐĂůů ƵƐ ƚŽĚĂLJ͘ fo r your FREE sam ple

Wedderburn 1300 970 111

Other Wedderburn Labelling Solutions Self adhesive labels and tags Plain through to 10 colour Coupon labels Film printed up to 10 colours Gloss and matt laminate finishing

Solutions for Pet Food Manufacturers Weighing, Labelling Systems, Labels, Vaccum Sealers, Receipe Control Systems, Printers & Servicing

Gold and silver foil detail Mesh bag tags Freezer adhesives Wrap / sleeve labels Industrial tags / labels

1300 970 111 www.wedderburn.com.au enquiries@wedderburn.com.au

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NZ FOCUS

Foodtech Packtech on soon There's plenty of fantastic developments in the food industry across the pond in New Zealand.

Auckland, New Zealand: the home of Foodtech Packtech

T

the show based on last year’s highly he organisers of Foodtech successful NZ Food Innovation Packtech, New Zealand’s most Showcase profiling the Foodbowl anticipated event for food and facility,” White explained. beverage technology and packaging “Details are under wraps right now but companies are sure this year’s event will it’s exciting stuff. reflect the sector’s strong performance and “You’ll hear much more about that a on-going vibrancy. bit closer to the time. Another fantastic “It’s already clear that September’s feature is our hosting of the NZ Food show will be phenomenal,” XPO’s Awards alongside the show on Thursday Vanessa White said.

27th September.

“Top industry suppliers from all over to come face-to-face with the experts “Together, this makes the three days New Zealand are on board and we have behind the key innovations entering the the most important on the sector’s many overseas companies also raring to go.

New Zealand market. calendar and the many thousands of “Thanks to a continuous improvement The event will showcase the visitors will be guaranteed both good programme and the many special freshest ideas, latest technologies and business and a good time. features that make Foodtech Packtech a demonstrate the newest developments “One as yet unknown person will must-attend for sector professionals, the entering the food technology and have a visit to remember for life as all show continues to play an important role packaging technology market from more attendees who visit the Ford stand and in the packaging, processing and food than 180 prominent suppliers. get their badge scanned go in the draw to development industries.”

A series of development and business win an amazing Ford Territory TS AWD The exhibition kicks off at Auckland’s seminars will also run, and Foodtech vehicle valued at $65,000.”

ASB Showgrounds on Tuesday 25 endorsed and supported September, 27th.

A D _ Fconcluding O O D S YonMthe 1 M A Y _ 0 9 . p The d f biennial P a gFoodtech e 1 Packtech 2 2 / 4gives / 0 9 , Packtech 5 : 2 2012 5 Pis M by the Packaging Council of New sector professionals the opportunity “We will have a feature within

30 Foodmagazine | August 12 | www.foodmag.com.au

Zealand, the New Zealand Institute of Food Science and Technology, and Plastics New Zealand.

Many exhibitors are keeping secret for now what visitors will see, but some are prepared to offer a teaser or two into the products and services they’ll have on their stands.

There is sure to be plenty of extratempting show specials on some of these, and no matter your business or interest, there will be something to pique your interest at Foodtech Packtech 2012.

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PRODUCT SHOWCASE

Fast, easy and precise food

Auto dispensing made standard OPTIMUM Handling Solutions has announced that all PD20 Pal-Tec Pallet Dispensing machines now include an ‘auto eye’ feature as standard.

The ‘auto eye’ allows the operator to remain on the pallet truck platform throughout loading, as the need to manually operate the machine to dispense pallets has been eliminated.

The company says it designed the ‘auto eye’ concept in response to requests from production mangers

in the processing industry to make the dispensing machines more user friendly.

Optimum Handling Solutions 1800 066 008 www.optimumgroup.com.au

Testo has released the new Testo 108 for temperature measurements in the food sector.

Precise measurement is the only way for you to be able to check and guarantee the quality and freshness of your products and this how you ensure compliance with the HACCP guidelines.

The new testo 108 can be used for food storage, in restaurants or in the catering industry.

It features fast, precise measurement, is easy to use, with no training costs, a waterproof instrument and probe (IP67), conforms to HACCP and EN 13485 and can be used in harsh working environments without any problems.

Testo Pty Ltd (03) 8761 6108 www.testo.com.au

Perfect labels at high speed The Label Watcher Inspection machine from IntraVis Vision Systems of Germany, is a popular choice of Label Quality Control systems, particularly in the personal care consumer industry market, for major manufacturers such as Unilever, Beiersdorf, Alpla, Procter&Gamble and Henkel.

The Label Watcher has two industrial CCD cameras with lenses that can detect the label presence, identity, fit and rotation.

An optional module can also detect common label issues A D _ F O O D S Y M M A Y _ 0 9 . p such d f as Pprinting a g e errors, 2 colour, 2 4 / folds 4 / 0/wrinkles 9 , 9and : 2air3bubbles AM of more than 0.75mm. The high speed inspection system

can inspect up to 14 objects per second (28 labels back and front) and products found to be defective are ejected. Detailed statistics are generated for optimal quality management and can be integrated into any existing filling line or machine.

HBM Plastics & Packaging Technologies Pty Ltd (02) 8814 3100 www.hbm.com.au

Rheon Encrusting machines imagination your only limitation

Rheon products abound in meat & poultry, snack & health, bakery products such as cookies & bread dough’s, cheese, seafood, confectionary, pet food & even ice cream treats.

Continuous co-extrusioneg: sausage rolls, fruit bars and apple strudel.

Short or long log extrusioneg: croquettes & hot dogs.

Round deposits up to 300grams- eg: bread pockets, �lled meat & poultry meals, �lled doughnuts.

Ease of operation with a simple control panel from which machine operation is controlled at the press of a button. The panel also has 99 memories for calling up your products running speci�cations.

Low pressure feeding to handle materials gently & avoid fragile particulate breakdown in the casing and/or �lling - baked beans or vegetables into meat or potato casing, strawberries & cherries travel through the machine with minimal damage.

Options allow solid centres or a second �lling, open topped products, mosaic & shaped extrusions.

Stainless steel construction and fully hose-able for easy & sanitary cleaning.

Single, double and multi-head versions available. Test kitchen facilities available with development assistance.

FROM -

Phone: (61 2) 9939-4900 Fax: (61 2) 9939-4911 E-mail: ssyme@symetec.com PO Box 426, Brookvale NSW 2100 C22/148 Old Pittwater Rd, Brookvale NSW 2100

Visit our web site at

www.symetec.com www.foodmag.com.au | August 12 | Foodmagazine 31

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