Beverages & Food Processing Times April 2015

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7th Anniversary

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BnF Times

Completes 7 Years of Publications

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everages & Food Processing Times (BnF Times) has completed its seventh year and on its anniversary I heartily congratulate

all the readers, advertisers and subscribers . In the last seven year BnF Times has witnessed many ups and downs of the food processing industry and reported it. From the day we started our main aim has been to reach maximum people in the country via our latest updated news, our views and determination and also to help industry in processing more and more raw material. India’s food processing sector ranks fifth in the world in exports, production and consumption. The contribution of the food processing industry to the gross domestic product at 2004-05 prices in 2012-13 amounts to INR 845.22 Billion. India’s food processing industry has grown annually at 8.4% for the last 5 years.The industry is also one of the largest employment creators, with

growth in direct employment in the organized food processing sector standing at 6.05% between 2010-11 and 2011-12. The number of registered processing factories has increased from 35,838 in 2010-11 to 36,881 in 2011-12, marking a growth rate of 2.9%. BnF Times has been targeting this growing segment from the last 7 years and today it stands with more than 25000 readers every month. A small step in the right direction 7 years back has led to one of the largest databases of the food processing industry and with one of the most informative news portals for food processing industry in India, www.agronfoodprocessing.com. Beverages & Food Processing Times has already launched a bi-monthly supplementary newspaper 2 years back which is the one and only of its kind media for ice cream industry of entire South Asia, Ice Cream Times. BnF Times is also planning to launch a couple of supplementary publications in near future to cater fast growing segments of food processing industry in India. We thank all the readers, advertisers and subscriber who have supported us in the endeavor and assure them that we will put our 100 percent efforts to keep on increasing our content, circulation and readership.

Five collection centres in Punjab, Mega Food Park in Ludhiana

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unjab will have five primary processing/ collection centres and pack houses to support the agriculture output in the state. It will a part of the proposed Rs 140 crore multiproduct mega food park in Ludhiana. The park would be set up by Punjab Agro Industries on 100 acres of land at Ladhowal.

Five collection centres would be setup at village Muskabad (Samrala), Saholi (Nabha), Kangmai (Hoshiarpur), Lalgarh (Samana) and Babri (Gurdaspur). Besides, the state is going to identify five more such centres to develop world-class fruits and vegetables clusters. An official spokesperson of MoFPI said that Punjab has been growing rapidly in the area of food processing, which will definitely witness

transformation in the current beleaguered agriculture sector in the state. He said fetching big investments in food processing industries was one of the top priorities and the state had launched its agro-industrial and food processing policy to provide incentives to the entrepreneurs. “Punjab has tremendous potential and the state was launching special drives to make aware the farmers in this regard”, he added. About the proposed mega food park, he said, that 30-40 food processing units processing frozen fruits and vegetables, frozen French fries, milk, maize, bakery products, wheat pasta, tomato, chilies, snack foods, eggs, malt, honey, haldi etc would be set up there. He said 60 acres of land would be developed for food processing units and remaining 40 acres for development of common facilities. The spokesman said Punjab government was paying particular heed to propel the all-round growth of food processing and for this purpose the State Food Processing Development Council has been constituted to facilitate the investors, farmers and industrialists. He asserted the major thrust on crop diversification would bring more area under cultivation of maize, cotton, pulses, Basmati, sugarcane, fodder, fruits, vegetables and agro-forestry.

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DAIRY NEWS

Smaller Dairy Farms proved to be effective tool for increasing rural prosperity: NDDB

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DDB chairman T Nanda Kumar has said that smaller dairy farms have proved to be an effective tool for increasing rural prosperity in parts of Asia. “We are witnessing a high degree of urbanisation and have unacceptable levels of hunger and undernutrition. We have a large number of small farmers depending on agriculture for their livelihood. “In many Asian countries, while the contribution of agriculture to GDP is coming down, the number of people employed in agriculture is still high,” Kumar told reporters yesterday at Anand, about 35 km from here, on the sidelines of ‘Dairy Asia towards Sustainability’ conference. “Given these conditions, small-holder dairying has proved to be an effective instrument of intervention for increasing rural prosperity in many parts of Asia. “Therefore, the Asian model for growth has to be different from some of the other countries in the world,” Kumar said. The conference is jointly organised by United Nations’ Food and Agriculture Organisation (FAO), National Dairy Development Board of India (NDDB), Animal Production and Health Commission for Asia and the Pacific and Global Agenda for Sustainable Livestock. Small-holder producers are essentially the ones with a few buffalo or cattle, in systems closely

integrated into crop production through use of crop-residues such as rice straw. Increasing milk availability by another 50 million tonnes by this decade to reach the expected demand of 320 million tonnes would leave us with many choices, Kumar said, adding that the demand may go up due to various reasons such as climate change. “The production of milk in India stands at 138 MT and goes up by 6 MT every year,” he said. “We believe that we have to choose a different route to enable our small and marginal farmers produce the required quantity of milk within the country and help them get their legitimate share in the economic growth,” he said. Each society and country has to choose the best route it thinks appropriate, he added. “The NDDB can offer you lessons learnt in this difficult journey of its 50 years of existence ever since its establishment in 1965, provided you decide to choose this route,” Kumar said.

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Decorfil: Colours that create magic!

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ake baking and decoration has now moved beyond simple frosting and fresh cream to a more visual art. In an effort to draw in the eyeballs, cakes must now be dressed up to appeal to the consumer’s eyes long before dancing on his taste buds. Cake decoration now is not simply a craft but rather an art form, where creation takes on an edible form.

While many consumers prefer fondant there are still those to whom the taste doesn’t appeal, what then would be the best way to dress up a cake to appeal to these consumers? A Glaze is often a simpler, less manpower intensive method of dressing up a cake and making it more appealing to consumers. Dressing up your patisserie offerings has never been easier with the Puratos’ DECORFIL Glaze range. Recently launched at Delhi’s AAHAR Expo 2015, this trendsetter has taken the cake world by storm. This RTU coloured coating comes in 5 flavours ranging from the Neutral that is just a blank canvass, to the specific and extremely popular Strawberry, Pineapple, Melon, Orange and Blueberry flavours. These international favorites add more than just a pretty colour to the finished product , they add that special Puratos touch in the flavour. This flavour makes DECORFIL not just another pretty face in the market. The ease of use means that it is a ready to use product, thereby reducing the cost of wastage. DECORFIL sets itself apart from the competition due to its exceptional setting strength all the while extending the shelf life of the cakes. Making beautiful masterpieces has never been easier. Creating eye-catching customer attracting edible masterpieces that shine in your counter, choose across colours and flavours that excite both the eyes and the palate. Come, explore this new way of dressing up your creations, and make DECORFIL yours.

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NEWS


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To develop 72 Dairy Units in Nawanshahr Rs 3.8 cr loans sanctioned 25 per cent to general category and 33 per cent to female and Scheduled Caste (SC) beneficiaries was given. He said that there are two schemes under which dairy loans are sanctioned, adding that one scheme is of NABARD, in which a dairy farmer is given a loan up to Rs 5 lakh for a maximum of 10 milch cattle and other by the state dairy department, in which a subsidy amount of `12,500 is given per animal.

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ith a view to boosting dairy farming in the district, subsidized loans amounting to Rs 3.8 crore have been disbursed for setting up 72 new dairy units this fiscal. Deputy commissioner Ravinder Singh said the target of setting up new dairy units in the current financial year has been set at 83, out of which 72 have already been set up. He said under various dairy schemes, a subsidy of

He further said seven female beneficiaries were selected under women empowerment category, a special scheme to boost dairy profession amongst women. Under this, a total of `133.40 lakh had been given to three beneficiaries so far, he said. A subsidy of 50 per cent has been provided to all beneficiaries under the scheme, he added. Besides, 15-day training was imparted to the unemployed youth, who want to opt for dairy farming, he informed.

DAIRY NEWS

Parag Milk Foods

is planning to expand its brand to Delhi and Bengaluru

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aharashtrabased private dairy player Parag Milk Foods, which has been experimenting with the concept closer home, is planning to expand this premium and ‘by invitation only’ brand to Delhi and Bengaluru by 2016. Milklovers in Delhi and Bengaluru, too, can now enjoy a glass of morning milk fresh from the farm milked from a premium breed of ‘happy’ Holstein cows. Parag Milk Foods’ premium brand Pride of Cows costs Rs 80 a litre – nearly double the price of standard milk available in the market – and is currently delivered to the homes of Mumbai’s elite including Sachin Tendulkar, Hrithik Roshan, Nita Ambani, Amitabh Bachchan, Farhan Akhtar, and Kiran Rao. Not everyone can have access to the Pride of Cows

milk; a new customer comes through the reference from an existing one. Fresh milk is delivered to the client’s doorstep directly from Parag Milk’s Bhagyalaxmi Dairy Farm near Pune. The company will enter Delhi and Bengaluru in 2016. There are also plans to come up with brand extensions such as breakfast milk for kids, an energy-based milk containing a mix of fresh fruits. So far, the company has invested Rs 150 crore in the project and aims to break even by next year. The cost of setting up the farm alone, which has now become a major site for dairy tourism attracting 1,000-1,200 visitors every month (school children and celebrities), was Rs 70-100 crore. Mahesh Israni, chief marketing officer, Parag Milk Foods, says: “The brand has been conceived at an exclusive level of marketing and a new customer comes through reference from an existing customer. One can also register through the website, but our executive visits the prospective client’s house and explains the product thoroughly. We want to forge a long-term bond with our clients.” The company currently has a consumer base of 16,000-18,000 in Mumbai and Pune and at any given time, there are around 12,000 active customers.

According to Israni, the dairy farm functions around the concept that ‘happy’ cows give better quality milk. Thus, special care is taken to keep the breed of 4,000 Dutch Holstein cows happy and in the best of health. “The cows are pampered with music, specially designed nutritional meals, and showers when the temperatures soar above a certain comfort level for these milch animals,” says Israni, adding the animals are free to roam about across the farm and there milking is never forced. Parag claims there is no human interface from the time the milk is collected from the cows at a rotary parlor till the time it reaches the consumer. Expansion to other cities is thus only possible when the company comes up with dedicated farms nearby the cities they plan to enter. One Holstein cow costs Rs 1.75-2 lakh, compared with Rs 80,000-90,000 for an Indian cow. At the moment, the contribution of Pride of Cows brand to the overall turnover of Parag, which sells milk and milk products under the Gowardhan and Go brands, is negligible. Israni says the idea is primarily a brand-building exercise, aimed at promoting unadulterated milk fresh from the farm to home.

For Updated News Everyday logon to www.agrofoodprocessing.com

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FOOD SAFETY NEWS

OctoFrost revitalizes the IQF Industry and raises the bars for Food Safety and downtime

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QF Frost AB, a global leader in high-performing IQF solutions, is pleased to announce the launch of the new IQF freezer, OctoFrost, which is designed to meet the increasing demands from food producers for reliable food safety, long run time and high yield. IQF Frost will be showing the OctoFrost at the Anuga Foodtec fair in Cologne, March 24-27th.

Larsson, CEO at IQF Frost. “Understanding our customers’ environment play a key role when working with product development. Our customers should have the highest value of ownership”.

that will significantly decrease handling time for the plant staff. Energy friendly LED-lights have also been installed to improve cleaning inside the freezer.

Inside the freezers, the patented removable bedplates have been given a new click design

An IQF freezer is a long-term investment and customers are looking for freezers that are reliable and durable for freezing fruits, vegetables, cheese, seafood, meat and poultry. The octagonal design and aerodynamics of the OctoFrost is optimized for high capacity per hour, yet is sustainable with usually more than 10% less energy consumption then similar products on the market. A dry air infusion system has been installed in the operating panel, lights and motors, eliminating the challenge that many food producers face of condensation, due to the variation of temperature in the freezer. Additionally, the freezer has been reinforced with stronger fins in the coil and an anti-slip shockproof floor.

The OctoFrost is unique by its mono-block design and easy interior access for reliable and swift cleaning. It has been equipped with air knives that blow high pressure air in the coil during production, a feature that will help keep the coil free from product particles, prevent it from building up snow and optimize run time between defrost. To decrease down time and speed up the cleaning process more spray nozzles for warm water have been installed. “Every minute saved in decreased down time means more earnings for our customers”, says Rasmus

WHO urges SouthEast Asian nations to make food safety a priority

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he World Health Organisation (WHO) has urged nations in the South-East Asia region to make food safety a priority, as close to 700, 000 children die of diarrhea in the region every year. WHO has released the statement ahead of World Health Day on 7 April. The Organisation stressed the need for nations to come up with food safety policies matching the legislation, and robust strategies to tackle the threat that's being aggravated by climate change and its impact on food production, emerging biological and environmental contamination, new technologies, new foodborne infections and diseases and antimicrobial resistance through the food chain. Bangladesh, Bhutan, North Korea, India, Indonesia, Maldives, Myanmar, Nepal, Sri Lanka, Thailand and Timor-Leste form WHO's SouthEast Asia Region. WHO South-East Asia regional director PoonamKhetrapal Singh said: "These existing and emerging threats call for urgent action. Countries must put in place comprehensive food safety policies matched by legislation and robust food safety strategies. And they must be stringently implemented across the food chain. This requires a trained workforce and an informed and empowered consumer." WHO also said that the policies need to be multisectoral, with a preventive approach that should be applied by enhancing farming practices with the use of agro-chemicals or veterinary drugs only as prescribed. Speaking about the challenges of food safety in today's world, WHO said that the food chains now travel through long distances and comprise multiple steps between production and consumption. Such a process poses the risk of contamination of a product of one country spreading to another. The organization stated that it supported countries that followed Codex Alimentarius, a collection of international food standards, guidelines and codes of practice for food production and food safety. Food safety is one of the key focus areas under the International Health Regulations - IHR 2005 - which includes events of all public health emergencies of international concern that involve contaminated food and outbreaks of foodborne diseases.

Beverages & Food Processing Times

A known problem in the industry is the challenge of quick freezing sticky products. Many times the products come out in lumps, which decreases the value of the product. A solution to this challenge is a combination of vibrating product beds and a pulsator. The pulsator in OctoFrost™ will use the fans capacity to pulse the air in a much more efficient way to separate the fruit dices. IQF Frost has been on the market since 1999 and has close to 200 installations worldwide. The freezers are manufactured in Sweden and the company is driven by its vision to make sustainable food available for everyone, everywhere. To have a clearer communication the company will starting April 1st 2015, change its name to OctoFrost AB, and the service company ProFrost AB will be named OctoFrost Technology. Both companies will be part of OctoFrost Group with existing owner structure.


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BEVERAGES NEWS 7th Anniversary 8 Vol. 7, Issue11-April-2015 PepsiCo commissions its largest Indulge Beverages to launch India beverage unit in Andra 10-12 blends by end of 2015

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epsiCo India commissioned first phase of its largest beverage plant at Sri City, in Chittoor district of Andhra Pradesh,

earmarking R1,200 crore for the production facility. The state-of-the-art plant will be the company’s most water-efficient beverage plant in the country, said Pepsico officials. The facility was inaugurated by Andhra Pradesh chief minister N Chandrababu Naidu and chairman and CEO of Pepsico Indra Nooyi on Friday. The facility will have nine production lines that will make beverages including fruit and sports/energy drinks and carbonated soft drinks over a period of next five years. “For more than 25 years, PepsiCo has been investing in the Indian economy and its people,” Indra Nooyi said. “As we move forward, the commitment gets even more stronger. This plant is an investment in India’s future,” she said. Spread across 86 acres, the first line started manufacturing operations. When the

plant becomes fully operational, it is expected to benefit over 32,000 farmers due to local sourcing of mango and other fruits. According to Nooyi, the facility built on the lines of global greenbuilding standards is the most waterefficient plant in the country. “We will also work with Sri City for water re-charge and rainwater harvesting projects,” she added. The company, which has 22 brands in its product portfolio of both food and beverages, had $1 billion in retail sales annually. Meanwhile, Sri City SEZ located on 8,000 acres, currently houses more than 106 companies and employs over 25,000 people directly. Of the 106 companies, 16 companies are from Japan and nine from the US. The overall investments in Sri City is about R25,500 crore till date which includes ground breaking of 11 units of R1,000 crore and inauguration of 11 units entailing an investment of R1,500 crore. Further, the GVK group is also planning to set up a hospital, a medical college and a research centre at Sri City with an initial investment of over R100 crore across 25 acres.

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elhi-based Indulge Beverages, a manufacturer of Bonhomia tea and coffee single serving capsules, is now focusing on launching more variants and blends to offer a diverse product range to its clientele. Elaborating on the same, Tuhin Jain, co-founder and director, sales and marketing, Indulge Beverages stated,

“We are the pioneers in the India market for tea capsules and have carefully curated coffee capsules. We are looking at adding 10-12 more blends to our product portfolio by the end of 2015, and are soon launching two more coffee capsule variants with dessert flavours having overtones of chocolate and vanilla.” Presently, Bonhomia is available in four variants, Free Love with Espresso Coffee Intensity 4 , Dark Deeds of Intensity 7, Green Peace, Mild Green Tea and Dark Pot, and Classic Breakfast Tea, all compatible with the Nespresso machines available in India. Talking about this endeavour, Jain believes that in India, coffee capsules are more of an evolving concept. “This concept is just

Hector beverages expanding aggressively to tab Indian fruit Juice market

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ector beverages has aggressive expansion plans to tap the Rs 4,000 crore fruit juice industry in India, primarily dominated by international players in the market. Paper Boat, one of the fastest growing brands from Hector Beverages, has extensively mapped traditional beverages across different parts of India. Their

current product range consists of various flavours such as Aamras, Jaljeera, Aam Panna, Kokum, Jamun ka Kala Khatta, Golgappe ka Pani. After experiencing healthy sales growth in markets like Delhi and Bengaluru, the company is planning to launch a manufacturing facility in Mysore to strengthen its position in other key markets including Mumbai, Pune, Hyderabad and Chennai by setting up depots and distribution centres. Speaking exclusively to Food & Hospitality World, on the company’s expansion plans, Neeraj

Kakkar, chief executive officer and founder, Hector Beverages said, “We are coming up with a manufacturing facility at Mysore, which is our second plant after the Manesar plant in Gurgaon. We have acquired five acres of land in the Kadakolla industrial area. The plant will employ around 80 people and is expected to be up and running by the second week of March 2015. We are investing over Rs 20 crore into this project which is a part of the Rs 60 crore that were raised in 2012 from Sequoia Capital, Catamaran Ventures and Footprint Ventures.” The company recently launched an array of new traditional variants including Chilled Rasam, ice tea in two flavours: Ginger Lemon and Tulsi. With the launch of its new manufacturing unit in Mysore, the company is planning to launch new variants including: Thandai, Kanji, Neermore (Buttermilk) and many more. Presently the company sells around 1.5 million pieces of its products every month in key cities including Delhi and Bengaluru. Aamras is one of the top selling variant. Talking about their footprint in the market, Kakkar added, “We have already tapped the Indian consumer base in the US, UK, Canada, Australia and Dubai. Going forward, we aim at expanding our reach to other countries as well.”

about a decade old but has gradually moved from being a high-end luxury product to affordable luxury in most European and other countries. However, in India, only the urban rich and well travelled are aware of these products. Globally, the Nespresso machine and the market for single serve coffee capsule is huge, but now, we are observing a rising demand among consumers in India for Nespresso machines and thereby of coffee capsules,” he added. With around one year into operations, Indulge Beverages has its presence across major cities like Delhi, Mumbai, Hyderabad, Bengaluru, etc through partnerships with major retailers like Godrej Group’s Nature’s Basket, Future Group’s Food Bazaar, Modern Bazaar Department Store and other gourmet food shops. Bonhomia capsules are also available at the Oberoi Group’s villa properties, Starwood and Pullman Hotel’s executive rooms and suites to name a few. Bonhomia is also available across the country, including Tier II and Tier III cities through the company’s online portal and at various e-commerce portals like Snapdeal, eBay, Fabmart etc. Indulge Beverages is looking at going international and has done various product tasting sessions in Singapore, Middle-East, France, etc.

Coca-Cola brands to see new packaging in Europe

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oca-Cola Co. is implementing sweeping changes across all its brands’ packaging sold in some European countries. The branding will all look the same while maintaining the brands’ different colors and including more detailed descriptions of the soda’s contents on the front.This includes the original, Diet Coke, Coca-Cola Cherry, Coca-Cola Vanilla, Coke

Zero, and its most recent addition, Coke Life. Along with the new physical branding, CocaCola will be doubling its marketing budget for its healthier brands as well.This “one brand” strategy “also serves to highlight how confusing Coke thinks its brand extensions have become.” It’s hard to tell whether a move like this will change things all that much, which may be why CocaCola is trying this strategy out in Europe before introducing it to the U.S., if it ever does.In other news, Coca-Cola Bottling Co. released its fourthquarter and full-year 2014 earnings and saw some of its own successes. The Coca-Cola bottler reported increased profits in fiscal year 2014 at $31.4 million, over $27.7 million last year. It also reported higher revenue for the year at $440.6 million, over $394.3 million reported last year.

Mountain Dew to ‘shine’ in a new light

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new Mountain Dew is clearly coming to stores soon — literally, the new soda, DEW shine, will be clear and contain real sugar as opposed to high fructose corn syrup.PepsiCo has made “throwback” products

Beverages & Food Processing Times

of its sodas before, that have real sugar instead of high fructose corn syrup due to consumer request.Some are not happy with the packaging, however, as it resembles craft beers. “The line between alcoholic and nonalcoholic beverages is intentionally being blurred by producers of both. Consistent with other premium soft-drink brands, Mtn Dew DEWshine is packaged in a standard glass bottle.Considering soda sales are in a bit of a funk, perhaps this latest “throwback” attempt might inspire some more sales. However, opposition to the packaging could certainly hurt the brand’s image, not to mention its name likeness to moonshine, despite containing no alcohol. USA TODAY reports Mountain Dew officials are aiming the product at men in their 20s and 30s.


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INTERVIEW

‘Make in India’ will help Indian food processing industry in two ways, Labour reforms & alignment to Global practices Paradigm Services started16 YEARS BACK by a group of professionals from different sectors of food industry is an known organization with good resources to meet the requirements of demanding global quality & food safety standards in Beverage, food & Allied sector. Recently our team had an interaction with Atul O Ganediwala Managing Director of the company about the indian processed food industry and their business. Atul and Manan Bajaj General Manager-planing & Consulting, gave us some worth raeding replies, given below:

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Atul Genadiwala

ow do you look at the present situation of the Indian food & beverages industry? India is the second-largest producer of food (205 million tonne

fruit and Vegetable annually) and has the potential to be the largest on a global food and agriculture canvas. However, it processes around 5 per cent of its output which is very less compared to other countries. The fact that a large volume of India’s agricultural output is wasted is an alarming signal for the country.

and competing with Global Players, would require change in mind set of food business operator/ Teams and readiness to spend additional cost on Implementation of day to day practices. We feel, this alignment is Need of an hour and it will result into viable and sustainable business practices meeting ever changing consumer requirements and help Industry growing to different heights and thereby contributing to the growth of Country. What opportunities do you see for allied segments of the food & beverages industry in the country, such as machinery manufacturers, raw material suppliers and service providers? With the growth of food processing Industry to produce more and better, Industry would require upgradation in machineries, utilities and hence machine manufacturers will also grow. Raw material suppliers including farmers will also improve and grow along with the food processing

industry with better opportunities to produce better products get better competitive prices from demanding customer. What is your focus area/service in food & beverages industry and how is your company doing? We are in Training and Consulting business for internationally recognized standards in the field of quality, food safety and social accountability. We also consult our clients in the development of State of the Art facilities aligned to Industry global practices here by preparing them for upcoming customer specific requirements. What are you future plans for further progress of your business this year? With the growing emphasis on food safety through FSSAI and looking forward to align Indian

The food processing industry is growing at the rate of 13 per cent, and for the Indian economy and the overall growth of the nation, the growth of food processing industry is very important, as it takes care of farmers and employment for skilled and unskilled labour. The food Industry is highly decentralised, but a large number of units are in the cottage, household and small-scale sectors, having small capacities of upto 250 tonne per annum. Since 2000, the food processing industry has seen large growth in readyto-serve beverages, fruit juices and pulps, dehydrated and frozen fruit and vegetable products, pickles, mushrooms and ready-mix vegetables. These small-scale units engaged in these segments of processing are exportoriented. The value-addition of food products is expected to increase from eight per cent to 35 per cent by 2025. Fruit and vegetable processing is also expected to increase from the current level of four per cent to 25 per cent of total production by 2025. India Food processing Industry have potential to grow as the base raw material, which is required is available in plenty and is very high percentage of which is getting wasted as of now. Growing processed food industry will not grow alone and will definitely play a major role in improving economic conditions. Government of India is targeting food processing sector for ‘Make in India’ initiative, do you think this will benefit food processing industry, allied segments and country as a whole? We feel, ‘Make in India’ is going to help Indian food processing industry in two ways-a) Labour reforms and b) alignment to Global practices. We think it is going to be a challenging task, as Indian Industry is full of Small and Medium scale companies

For Updated News Everyday logon to www.agrofoodprocessing.com

Beverages & Food Processing Times

food Industry to Global practices, we will get better opportunities to serve industry. Do you think efforts by Government of India are enough for this sector? Any suggestions? Although, Government is trying to improve

Manan Bajaj

the food industry and promoting exports business with different initiative but review of Indian regulations/acts to for alignment to changing scenario is since long. This will help us improving the current image of Indian food industry globally.


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Food Ingredients market of India to grow 12% CAGR

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he growing demand for ready-toeat food products coupled with rising preference for natural or organic food ingredients will grow at a compounded rate of 12 per cent and drive the food additives market in India over the next five years, a research firm recently.

According to a report from TechSci Research, the growth in per capita disposable income and rising urban middle class population are among the key market contributors which will drive the growth. "India has been witnessing significant rise in food consumption level, prevalence of processed and packaged food, convenience food, alcoholic and

non-alcoholic beverages, bakery items, readyto-eat food products and cereals. These trends are expected to drive remarkable growth in the demand for food additives in the country over the coming years," the report said. According to the report, due to cultural and regional diversities, the pattern of food consumption is not uniform in India resulting in the western region generating the highest demand for food additives. "The region is expected to continue spearheading the market due to the presence of a large number of food and beverage manufacturing companies in the states of Gujarat and Maharashtra," it said. "Indian food additives market is dominated by the flavours segment due to their substantial use in beverages, savory items and cereals. With rising incidences of health problems like diabetes, consumers are also shifting towards all-natural, low calorie sweeteners such as Stevia. As a result, sweeteners are most likely to witness faster growth over the next five years and emerge as the leading segment in India food additives market through 2020," said research director at the firm Karan Chechi.

FOOD INGREDIENT NEWS

Arla Foods Ingredients reveals efforts to reduce malnutrition in CSR report

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rla Foods

Ingredients has published its first independent CSR report, in which it reveals its participation in a new ethical initiative that seeks to make affordable and nutritious food solutions available to low-income families in Ethiopia. The initiative is called the GAIN Nordic Partnership and is driven by the Global Alliance for Improved Nutrition (GAIN), in co-operation with businesses from across the food supply chain. Although there are more than 54 million cattle in Ethiopia, low milk yield per cow and poor distribution limit the availability of affordable dairy products in stores. In an effort to address this, Arla Foods Ingredients – along with its partners in the GAIN Nordic Partnership – is providing processing expertise and whey ingredients for local production of an inexpensive, multi-nutrient powder supplement for children up to the age of two.

The initiative is explained in detail in the new CSR report, which says: “Joint venture initiatives established through GAIN are not about food aid. The key to their enduring success is that they are economically sustainable for all involved. Our need for the latest knowledge and technologies is insatiable if we are to identify sustainable new ways to feed the growing global population and document the effects of whey nutrients.” Also in the CSR report, CEO Henrik Andersen hails Arla Foods Ingredients’ role in moving whey protein from being a low-cost by-product of cheese-making to become a high value ingredient. “The rise of whey must be one of the dairy industry’s all time greatest sustainability stories,” he writes. “Today, the former waste product is a sought-after raw material.” The report goes on to explain how, in the past couple of years, Arla Foods Ingredients has worked specifically to make good use of the lactose found in the by-product of protein concentration – whey permeate. In November 2014, for example, the company inaugurated a new facility for dry-blend lactose, which represented an important step forward in terms of increasing the amount of whey permeate that is redirected into infant formula. In addition, Arla Foods Ingredients is contributing to a move to establish a global codex standard for whey permeate powder by 2017. Henrik Andersen commented: “Many of the initiatives we outline in our new CSR report have their roots in our ‘Quality starts here’ platform – a fundamental driver of our corporate strategy. Our commitment is to use this programme to unfold the full potential of whey and create a successful and sustainable business model for the long-term. As a business, our primary mission will always be to meet the needs of our customers, but we also recognise the impact we have on the wider world and the communities where we operate. Our first independent CSR report embodies this commitment and outlines the steps we have taken – and will be taking in the future – to fulfill it.”

Dairy giant Amul now plans to market Camel Milk in India

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t’s good news for fitness freaks as dairy giant Amul now plans to process and market camel milk in India if they get a nod from the Food Safety and Standards Association of India (FSSAI). According to reports, they plan to carry out this project with the Gujarat Cooperative Milk Marketing Federation’s (GCMMF) Sarhad Dairy located in the Kutch region. “FSSAI is yet to formalize standards for camel milk. The animal husbandry departments of Gujarat and Rajasthan, which have a significant population of the animal (Bikaner also has the National Research Centre on Camel, NRCC) have approached FSSAI in this regard.” For those flinching at the thought of this, a quick Google search reveals several health benefits. Camel milk is said to be good for not only the immune system, but can also benefit those who are diabetic. Some people also believe that it has significant good effects on children with autism. RS Sodhi managing director of GCMMF believes that while it is popular in West Asian countries, it may be some time before the business takes off in India. “It’s a very niche product, and no other organized dairy in India is processing it at the moment. It is consumed in West Asia for its health benefits.” Another issue with selling camel milk in India is its salty taste. However, with the host of health benefits and a household brand like Amul marketing the product, camel’s milk may see some demand in India.

Beverages & Food Processing Times


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Vol. 7, Issue 11-April-2015

FOOD INGREDIENT NEWS

New Ingredient concept for seniors proves that ‘Age is just a number’ R

people represent.

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rla Foods Ingredients has launched Nutrilac® Ageless, a new whey protein + calcium ingredient that will enable dairy companies to create yoghurts and desserts for active seniors who reject the idea that they are ‘old’. This year, Europe will have twice as many consumers aged 55 to 74 than young people aged 15 to 24 – a trend that is mirrored elsewhere in the world – highlighting the growing importance of this demographic group to food manufacturers. Older people tend to be more focused on maintaining good health than younger shoppers, presenting an opportunity for dairy companies to develop products that help them live their lives to the full. Nutrilac® Ageless taps into this opportunity by offering an ingredient concept that makes it easy for dairy companies to produce 100% natural whey protein and calcium-rich stirred yoghurts and fermented desserts that will appeal to older consumers. Significantly, shoppers aged 50 to 64 spend 50% more on food and drink than the under 30s , highlighting the strong commercial potential that older

Kasia Kandulski Lindegaard, Marketing & Business Development Manager at Arla Foods Ingredients, said: “For millions of older people today, age is just a number. They don’t consider themselves to be ‘old’ and see no reason why they can’t continue to live a full and active life. However, they also understand that they are not as young as they were, and that they need to ensure they eat well to stay fit and healthy.” She continued: “Nutrilac® Ageless gives dairy companies the key to this profitable market. Research shows that 81% of consumers understand the value of protein in their diet , and awareness of the importance of calcium to maintain healthy bones is also very high. This means manufacturers will already be pushing at an open door when they market high protein and calcium products based on Nutrilac® Ageless.”

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The secret to success, says Kasia, is to create products that don’t make senior consumers feel like they are elderly. “Older consumers value highly nutritious products in small portion sizes, because they tend to eat smaller portions and less often than younger people. However, it’s important not to overplay that a product is aimed at seniors. Instead, dairy companies should focus on the benefits of the product which, in the case of Nutrilac® Ageless, will really resonate with shoppers of advancing years because it offers them more of the key nutrients they really need in a product type and format they already enjoy eating.”

Seafood exports will touch $ 5.5 billion mark

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igher export of frozen shrimp to the United States is likely to take Indian seafood exports in the current fiscal to above $5.5 billion having crossed $4.72 billion in first 10 months. Marine Products Export Development Authority (MPEDA) has set a target of $6 billion for the fiscal. Exports during the first 10 months of the fiscal are seen higher by 5% in volume and 10% in value when compared with the corresponding period of last fiscal. During the last fiscal seafood exports touched $5 billion mostly on the strength of higher vannamei exports. India is the second largest fish producer in the world after China and accounts for nearly 6% of global fish production. MPEDA sources said that 875,791 tonne of seafood was exported from the country during April 2014 to January 2015 valued at R28,084 crore as against 835,125 tonne valued at R25,402 crore during the previous year. There was a hike of 4.87% in volume terms and 10.56% in value terms. Exports in dollar terms were up by 11.84% to $4.72 billion, as compared to $4.22 billion. Frozen shrimps continued as principal item in exports with 17.43% growth at 300,147 tonne, as compared to 255,603 tonne exported in the same period last year. Frozen shrimps account for 32.47 % of the total volume of seafood exported

Beverages & Food Processing Times

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Rice Crispy Drinking Chocolate


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Vol. 7, Issue 11-April-2015

South Korea for Halal Food

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outh Korea has signed an agreement with the United Arab Emirates on halal foods, hoping it will contribute to its goal of

growing halal exports globally from US$680m to $1.23bn by 2017. Park Geun-hye, South Korea's President visited the UAE during March to outline the initiative under which, Korean halal food manufacturers will be

South Korea's Ministry of Agriculture, Food and Rural Affairs said the MOU between the two countries would mean the country's companies can "easily get halal certification" and ship their products to the UAE. Following the agreement, South Korea has established the Halal Food Agency to analyse and develop certification standards for halal foods as well as outline production guidelines.

Five star chicken will spend Rs 3,100-cr in expansion

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PF (Charoen Pokphand Foods) which operates the Five Star Chicken small-format quick-serve retail chain, that is taking on US multinationals like KFC and McDonald's, has

"We are planning to double the number of our 'Five Star Chicken' stores in the next five years and plan to enter the packaged food business here in the next year or so," Sanjeev Pant, senior vice-president for the food business told.

drawn up an aggressive expansion plan for India that includes investment of $500 million (Rs 3,100 crore).

The investment of $500 million will go towards expanding all three units: shrimp, poultry and food. CP Foods in India has 260 Five Star Chicken stores in Bengaluru, Chennai, Coimbatore, Mysuru, Kochi, Salem, Kozhikode, Goa and Hyderabad. The company's revenue was $600 million (Rs 3,720 crore) last year and is growing at 10-15% annually, he said. The shrimp seg ment contributes 50% to revenue, poultry feed and farming 45%, and the newlylaunched food business the rest.

CP Foods, a part of the diversified CP Group, that is Thailand's largest private enterprise with annual sales of over $45 billion, is especially bullish about the Indian processed and packaged food industry. It expects the company's food business, which now contributes 5% to revenue, to grow three-fold in the next five years.http://articles. economictimes.indiatimes.com/images/pixel.gif

"The booming online business in India would also provide us enough room to grow faster. We are now talking to a few online food delivery players who can support us to take our products online", Pant said. The company has been following a lowcost operating model for its small-format quickservice restaurants by keeping the store area at 100-200 sq ft.

Birla Sugar goes for business restructuring

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he management of Oudh Sugar Mills and Upper Ganges Sugar Industries, the brands under Birla Sugar, has decided to go for a business restructuring. This move would mean both the brands would go through a process of liquidation, followed by a merger, and the replacement of the same by four new listed entities. The idea behind the process is to house the businesses of the company, mainly tea and sugar, under different heads. “We are pleased to announce this restructuring exercise and are hopeful that this will bring out the desired results. The proposed restructuring would entail liquidation of OSML and UGSIL through

India must follow Brazil’s example in battling Ultra-Processed Food For example: Indian guidelines encourage a variety of foods. Brazilian ones encourage eating in company .Indian guidelines warn against too much salt. Brazilian guidelines warn against any ready-to-consume `ultra processed food’. This last idea matters a great deal in India. The Delhi high court wrestled with defining `junk food’, following the PIL by the Delhi-based Uday Foundation to ban such food in schools.

able to receive certification for their products from the Gulf state more easily. Park said there is huge potential for bilateral cooperation in the food industry, especially on halal food. "The two nations will be able to take the lead in the global food industry if they use a reliable halal certification system, develop mutual trust and create menu items favoured in both countries."

the process of merger and replacement of the same with four new listed entities,” press release by the company said. The process would also put the Uttar Pradesh and Bihar Sugar manufacturing facilities in two separate new entities, since the dynamics of the sugar industry in Bihar and Uttar Pradesh are vastly different, according to a press release by the company. “The Food Processing, Tea and other business have different dynamics and have matured significantly over a period of time therefore it is intended to house them into separate entities to facilitate future growth and monetization of these businesses,” stated a press release from the company.

FOOD PROCESSING NEWS

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n Brazil, Russia, India, China and South Africa the economy isn’t the only thing growing. So is the risk of dying from heart disease, diabetes, respiratory disease or cancer. The irony of these diseases is that while they’re hard to treat, they’re easy to prevent. In its decision, the court demanded the restriction of junk food available in and around India’s schools. This is a terrific first step in reducing the consumption of foods that are likely to seriously harm Indian children’s health in the future. But India’s nutritionists and paediatricians have called for more aggressive responses to tackle the diabetes epidemic. Mustering the will to do what’s necessary can be hard, especially given an increasingly powerful food industry. Good science can help, both by informing good policy and generating the good will necessary to create it. Consider, for instance, the science behind Brazil’s recent advances in public health. Usually, the way that science appears to consumers is when it’s regurgitated in governmental dietary guidelines.India’s guidelines contain sensible, if dyspeptic, advice which comes with the ring of benevolent dictatorship about it: Consume healthy food! Don’t consume unhealthy food! Breastfeed! The Brazilian government is no less concerned about its citizens, but the approach is rather different. Rather than advise what to eat, the just released national official dietary guidelines encourage citizens to think about how to eat. They seem to trust their citizens’ intelligence a little more.

The food industry claimed that there is no such thing as junk food. This came as a surprise both to anyone with basic common sense, but also to the Brazilian government, which has adopted ideas based on the nutritional science of worldclass epidemiologists like Carlos Monteiro at the University of Sao Paulo. Monteiro came across the idea of `ultra-processed food’ while he was trying to solve a mystery. Brazilians were dying of diseases associated with diet, the kinds of illnesses that are killing and maiming millions of Indians. What was strange, though, was the reason. Nutritional science warned that eating more salt, fat and sugar is bad.But Brazilians’ increase in waistlines, morbidity and mortality couldn’t be explained by a massive increase in eating these things. What changed was the way salt, fat and sugar was entering Brazilians’ stomachs. Monteiro discovered that extra salt, fat and sugar wasn’t coming from culinary preparations or even from simple, ancient processed foods like breads and cheeses, but through combination in `ultraprocessed foods’. Of course, just like their counterparts in India, Brazil’s rural poor need to process their food to prevent spoilage and waste. Traditional food processing is vital for people to be able to feed themselves, and Brazil’s guidelines are geared toward supporting small-scale farmers. Dried, fermented, pasteurized, cleaned foods weren’t what Brazilians were eating more of, though.

South Africa’s Pioneer Foods eyes acquisitions in five African countries “Our focus is on larger economies with a higher population; for example, Angola, Kenya, Ethiopia, Tanzania and Ghana.”

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outh African food and Beverage Company Pioneer Foods is considering acquisitions in at least five more African countries.

This decision follows the company’s recent acquisition of 50.1% of the shares in Nigerian competitor Food Concepts for $7m. Food Concepts operates quick-service restaurants and bakeries in Ghana and Nigeria, the largest economies in Africa. The company’s head of international business ThushenGovendersaid: “We’re talking to entrepreneurs for opportunities to expand our investments in the continent. Our focus is on larger economies with a higher population; for example, Angola, Kenya, Ethiopia, Tanzania and Ghana.”

Beverages & Food Processing Times

Governder said that the Food Concepts acquisition would help the company expand beyond South Africa. Pioneer specialises in producing cereals, dried fruit products, baking ingredients, rusks, juices, eggs and condiments. The group has three divisions. Essential Foods manufactures wheat and maize products, trades in rice, beans, lentils and dried vegetables, and has large bakery operations. Groceries, previously called Bokomo Foods and The Ceres Beverages Company, produces cereals, rusks, biscuits, cake mixes, baking aids, instant mash potato, dried fruit products, nuts, spreads, dehydrated vegetables, processed salads, fruit juices, carbonated soft drinks and fruit concentrate mixture. The company also has international joint ventures with Heinz Foods and Bowman Ingredients. Pioneer will focus on acquiring existing African businesses, as starting completely new companies would take longer to deliver returns on investment. “Our approach to investing in Africa is long term, [even if] over the short term there may be concerns. In the case of Nigeria, the exchange rate and growth level could be of concern because of the dependence of the economy on oil, [though] because of the younger population, we see a lot of opportunities,” Govender said to Bloomberg.


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Vol. 7, Issue 11-April-2015

7th Anniversary

Odisha will have one more seafood park

SEAI Condemn Ban on Shark Fin Export from India

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he Seafood Exporters Association of India (SEAI) opposed recent notification by the Directorate General of Foreign Trade (DGFT) banning export of shark fin is counterproductive and will affect the livelihood

of the economically backward fishing communities living along the East and West coastlines of the country. The Association in a statement issued said

will help it tap the necessary work force for the purposes. Besides, the existence of an international airport nearby would ensure good logistic support for the venture.

that Indian fishermen do not engage in focused fishing of shark. Shark is a by-catch caught along with tuna, sword fish, king fish and other big fishes. “Shark meat is an essential low cost protein supplement for the communities living along the coastline and in the immediate interiors. Shark fin is sold as a by-product, and is part of the shark meat sold at low prices to the coastal population. Shark liver is used to make shark liver oil, which is of high demand in the pharmaceutical industry and the cosmetics industry.

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“Even the cartilage and intestine of shark are of high demand both in the local market and the export market. Therefore, for the fishing communities, the income they get from the shark catch is a crucial component that makes fishing viable,” said Seafood Exporters Association of Indianational president Abraham J Tharakan.

The 100-acre facility will come up under the guidance of Union ministry of food processing industries. The Centre is likely to provide a financial assistance of Rs 50 crore for the project. Deras is considered an ideal location for the park because of its proximity to Bhubaneswar, which

Deras is already in focus following the establishment of a centre for excellence by the horticulture directorate of the Odisha government over 25 acres with assistance from Rastriya Krishi Vikas Yojana at a cost of Rs 18 crore.

disha Industrial Infrastructure Development Corporation (Idco) will develop a Rs 107-crore mega seafood park in Deras on the city's outskirts. This will host the ventures of between 30 and 35 entrepreneurs at a time, generating employment for over 10,000 people. The project will be ready in two years.

Quick test method developed for Fish toxin

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SEA FOOD NEWS

linders University researchers have announced a revolutionary method to test for histamine in fish.

The method uses a microfluidic chip the size of a credit card that tests for histamine without the need for complex chemical additives. The microfluidic chip is fitted with electrodes that detect histamine levels as the sample passes through a tiny pipe in the plastic device. “We extract different compounds form the fish in liquid form, and these compounds will pass through the device at different rates,” said Associate Professor Claire Lenehan, a lecturer in forensic and analytical chemistry at Flinders. “We can tell what compounds are histamine and how much histamine is contained in the sample, based on the rate at which the compounds pass through the device.” Associate Professor Lenehan says the method is much more efficient and cost effective than current testing methods. “At the moment the extraction of compounds takes longer than the actual analysis because you have to pulverise the fish, add a chemical to turn it into a different chemical and then test it,” she said. “It’s an indirect testing method because you’re not actually detecting histamine at all; you’re detecting a product of histamine. Our method is a much simpler way because all you do is extract the sample and pipette it into the device without having to chemically treat it first.” The device could also be used by consumers who have histamine sensitivity to test foods before they consume them.

Beverages & Food Processing Times

Saswat Patnaik, who heads the project management unit (PMU) of Idco, said: "Plots will be made available in the mega seafood park on lease with power, water and effluent treatment facilities. Facilities such as pre-processing centres, cold storage, packaging units, testing and quality control laboratories, polythene units, laundry unit, dormitory, administrative unit and annex building will be provided." Recognised for its prawn and fish varieties, Odisha's aquatic products, mainly from the brackish water Chilika lake, is expected to attract many buyers. The Chilika Fresh outlet near Siripur Market in the city is already a big hit.


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Five new ways

n our business, we are continually consulting with dairies to recommend the most energyefficient equipment on the farm. Many farms are starting to take a closer look at their operations and taking steps to improve efficiency.

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was always fascinated by the food processing world, why...well even I don’t know the answer but the technology, the development and aesthetic of this industry magnetized me all the time. May be this was the very reason why, seven years back I enthusiastically decided to launch, Beverages & Food Processing Times – a newspaper which today has the premier readership in the food processing, beverages and allied industry. Today Beverages & Food Processing Timesis counted amongst one of the best food industry newspaper in India. This news with a targeted audience of beverages and food processing companies and allied industries countrywide is also available in 3D format. Beverages & Food Processing Times has been covering all the segments in the food industry like foods, food ingredients, confectionery, bakery, dairy, frozen foods, meat, poultry, fruits & vegetables, agro commodities and allied industries which includes food processing and packaging machinery industry. April 2008 was the time when the first issue of the newspaper was published with a view to provide our readers the insight of the Indian and international food processing industry. I as an editor of this magazine had put very high hopes and dreams in it. And after seven years I see my dreams reach panache where I can proudly say that Beverage and food processing times has provided the readers with honest news and views of food industry serving the industry with utmost truth and sincere perspective. In this seven years journey this newspaper has seen many ups and downs in the food industry, it has seen companies developing, organizations crashing, entry of multinationals, food processing industry enhancing with the speed of light, agri industry predicaments and prosperity, beverage industry new entrees…..dairy industry holding the top helm, Indian machinery industry going places, India becoming the number one seafood exporter and meat exporter, ban of beef in Maharashtra to introduction of camel milk in India via Amul. The list is endless the development is infinitive and Beverage and Food Processing Times relays it with all determination and devotion. India is in a stronger position today than what it used to be. The government is making effort to increase FDI to deal with financial instability. We were

amongst the first in the country to report that the Asian Development Bank had forecasted that India's growth rate could surpass that of Chinaowing to the government's pro-investment attitude, which, coupled with an improvement in macroeconomic indicators and forward movement in resolution of structural bottlenecks, has propelled the country back on foreign investors' radar. In fact Beverage and Food processing Times also did deep analysis of the news of Kraft - Heinz merger that createdThe Kraft Heinz Co. This deal was worth more than $40 billion as the merger was between third-largest food and Beverage Company and the fifth-largest food and Beverage Company in the world. The newspaper also reported about the allocation and development of 17 mega food parks across the country to state governments and private firms, envisaging an investment of over Rs 6,000 crore. Adani Ports and Special Economic Zone, Jain Agro Trading Company and Ruchi Acroni Industries are among 10 private players who have been allocated food parks by the Centre. In fact these mega food parks would employ around 80,000 people while 5 lakh farmers would also be benefitted. While Amul reports slowest growth in 8 years, PepsiCo India commissioned its first phase of its largest beverage plant at Sri City, in Chittoor district of Andhra Pradesh, earmarking R1,200 crore for the production facility. South Korea goes for halal products and The World Health Organisation (WHO) has urged nations in the South-East Asia region to make food safety a priority, as close to 700, 000 children die of diarrhea in the region every year. We have covered all stories whether big or small. The newspaper has many stories to tell and many facts to relate. The content of Beverage and Food Processing Times has given its reader all the necessary information on first hand and right time. So it is not surprising to see that the readership of this newspaper has increased with time and the feedback we get is always positive and encouraging. Thanks to all who have been the part of this newspaper, I thank all my staff and employees, whose genuine contribution in the success of this paper cannot be doubted. Above all I thank all my readers to be a part of this seven years old journey and we have many more years to go. Rest will be next! Adieu!

DAIRY & BAKERY NEWS

To some of the most progressive dairies, however, these standard recommendations –such as adding a plate cooler, variable-speed drives for the milk pump and milking vacuum pump, compressor heat recovery and efficient lighting and fans – have been implemented years ago, and they are looking to stay on top of the most promising new technologies to save energy on the dairy farm. The market for energy-efficient products is constantly changing. What was cutting edge only a few years ago can become mainstream fairly quickly once it catches on, and with this change comes better quality and lower prices. Remember when fluorescent light bulbs and front-loading washing machines were only for the “greenest” among us, so much so that they had to be ordered from a specialty retailer? Walk into your local home improvement store

today and you’ll probably have to look hard to find the familiar washers and bulbs you grew up with. If your dairy is confident that you’ve already taken care of the basic energy-efficiency upgrades, there are several technologies you will be hearing more about in the coming years. Below are just a few of the energy-efficiency technologies we’ve been looking at recently. While this list is by no means exhaustive, it should get you thinking about where you might make your next investment in energy efficiency. 1. Ozone laundry Ozone washers work by using ozone gas to clean and disinfect rather than using heat and chemical detergents. Research has shown ozone laundry can be more effective than traditional laundering methods in eliminating bacteria and viruses, which is good news for dairies using cloth for cleaning cow udders. Just think of all the hot water you use every day to wash multiple loads of cleaning cloths. How much could you save by using cold water and ozone instead? Ozone laundry systems also use less water – a boon to areas stricken by droughts – and less chemical detergents. Ozone laundry systems are easily retrofitted to an existing commercial washer. There are many companies that sell ozone laundry systems for commercial machines. If you are considering ozone laundry, make sure to use a recirculation or diffusion system to guarantee continuous circulation of ozone throughout the wash cycle. You must also make sure your system holds a minimum concentration of one part per million dissolved ozone throughout the wash cycle.

Beverages & Food Processing Times

2. Light-emitting diode (LED) lighting One of the most widespread developments in lighting technology in recent years has been the increasing availability and quality of lightemitting diode (LED) lighting. These fixtures typically consume 50 to 75 percent less energy than comparable standard lighting fixtures such as incandescent, mercury vapor, high-pressure sodium and halogen. LED fixtures are available for all standard wattages of exterior lighting fixtures. Benefits include lower power consumption to produce the same amount of light, longer fixture life (typically at least twice the useful life of a standard fixture), lower maintenance costs and no mercury contained in the lamp. To further reduce your initial investment, exterior LED fixtures can be purchased as a retrofit kit to fit into an existing housing and assembly for a traditional light. Currently, we take a conservative approach in generally recommending LED lighting for exterior lighting only. While LEDs have become widespread for interior lighting in other sectors of agriculture – particularly poultry houses – we are still awaiting conclusive

research about the effects of LED lighting on milk production. Until more is known about the effects of LED lighting within the barn, we recommend progressive dairies begin with exterior lighting retrofits. 3. Efficient cow cooling Cow cooling is a significant cost on the farm – certainly for farms in consistently warm climates but also for any dairy experiencing hot summer weather. There are several technologies currently in development that use different approaches to keeping cows cool. Technologies to look out for in the future include various forms of conductive or evaporative cooling, as well as variable-speed drives for ventilation fans. For those dairies located in areas of persistent drought, pay particular attention to the development of technologies that reduce water used for misting, as these water-saving techniques will be able to help you make the most of available water for the farm. 4. Geothermal heat pumps Geothermal heat pumps use the relatively constant temperature of the earth and groundwater to offset heating and cooling loads. This technology is well established, but so far, it has had limited experience in the dairy sector. Many dairies already use a form of geothermal technology in their operation of well-water plate coolers, and opportunity exists to use geothermal heat pumps to offset the substantial dairy hot water loads. Currently, more research is needed to determine which of the four basic types of geothermal heat pump are best for dairies, as well as the cost and


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Vol. 7, Issue 08-April-2015

7th Anniversary

DAIRY & BAKERY NEWS

- to make your dairy more energy-efficient 5. Low-temperature detergent Low-temperature detergent was developed to reduce hot water temperature for wash operations. The detergent allows a temperature of 120ºF to be used in place of the conventional hot water temperature of 160 to 180ºF.

energy efficiency of installing a system. Some initial analyses are promising – with one sample scenario showing up to a 54 percent reduction in heating and 71 percent reduction in cooling costs.

The reduction in wash temperature results in significant water-heating energy savings. It is important producers check with their milk cooperative before switching to low-temperature detergent, as regulations for water temperature can vary.

6. Getting involved in innovative technology development Dairy farmers themselves can be one of the best resources to helping advance the commercialization of new and promising energyefficiency technologies for dairies. Many utility and government incentive programs require comprehensive studies on the energy savings from a technology before they will consider providing farmers with a financial incentive for installing it. If your dairy is excited to be one of the first to try a promising new technology, see if an energyefficiency company might be able to secure

funding to provide a test of the energy savings using your farm as a demonstration. This can dramatically reduce the cost to you while also doing your part to help advance the overall dairy industry. Whatever you choose to do, even if you’re not yet ready to take the plunge into some of the more innovative energy-efficiency approaches, know that new ideas are always being developed to help your dairy cut your energy costs and improve overall production. Courtesy: progressivedairy.com

Baking by infrared radiation Three modes of heat transfer are used in baking biscuits: radiation, conduction and convection. The most important is infrared radiation, which has the following advantages: and the energy required from the burner is only

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enetrative heat transfer: Infrared radiation penetrates biscuit dough by approximately 4mm, (depending on wavelength and moisture content). It is the only heat transfer mode to truly bake the product from the

Radiation All objects above a temperature of absolute zero radiate energy to their surroundings. This energy or radiation is emitted as electromagnetic waves which travel at the speed of light. The waves may travel through a vacuum or other medium. When they impact an object, they are partially absorbed and partially reflected. Good emitters are also good absorbers of thermal radiation.

advantage of baking by infrared radiation

Infra-red radiation is in the wavelength band of 0.7-300 microns (above visible light). Higher temperatures produce shorter wave lengths. Typical wavelengths in a radiant oven are around 4.6 – 6.4 microns, which provides good heat penetration of the dough pieces.

Biscuit structure: because radiation penetrates

Infrared radiation for baking is emitted principally

Iain Davidson

centre. This is the key

Convection Convection baking uses hot air jets which

impinge directly on the top of the dough pieces and the underside of the oven band. This system effectively dries and colours the surface of the dough pieces. However it produces a hard, dry skin on the dough pieces and will prevent good expansion and “lift” of the product if used at the start of the baking process. Also it is a cause of a moisture gradient between the surface (very dry) and the centre of the biscuit (more moist). This may result in “checking”, (cracking of biscuits the dough pieces, it is essential to achieving good structure with optimum volume and texture and is always the main mode of heat transfer in the first part of the baking process Even moisture content: radiant baking ensures a low moisture gradient from centre to the outer surface of the biscuit. It is the best heat transfer mode to avoid “checking” (cracks appearing in the biscuit after baking, due to the moisture gradient) Efficiency: heating of the surrounding air in the baking chamber is not necessary, which lowers energy consumption Colouring: radiation enables highlighted colour contrasts for crackers and rotary moulded products, whereas convection gives an overall,

by the DGF burner flames and by the radiant tubes in an Indirect Radiant oven. Since the radiant energy is proportional to the temperature to the power of 4, a small increase in temperature will give a large increase in radiation. This contributes to the fast response of DGF ovens and high efficiency. Conduction Conduction transfers heat from the oven band directly to the base of the dough pieces. The heat transfer is dependent on the temperature and heat mass of the oven band and the surface area of the band in contact with the dough piece. With steel bands and heavy mesh bands this approximates to full contact and is very effective.

Baking by infrared radiation: Direct Gas Fired Ovens DGF ovens bake with infrared radiation. High rate burners enable rapid baking of crackers with excellent “lift”, open and flaky texture. For cracker baking pre-heat burners also increase conduction to the dough pieces in the first oven zone. Baking by infrared: Indirect Radiant oven Indirect ovens provide fuel security as gas or oil can be used. The burners fire into a heat exchanger and the hot air is circulated through radiant tubes above and below the baking band.

bland, even colour Versatile: infrared baking is suitable for all types of biscuit

after baking), unless the moisture gradient is reduced after baking.

Ovens with band pre-heat can quickly transfer heat into the base of the dough pieces and achieve rapid development of the biscuit structure and texture; this is particularly valuable for cracker baking.

Baking is by infrared radiation from the hot radiant tubes above and below the baking band. The heating system is essentially a closed system

Beverages & Food Processing Times

sufficient to maintain the baking temperature. The burner draws in air for combustion and the excess is exhausted by a natural flue. This hot air / burnt gas in the flue can be used in a heat recovery system and this ensures a high efficiency. Oven efficiency Heat Recovery System All gas burners draw in a large amount of air for combustion. 1.0 m3 of gas requires 3.0 m3 of oxygen (approximately 15m3 of air) for complete combustion. This air is exhausted through the extraction system of a DGF oven and through the natural draught burner flue of an Indirect oven. The hot air and burnt gas in the burner flues of an Indirect Radiant oven is at high temperature, typically over 200oC and this hot air can be recovered and used for baking in a Heat Recovery System. The hot air can be diverted from the flues to a collection pipe running along the top of the oven. The hot air is drawn down the length of the oven by a fan which blows the hot air into a final radiant zone. This zone does not require a burner and is heated by radiant ducts above and below the band. Oven efficiency with Heat Recovery System Independent tests were carried out on 3 ovens in the same factory producing identical rotary moulded biscuits with the same baking time. The tests measured the oven efficiency by calculating the energy usage (gas) in kWh (kilowatt hours) to produce one kilo of baked biscuit. The Baker Pacific Indirect Radiant oven was 18% more efficient than the DGF/cyclotherm oven and 6% more efficient than the DGF/convection oven. The savings in gas consumption per 8 hour shift (23 tonnes of biscuits) are approximately 212 m3 of gas compared to the DGF/cyclotherm and 62 m3 compared to the DGF/convection oven. - See more at: http://biscuitpeople.com/baking-


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Vol. 7, Issue 11-April-2015

7th Anniversary

The NEW cooking oil tester testo 270- Because every drop is valuable

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mportance of the quality of cooking oil in food industry Use of cooking oil which is too old for deepfrying produces inferior quality of food. It may also contain substances which present a risk to health. On the contrary, too early replacement of cooking oil causes wastage. Equipping you to maintain the quality of cooking oil With the launch of new generation of the proven

cooking oil tester testo 270 you can now inspect the quality of cooking oil for producing healthy food even faster. The cooking oil tester testo 270 measures the Total Polar Material (TPM) content in the cooking oil, which is a sure indicator of its quality with best potential of cooking oil between 14 and 20 % TPM. Regular measurement with the testo 270 prevents the use of oil which is too

old along with preventing the wastage of cooking oil due to too early replacement thus ensuring the quality of deep-fried foods, and reducing expenditure for cooking oil by up to 20 % and therefore saving cost! Safety in daily use The new cooking oil tester has more robust connections between the housing, the probe shaft and the sensor along with considerably improved probe shaft strength over the previous model. In addition to this, the measuring instrument also fulfils the protection class IP65 even without an additional protective case which makes cleaning it under running water possible – ideal for use in quick-service restaurants. The ergonomic design of the new testo 270 offers an added advantage to the user by avoiding direct exposure to the heat from the deep-fryer while taking the measurement, allowing more safety. Even more intuitive thanks to traffic light system The 86% larger display of the new testo 270 considerably simplifies the reading of temperature and TPM values along with the unmistakeable alarm provided by multi-colour backlighting which makes it even easier to evaluate the quality of the cooking oil; Green means that the TPM content is below the set limit value, orange is close to it, and when the display lights up red, the limit value has been exceeded. Write back to us to know more about NEW testo 270 cooking oil tester: info@testoindia.com Log on to our site www.testo.in and book your free demo now!

DAIRY NEWS

Dairy sector expected to grow by 15.6% in FY16: Report

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hile domestic milk prices have remained firm during FY15, the demand for milk and milk products have remained high. Analysts expect, India's dairy sector to clock a 15.6 per cent growth rate during FY16. Rating and research firm India Ratings & Research said that demand for dairy products have remained high owing to changing dietary habits and rising buying power. India Ratings expects GDP to grow at 6.5 per cent and agriculture at 2 per cent in FY16.

The report goes on to explain further that seasonal variation in the production of milk has an impact on industry's margins. As dairy cooperatives, unlike their private counterparts, continue to procure milk from farmers at the regulated prices even during the flush season, their margins are affected more than private players. In fact, cooperatives also procure the excess milk available in the market at regulated prices. It adds, "The sector will reap benefits from the federal government's increased focus on dairy development, enhanced availability of quality fodder, and promotion of bovine breeding, among other aspects of raising milch productivity. The government is also working on ensuring better transportation and storage options for milk and milk products." Despite being the world's largest milk producer, India is not a significant player in the global dairy market. India's dairy exports have remained sluggish lately due to a drop in international dairy prices, sluggish global demand, rising cost of domestic milk production and the abolition of skimmed milk powder export incentives by the government in

"Domestic prices have remained firm in FY15 despite the collapse of global milk and dairy product prices in 2014. The demand for milk and milk-based products remained high due to changing dietary habits and rising buying power. The dairy sector grew 12.6 per cent year-on-year (yoy) in FY13 and India Ratings expects it to grow at 15.6 per cent in FY16," the report adds.

Beverages & Food Processing Times

July 2014. The research firm feels that "Although FY16 is likely to open up new export markets for India in view of Russia not planning to give up on its import embargo on dairy products from Europe, the share of dairy exports in India's total exports will remain low."


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Vol. 7, Issue 11-April-2015

7th Anniversary

Green Prosperity – Sustainable Cocoa Production Program Launching farming, improved nutrition practices, and application of prudent financial practices. Moreover, the program also works with national and local Governments, the Cocoa Sustainability Partnership (CSP), and regional cocoa forums to ensure strategic alignment and promoting knowledge management in the sector.

The Food Corporation of India sees a fall of 10% in Wheat procurement

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he Food Corporation of India sees a fall of 10% in wheat procurement, owing to unseasonal rains in March. This year, the FCI and other government agencies are set to procure 30 million tonne for various government

owards Development in Indonesian Cocoa Sector - Swisscontact Consortium and Millennium Challenge Account – Indonesia (MCA-Indonesia) announced a partnership called Green Prosperity – Sustainable Cocoa Production Program (GP-SCPP) with the overall goal to reduce poverty and greenhouse gas emissions in the Indonesian cocoa sector.

schemes from April 1.

Signed on 31 March 2015 in Mamuju, West Sulawesi, the partnership combines equal investment from the consortium and MCA-I and will bring USD 15 million to the cocoa sector in Indonesia.

Aligned with government programs, GP-SCPP is implemented in the heart of cocoa production in Indonesia and spreads across 14 districts in South Sulawesi, Southeast Sulawesi, West Sulawesi, and East Nusa Tenggara Provinces.

With the Haryana government set to procure grain on its own, the corporation’s share in wheat procurement could fall further.From 18.86% share in 2009-10 wheat procurement seasons, the FCI’s share has come down to 12.61% in 2014-15.

The consortium, led by Swisscontact, includes Veco Indonesia, Bank Rakyat Indonesia, PT Bank Pembangunan Daerah NTT, Rabobank, World Cocoa Foundation (WCF), seven private sector companies’ member of WCF namely Barry Callebaut, BT Cocoa, Cargill, Guittard, Mars, Mondelēz International and Nestlé. GP-SCPP is implemented from April 1, 2015 to March 30, 2018.

The program promotes inclusive business models embracing all stakeholders along the cocoa value chain. The ultimate purpose is to establish a selfsustaining model where participating farmers will increase their cocoa revenues and companies that integrate services into their business model.

“Wheat procurement will fall by 10% this season due to unseasonal rains. The Madhya Pradesh government has not been able to start wheat procurement due to rains and we expect delay and loss in production across other states too,” said an official from the FCI.

“This agreement will enable farmers to increase their productivity, and thus their income, and improve household livelihoods, a common goal for both the cocoa industry and the Green Prosperity Project” said Swisscontact Country Director Indonesia and consortium leader, Manfred Borer, during the launch of the program (31/3/2015) at Nestlé’s Demo farm in Mamuju. “The program also strengthens commercial relationships between service providers, input suppliers, cocoa smallholder farmers, and cocoa supply chain.” GP-SCPP will strengthen skills and knowledge of 2,000 farmer groups – consisting of 58,000 cocoa farmers benefitting also women and vulnerable groups – in environmentally friendly cocoa

“This grant marks the first of many Green Prosperity Project agreements that will improve people’s well-being in Indonesia,” said Chairman of Board of Trustees of MCA-Indonesia, Lukita Dinarsyah Tuwo on March 31, 2015. “This partnership will not only enable farmers to increase their productivity and their incomes, but brings the value of cooperation which is crucial for sustainability and future economic growth.”

He added in Gujarat, where only 50 tonne of wheat was procured, reports of grains damage due to discolourisation emerged. The 2015-16 wheat marketing year usually begins from Match 18 in Madhya Pradesh and from April 1 across Punjab, Haryana and other states. The procurement exercise generally gets over by June. According to the official, wheat crop has been flattened and discolored at some places due to unseasonal rains since February 28 to March 16 across north, northwest and central India. As per the preliminary estimates of the agriculture ministry, wheat crop on 12.1 mHa has seen the maximum damage.

“The signing of this agreement not only benefits the farmers who grow cocoa and the companies that purchase it, but it stands as a symbol of the strong relationship between the United States and Indonesia,” said Dana J. Hyde, CEO of Millennium Challenge Corporation (MCC) who witnessed the signing of the agreement. “By supporting economic growth and development, we are working together to ensure a better future for Indonesians and Americans alike.”

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AGRO NEWS

Wheat procurement in Punjab and Haryana will fall by over 1 million tonne compared to the initial target of 12 and 7 million tonne,” said the official. Wheat crop damage area in Punjab has been 0.3 mHa and in Haryana, 1.75 mHa. However, in Uttar Pradesh – where wheat area under 7.5 mHa witnessed the maximum damage – procurement could increase to 3 mHa compared to 0.6 mHa. The entire procurement in the state will be carried by the state government agencies, said FCI officials. Officials in food ministry and FCI said it was unlikely for private players and even states to procure grains in eastern states as recommended by the Shanta Kumar committee on restructuring the FCI.

Farm-level Solar Power generation scheme” for farmers in Punjab

The Green Prosperity Project is funded by MCC, a US donor agency. MCC’s Indonesia compact represents a major pillar of the United StatesIndonesia Comprehensive Partnership, and its goal is to reduce poverty through economic growth. MCA-Indonesia is the entity entrusted to implement the MCC’s five-year (2013-2018) USD$600 million compact.

APEDA cautions exporters on quality of Grapes

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raders have been

asked to exercise caution while exporting grapes this year to avoid any possible rejection as it expressed concern over the quality of the fruit due to recent unseasonal hailstorms in Maharashtra, a major producer. “We are to given to understand that unseasonal hailstorm have hit the grape growing areas in Maharashtra, which is likely to affect the quality of fruits. Hence it is advised that extreme caution

may be exercised while packing consignments for exports,” saisaid agri-export promotion body Agricultural and Processed Food Products Export Development Authority (APEDA) in a circular. The Directorate of Agricultural Marketing and the National plant protection Organization (NPPO) have also been asked to closely examine the consignments before allowing for exports, it said. The grape orchards have been hit badly due to the recent unseasonal rains and hailstorm in Maharashtra, which is a major producer and exporter of the fruit in the country. The state produces about 21-22 lakh tonnes of grapes, of which it exports about 18-19 lakh tonnes. Major exporting nations are Netherlands, Russia, the UK, United Arab Emirates, Bangladesh and Saudi Arabia.

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grarian state Punjab’s hard-working farmers could look forward to the end of some of their power-cut woes with the state government planning to launch soon a “New and Renewable Energy Minister Bikram Singh Majithia said farmers will be allowed to set up solar power plants ranging from one MW to 2.5 MW.”The initial target is being fixed at generation of 500 MW power under this scheme. Majithia said the scheme had been specially designed to meet the growing challenges of land scarcity, high cost of land, alarming ground water table situation and depleting soil health. “There was no doubt that agricultural production in state has reached a saturation point and it is imperative for us to explore more and more avenues for enhancing the income of farm sector. The time has come to develop entrepreneurial skills among farmers which will further give them

Beverages & Food Processing Times

confidence for setting up of agro-industries/food processing industries etc,” Majithia said. Punjab, with just 1.54 percent of the country’s geographical area, contributes over 50 percent of food grains (wheat and paddy) to the central kitty. “Once the scheme is launched, any land owning farmer having at least five acres of land or small farmers joining hands to form a group can apply jointly,” he said. The minister further said that farmers would be free to fix their solar panels in such a design that they could use their land for agricultural purposes also. “The farmers can also use power for their domestic or agricultural requirements and they will be paid on monthly basis for the power they contribute to the power sub-station,” he said


20 Vol. 7, Issue 11-April-2015

7th Anniversary

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Beverages & Food Processing Times

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7th Anniversary

Vol. 7, Issue 11-April-2015

UAE to implement stricter Food Safety law

Intertek’s toy testing lab at Mumbai gets successfully accredited by NABL

While the bill has been passed by the FNC, it would need to be approved by president Shaikh Khalifa Bin Zayed Al Nahyan before it is implemented. Incorrect labeling and false descriptions of food would lead to a fine of between AED10,000 and AED100,000.

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he UAE Federal National Council (FNC) has approved a new draft law that will help strengthen the country’s food safety.

The new law has mandated imprisonment of up to three years, and a fine of AED2m for those found endangering food safety, reported Gulf News. Also, no food will be allowed to enter the country without approval of the country’s Ministry of Environment and Water. Anybody dealing in food products that contain pork or alcohol, or any of their by-products need permission of the ministry, without which, the offence would amount to a prison term of not less than a month, and a fine of up to AED500, 000. The FNC made the decision in the 15th legislative chapter, under the chairmanship of its speaker, Mohammed Ahmed Al Murr.

A recent report made by an adhoc FNC committee stated that out of the 200,000 goods and commodities available in the markets of the UAE, only 6,500 goods, which included 300 food products, adhered to the standards of the federal watchdog. Gulf News also reported that members of the house stressed the need for implementing more stringent measures to compete in a global trading system, regarding the quality of products, safety, health and environmental impacts, as the country imports close to 80% of its food products. Attempts to endanger food would also be given the same punishment as an actual offence. People involved in trading rotten food would be imprisoned for no less than a month, and fined between AED20,000 and AED200,000. All other food safety violations would lead to a minimum fine of AED10,000, with punishments being doubled in case of a repeat in offence.

Blue Bell recalls products after three patients die of Food poisoning

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ndia, 14th March,2015 – Intertek, a leading quality solutions provider to industries worldwide announced that it has received Accreditation as per ISO 17025:2005 through National Accreditation Board for Testing and Calibration Laboratories (NABL) for the toy testing lab in Mumbai. NABL is an autonomous body under the guidance of Department of Science & Technology, Government of India. On receiving the NABL approval Mr. Manish

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exas-based Blue Bell icecream has recalled its products for the first time in 108 years after three deaths were reported from a foodborne illness linked to some of its icecream products.

These samples were collected by the South Carolina Department of Health and Environmental Control during a routine product sampling. The products were said to have been manufactured at the company’s Brenham facility.

The company has also shut down one of its production facilities as the government warned people to avoid consumption of its icecream bars and cookies.

Following this, Blue Bell Creameries reported that it had removed the affected icecream products from the market.

The US Food and Drug Administration (FDA) released a statement saying five people admitted at the same hospital in Wichita, Kansas were infected with one of four rare strains of Listeria monocytogenes.

The recalled products are: Blue Bell chocolate chip country cookies, Great Divide bars, sour pop green apple bars, cotton candy bars, Scoops, vanilla stick slices, almond bars and no-sugar-added Moo bars.

For Updated News Everyday logon to www.agrofoodprocessing.com

Kumar, Regional Director, Softlines, South Asiacommented, “The Indian toy business is critical market for both domestic and international companies. The momentum is optimistic and is likely to continue in coming years. We are excited to announce the NABL recognition to Intertek’s toy lab in Mumbai.NABL accreditation is the ultimate benchmark that would provide our customers the much needed assurance for reliable testing services conducted at the laboratory. We are now capable of doing special auditing for toys and contribute more towards safety standards of the nation. Additionally, NABL accreditation will provide a competitive advantage to the toy manufacturers and will potentially increase their business due to increased customer confidence and satisfaction.” The lab offers a variety of services that include Safety, Mechanical, Flammability and Chemical tests to ASTMF 963 and EN 71 (EU Toys Directive), as well as testing to the requirements of CPSIA (Consumer Product Safety Improvement Act). This accreditation of newly developed toy lab in Mumbai is for IS, ISO, Japan, EN and CPSC test methods which will further expand toy testing capabilities of company.

Food safety and nutrition are linked: WHO

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inking food safety and nutrition, the World Health Organisation said food and water borne diseases kill an estimated two million people across the world annually.

there were several potential areas of food contamination and safe and healthy food should be the prime focus. “Food safety is big issues so this year we have come up with a theme on food safety on the occasion of World Health Day on April 7, 2015,” she said, during a technical session on the theme for the World Health Day. The WHO experts enumerated five key points for safer food.

“Four out of the five patients at the hospital had consumed milkshakes, which contained a single serving of a Blue Bell icecream product called Scoops.” FDA further said that several strains of Listeria monocytogenes were found in samples of Blue Bell Creameries’ single serving Chocolate Chip Country Cookie Sandwich and the Great Divide Bar icecream products.

FOOD SAFETY NEWS

These include cleanliness, keeping the raw and cooked food separate from other foods, cooking thoroughly especially meat, poultry, eggs and seafood at 70 degree Celsius, keeping food at safe temperatures, using safe water and raw materials. “Globally, every year, millions of people die of food contamination. Food borne illness is a serious cause of concern. Access to sufficient amounts of safe and nutritious food is key to sustaining life and promoting good health. Food safety, nutrition and food security are inextricably linked,” Asheena Khalakdia, the team leader for communicable diseases at WHO country office for India, said.

“Food safety is a shared responsibility. It is important to work all along the food production chain – from farmers and manufacturers to vendors and consumers. We want these five keys for safer food to be made accessible to every consumer. All the stake holders should come forward on a joint platform to share this responsibility,” senior communication officer at WHO country office for India, Rajeev Varma, said.

She said that from production to consumption,

Delhi government plans to merge Food Safety, Drug control departments

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oting that adulterated food is a “serious threat” to people’s life, the Delhi government has made a plan to merge its two departments – Food Safety and Drug Controlto eradicate adulteration in food and drugs from the city. The government feels that by merging these two departments, the strength of officials and staff will increase and they would be able to launch “strict checks” against adulteration across the national capital. “In Delhi, adulterants are used indiscriminately. Most people don’t complain about adulteration as they think it is not such a big issue…but we don’t know that the child who drank milk adulterated

Beverages & Food Processing Times

by detergents subsequently died,” Health Minister Satyendra Jain said. “We have to get down to basics. We will completely stop adulteration in Delhi,” he said. The minister said, “At present, food and drug adulteration are handled by different departments…we are going to merge them and this adulteration will be stopped completely.” A senior official said the government will spare no effort to identify the perpetrators and bring them to book. “City government would adopt a stern stance against those found guilty of such acts as consumers are entitled to get best quality products when they make a purchase,” the official said.


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Vol. 7, Issue 11-April-2015

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DuPont Nutrition & Health Launches New Positioning

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lobal Branding Platform Reinforces Full Set of Ingredients Including Knowledge, Expertise and Science

COPENHAGEN, DENMARK, 31 March, 2015 – DuPont Nutrition & Health has launched a new platform to reinforce the strength of the company’s offering to customers and the food industry. Titled

“It’s What’s Inside” the positioning cites all of the key attributes that make DuPont a global leader in specialty food ingredients and food protection, with a foundation in the strength of its people – nutrition and food scientists, consumer and market insight experts, global marketers and sustainability leaders, in addition to its broad product portfolio. “We are more than 7,000 people in over 40 countries all working to help our customers make what we eat and drink safer, more nutritious and more affordable,” said Ruth Farrell, global business communications leader, DuPont Nutrition & Health. “This new positioning allows us to promote our full offering – it is not just the physical ingredients that make the difference;

it is a combination of all the intangible ones working together. Every day, there are 150,000 more people in the world. Our objective is to help our customers provide the foods, beverages and supplements that consumers are seeking to give them the nutrition, taste and energy they need.” The primary goal of the new positioning is to increase awareness of DuPont Nutrition & Health as a leader in the food ingredients industry so key stakeholders readily understand its role in the food space and how its collective capabilities deliver unmatched value for customers. The positioning will be used to promote DuPont Nutrition & Health across all communications platforms, including advertising, public relations, collateral materials, at trade shows, and in traditional and online media. DuPont Nutrition & Health combines in-depth knowledge of food and nutrition with current research and expert science to deliver unmatched value to the food, beverage and dietary supplement industries. We are innovative solvers, drawing on deep consumer insights and a broad product portfolio to help our customers turn challenges into high-value business opportunities. DuPont (NYSE: DD) has been bringing worldclass science and engineering to the global marketplace in the form of innovative products, materials, and services since 1802. The company believes that by collaborating with customers, governments, NGOs and thought leaders, we can help find solutions to such global challenges as providing enough healthy food for people everywhere, decreasing dependence on fossil fuels, and protecting life and the environment. For additional information about DuPont and its commitment to inclusive innovation, please visit www.dupont.com

FOOD INGREDIENTS NEWS

BENEO-Institute: “Improving your healthy lifestyle by a smart choice of carbohydrate”

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nke Sentko, Vice

President Regulatory Affairs & Nutrition Communication, BENEOInstitute speaking at the 10th Nutra India Summit in Mumbai, India. Ms Sentko shared with the audience her knowledge about the importance of the quality of carbohydrates during the ‘The Science Behind the 3N’s (Nutraceuticals, Nutritionals & Naturals) to Better Health’ session. The quality of carbohydrates plays a key role in the metabolism hence, enhancing health for an improved lifestyle. BENEO-Institute’s Vice President of Regulatory Affairs & Nutrition Communication, Anke Sentko stressed that although carbohydrates should be the major source of energy for the body, the quality of the carbohydrate in our food selection matters significantly. She said this during her speech at the 10th Nutra India Summit, the flagship event for the nutraceuticals, functional foods, dietary supplements, ingredients and health foods industry in India. Ms Sentko explained that ‘quality’ refers to how quickly or slowly, partially or completely a type of carbohydrate is digested and absorbed by our body, as this directly influences e.g. the blood sugar and insulin levels. She further elaborated that carbohydrate rich but low glycaemic food

Electronics Devices Worldwide Pvt. Ltd.

Beverages & Food Processing Times

options are preferable as these carbohydrates are digested slowly. “The high prevalence of pre-diabetes and diabetes in India’s urban regions shows that the quality of different carbohydrates needs to be moved higher up the agenda,” said Ms Sentko. “People are beginning to understand that food and drinks with low glycaemic blood glucose responses can promote wellbeing and support healthier ageing. Food and beverage producers are well aware of the need to offer products that promote nutritional benefits to meet this growing awareness, which is why BENEO supports the food industry with sound nutrition science, advice in formulations as well as market and consumer insights,” she continued. Additionally, Ms Sentko also presented the characteristics of the unique carbohydrate Palatinose™. It is, a fully available but slowly released sugar that supplies the body with fully available energy in a more balanced way and over a longer period of time than other sugars. Being low glycaemic, Palatinose™ supports a low and steady blood glucose response. Consequently, it offers a more balanced supply of glucose. This leads to a higher contribution of fat oxidation in energy metabolism, hence potentially providing longer-term benefits for glucose control, body composition and weight management. Naturally derived from beet sugar, Palatinose™ gives a mild and natural sweet taste and is also the first tooth-friendly sugar available. It can be used in various applications such as beverages, confectionery, cereals, sports nutrition, and baby food.


7th Anniversary FOOD PROCESSING NEWS 23 Vol. 7, Issue 11-April-2015 Ola Cafe brings meals to your Mega Food Parks in every state across India doorsteps in 20 minutes

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esidents of Mumbai, Delhi, Hyderabad and Bangalore will be pleased to know that Ola Cabs has started a new service to bring food to your doorsteps. This feature can be seen on the new 'Cafe' option from the Ola Cabs application, with the ability to order lunch, snacks and dinner. The service will be available from 12PM to 11PM. Once your food is ordered, Ola Cabs promises to offer it to you within 20 minutes, which is quite

The company breaks down the menu into three time segments - 12PM to 3PM will be reserved for lunch items, 3PM to 7PM will be snacks and 7PM to 11PM will have dinner items.

‘there is a larger scope and a greater potential for increasing the same’. Meanwhile, SadhviNiranjanJyoti, Minister of State for Food Processing Industries, also informed that a total 42 MFPs have already been sanctioned by the government for setting-up across the country, out of which, 21 MFPs are at various stages of implementation, while four MFPs are progressing towards meeting the conditions for final approval.

After placing the order, the app will notify you of the name and contact number of the delivery person and also inform you of the total bill amount. In addition to paying through debit/credit card or netbanking, you can also pay through Ola Money which is the app's dedicated wallet service.

Speaking at the inaugural event of 30th AAHAR International Food and Hospitality Fair organized by India Trade Promotion Organisation (ITPO), Badal referred to the MFP initiative as a flagship program of her Ministry and said the MFPs shall become a hubs for food processing activities across all the States.

To increase its workflow, Ola recently acquired TaxiForSure for an estimated sum of $200 million. This should help greatly in bringing this new plan to fruition, although it will still be a challenge. For those who feel missed out, Ola mentions that the service will also make its way other cities over the coming months.

Stating that there was a huge potential for value addition for farmers through food processing, the Minister said that the MFPs will help in better management of food wastages and will also facilitate better prices for consumers.

On an average, each project will have around 3035 processing units at a total investment of Rs 250 crore, which was expected to result in an annual turnover of about Rs 450-500 crore and creation of direct & indirect employment to the extent of about 30,000 persons, SadhviNiranjanJyoti added. Earlier, MarekSawicki, Agriculture Minister of Poland, also said that his Government was in the process of launching promotional campaigns in India, aimed at supplying food processed in Poland to the Indian consumers.

Stressed consumers look for

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‘Feel-Good’ Products

n increasing number of UK consumers are suffering from stress, sleep deprivation and a lack of energy. In 2015, Britons are vowing to improve their work/ life balance, reduce feelings of stress and spend more time with family and friends. According to Canadean, food and drink manufacturers that help them achieve this goal will do well this year. Even though the UK economy is on the path to

recovery, many consumers still worry about issues such as rising living costs and their ability to deal with everyday bills and expenses. Canadean research finds that 28% of UK consumers are not confident about the state of the economy, while 24% indicate that they will confine grocery spending to essential needs this year as they do not have the money to spend on treats. The survey also finds that 46% of consumers have suffered from disrupted sleeping patterns in the last six months. More than half of UK consumers want to reduce

stress As a result, consumers are looking to step back from the pressures of everyday life and are reevaluating what is important to them. According to the survey, 51% of UK consumers are going to make active attempts to reduce their stress levels this year, while 41% say they are going to spend more time socialising with their family and friends. Michael Hughes, lead analyst at Canadean, says: “The turbulent nature of modern life is taking its toll on consumers and this is why many of them are trying to make active changes to their lifestyles. Achieving feelings of happiness will be very important to consumers and this presents a good opportunity for grocery manufacturers that offer products that help facilitate this feeling.” Consumers want products that help them relax According to Canadean, consumers will increasingly seek out products that lead to feelings of relaxation and escapism. They will also seek out products that are positioned around sharing with friends and family, as consumers feel favourable towards products that encourage them to visit and spend time with others. Hughes adds: “Consumers have a myriad of different needs when purchasing their groceries, so the desire for feelings of happiness and escapism will not revolutionise every product category or consumption occasion. However, this area definitely offers valuable pockets of growth and manufacturers should look to develop products that more clearly help people enjoy ‘feel-good’ moments of consumption that in turn help them to take a break from daily stresses.”

Processed foods struggle amid health trend

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s consumers are moving toward healthier foods and snacking, processed food giants are left scrambling to determine new ways to attract consumers back to quick-andeasy and “sit-down meals.” According to NPR, processed foods may still own the majority of the center-store food aisles at grocery stores, but they “are losing ground when it comes to social-media marketing.” To adapt, major food companies, such as Campbell’s, are turning toward healthier and organic products to appeal to millenials and other health-conscious consumers.

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he Union Ministry of Food Processing, Government of India, announced initiatives towards development of food processing activities and better management of food products in India. In this regard, Harsimrat Kaur Badal, the Union Minister of Food Processing, informed about the government’s steps towards establishment of one Mega Food Park (MFP) in every State across the country.

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Processed foods companies have taken a hit as of late for a myriad of reasons. Last week, Kraft Foods Group instituted a recall for some of its macaroni and cheese products due to possible contamination of metal pieces. The cereal industry has taken a hit over the past decade, including a recent plant closure announcement by Kellogg, leaving cereal producers to change their strategies to include or promote healthier ingredients, such as ancient grains and Greek yogurt. Whether these are the best strategies to boost these companies’ bottom lines is up for debate, but swaying consumers back to processed foods seems like a necessity for these companies to stay at the top of their industry.

While noting that India was a leading producer of milk and the second largest producer of fruits and vegetables, the Minister also raised concerns over the current level of fruits and vegetable processing in the country.

Prior to this in February 2015, the Union Agricultural Minister Radha Mohan Singh had also asked the Lebanese delegation led by Lebanon Agriculture Minister AkramChehayeb, to consider setting up of MFPs and Cold chains in India to ensure better supply chain.

Mentioning that the current processing level of fruits and vegetables in India stands very low at 2%, the Union Minister exuded confidence saying

He further called for the exchange of modern processing techniques of fruits and vegetables, new packing techniques of food products between India and Lebanon.

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Under the scheme (2008-09) of mega food parks, the Food Processing Ministry had sanctioned 42 projects throughout the country. Of these, 25 parks have already been allocated.

17 Mega Food Parks to be set up by govt next week

he government is likely to soon announce allocation of 17 mega food parks, entailing a total investment of Rs 2,100 crore, to various firms for development. A mega food park provides various facilities to food processors,

“…We have received proposals for allocations of food parks, we are in the process of evaluating those proposals and I think very soon we would be able to allocate these food parks,” Badal had said earlier this month.

farmers, retailers and exporters, helping achieve faster growth of food processing industries. According to sources, Food Processing Minister Harsimrat Kaur Badal is likely to announce next week the sanctioning of these 17 mega food parks in states including Punjab, Haryana, Andhra Pradesh, Karnataka, Kerala, Telangana, Odisha, Gujarat, Maharashtra, Madhya Pradesh, Tamil Nadu and Bihar. The total investment in these mega food parks is estimated at Rs 2,100 crore, of which the government’s contribution would be to the tune of Rs 850 crore, they added. In these mega food parks, 50,000 people are expected to get employment while 80,000 farmers would also be benefitted.

Beverages & Food Processing Times

The Minister had also said that it would be ensured that at least one Mega Food Park is established in every state. The Food Processing Ministry has received 72 proposals from various firms including Adani Group, ITC and Future Group for 17 food parks. These mega food parks will attract a minimum investment of about Rs 125 crore each. Badal had further said only 2 per cent of total fruits; vegetables and grains produced in the country are processed. The Mega Food Park Scheme, based on cluster approach, is modeled on hub and spoke architecture. It aims at facilitating the establishment of a strong food processing industry backed by an efficient supply chain, which includes collection centres, central processing center (CPC) and cold chain infrastructure. The scheme envisages one time capital grant of 50 per cent of the project cost (excluding land cost) subject to a maximum of Rs 50 crore in general areas and 75 per cent of the project cost (excluding land cost) subject to a ceiling of Rs 50 crore, in difficult and hilly areas including north east region and J&K.


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Vol. 7, Issue 11-April-2015

Mother Dairy to sell lassi via Vending Machines

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n the lines Pepsi and Coke, Mother Dairy has started serving fresh lassi through vending machines before the summer season to make inroads into the soft drinks market. The move, earlier deemed impossible by dairy makers due to the complexities involved in setting up a cold chain, might encourage other companies to follow suit. Subhashis Basu, dairy head with Mother Dairy, said it took the Delhi-based company two years to come up with the solution. Basu, an ex-PepsiCo employee, was inspired by the way Fountain Pepsi revolutionized the soft drink market here.

Even now, Coca-Cola is finding out new ways to penetrate the market with its mobile units, which are basically trucks moving around with soft drink-vending machines. "For the first time in India, we have used the 'bag-in-box model', which allows us to deliver fresh lassi straight from the plant to the vending machines. We have set up 50 machines in colleges and corporate offices such as those of Vodafone's. We will be setting up 250 more before summer," Basu said. A bag-in-box model is a flexible packaging

Flavoured milk, lassi and butter milk are the main product segments under dairy beverages. Total packed dairy beverages amount to 527 million litres and are growing at a CAGR of 18%, according to industry estimates. Of the total packaged beverages, 60% is accounted for by lassi and buttermilk.

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format used in developed markets for transporting highly sensitive beverages such as, smoothies and milkshakes. The bag with the beverage, which resides within a cardboard box, can be fitted into a specialized vending machine. "Our bag has numerous nozzles that allow us to serve different flavours of lassi. The first few vending machines have been imported but the rest will be manufactured here," said Basu.

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"Consumers, especially youngsters, are moving away from sugary drinks to more healthy beverages. Dairy beverages such as buttermilk, flavoured milk and lassi, among others, are gaining traction very rapidly among the youth," said R S Sodhi, MD of Gujarat Cooperative Milk Marketing Federation, the maker of Amul milk and butter.

Beverages & Food Processing Times

DAIRY NEWS

ITC moves to milk Dairy Sector

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rmed with its decade-long experience in livestock development, ITC Ltd is planning to enter the dairy sector next fiscal with a bouquet of value-added products such as ghee. The diversified conglomerate is expecting its 2, 00,000 litres a day milk processing facility at Munger, Bihar, to be operational over the “next few months”. The brand name of the dairy business is yet to be finalized. Indian dairy sector is now dominated by Amul and Nestle. “We are hopeful of launching the dairy products by next year (2015-16),” Chitranjan Dar, Chief Executive, ITC’s Foods Division. The Munger plant would have a capacity to produce “a number of value-added products” like ghee. Pulp milk is unlikely to be the immediate focus of the company, Dar said. There are also plans to set up similar processing facilities in other parts of the country. Expansion of the Munger facility will also be considered. Dar did not elaborate on the price and distribution nuances of the products. However, he maintained that offerings will be at “competitive prices”. From 2003-04, ITC worked with village communities on extensive livestock development programme to create sustainable livelihoods for farmers. Munger was one such place where artificial insemination programmes to improve milk productivity was done. “We realised the potential of the segment some two years back. Accordingly, we began work on the Munger facility,” he said. According to Dar, ITC would leverage its own backend process to facilitate procurement of milk from the farmers.


7th Anniversary AGRO PROCESSING NEWS 25 Vol. 7, Issue 11-April-2015 GDP will be raised by imparting Farm-level Solar Power generation scheme” for farmers in Punjab skills to women in agri

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mparting training to women engaged in agriculture will help increase country's GDP, LalithaKumaramangalam, chairperson of National Commission for Women (NCW) said. She also called for more representation of

Mangalam said while inaugurating a seminar on Accelerating Women Entrepreneurship, organised by FICCI in partnership with Intel India.

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grarian state Punjab’s hard-working farmers could look forward to the end of some of their power-cut woes with the state government planning to launch soon a “New

"Women must take to mentoring other women which should become part of the ecosystem," she stressed, adding there was a need to look at entrepreneurship beyond the traditional sense. Kumaramangalam said that women suffer from poor asset ownership and fare poorly on the awareness levels of their legal rights. Even those who are aware, do not demand their rights vociferously, she pointed out.

professional women in the boards of companies and flexi-time to women by their employers. "There is a need for imparting training to women in planning and administration as also provision of technical skills to women engaged in agriculture. If this was carried out in right earnest, the country GDP would rise by two percentage points,"

She flavored providing flexi-time to women by their employers as it has been observed that those between the ages of 30-45 drop out of employment because of family responsibilities and because of the fact that the age group represents the reproductive years of their life. Also a report titled Accelerating women entrepreneurship in India: roadmap for the national capital region was released at the event.

and Renewable Energy Minister Bikram Singh Majithia said farmers will be allowed to set up solar power plants ranging from one MW to 2.5 MW.”The initial target is being fixed at generation of 500 MW power under this scheme. Majithia said the scheme had been specially designed to meet the growing challenges of land scarcity, high cost of land, alarming ground water table situation and depleting soil health. “There was no doubt that agricultural production

Bihar criticizes Centre for cut of funds under Agri schemes

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Though Bihar stands to gain more funds under vertical division of central taxes among the states as envisaged by the 14th Finance Commission, we have been tripped by the Centre under formula adopted for horizontal division of the Central funds with funds being slashed in agriculture sector, Agriculture Minister Vijay Kumar Chaudhary informed the House while replying to debate on his department’s budgetary allocation to the tune of Rs 2833 crore for 2015-16. Making things more clear, he said that the norms for sharing formula between the Centre and the states have been re-worked under the 14th Finance Commission recommendations due to which Bihar will have to bear 25 per cent cost for implementation of the National Food Security Mission (NFSM) in Bihar under 75:25 formula as against 100 per cent funds being granted by the Centre earlier to the state. Similarly, Bihar will have to bear additional

financial burden for implementation of Mission For Integrated Development of Horticulture (MIDH) under 75:25 sharing formula now as against 85:15 earlier, Chaudhary said, adding that our state will also lose out in terms of Central funds in another agriculture scheme – Rainfed Area Development Programme (RADP) under new sharing formula between the Centre and states. Painting a bright picture of growth in agriculture sector in Bihar Rainfed Area Development Programme (RADP), the Agriculture Minister claimed that the state will cultivate sufficient foodgrains to meet consumption demand at 168 lakh metric tonne a year. Our government has succeeded in doubling foodgrain production from 80.94 lakh metric tonne in 2005-06 to 172 lakh metric tonne in 201112, he said, adding the figure remained the same in 2012-13, but declined marginally in 2013-14 at 150 lakh metric tonne due to severe drought and cyclone Phailin. The Agriculture Minister, at the same time, expressed concern at dependence on a large chunk of population in Bihar on agriculture for livelihood and suggested to the people to shift to other growing sectors for improving their lives.

Punjab, with just 1.54 percent of the country’s geographical area, contributes over 50 percent of food grains (wheat and paddy) to the central kitty. “Once the scheme is launched, any land owning farmer having at least five acres of land or small farmers joining hands to form a group can apply jointly,” he said. The minister further said that farmers would be free to fix their solar panels in such a design that they could use their land for agricultural purposes also. “The farmers can also use power for their domestic or agricultural requirements and they will be paid on monthly basis for the power they contribute to the power sub-station,” he said

Central govt tell states to use e-auction to procure Agri Commodities he central government has written to all state governments to opt, where possible, for e-auctions to procure agricultural commodities. This was done a few days before the Union Budget was presented. This is part of a plan to get going in a national common market for agri

he 14th Finance Commission’s award for devolution of Central taxes among the states today echoed in the state legislative assembly with a senior minister charging the NDA government with slashing funds under various agriculture schemes to Bihar.

in state has reached a saturation point and it is imperative for us to explore more and more avenues for enhancing the income of farm sector. The time has come to develop entrepreneurial skills among farmers which will further give them confidence for setting up of agro-industries/ food processing industries etc,” Majithia said.

products, linking all the wholesale markets run by Agricultural Produce Marketing Committees (APMCs). According to the official Economic Survey for 2014-15, there are 2,477 principal regulated markets based on geography (the APMCs) and 4,843 sub-market yards regulated by the APMCs. The Centre aims to link all these, to create one market. The first step has been to get each state to change its APMC law, to allow private market yards or markets. Some states have denotified fruit and vegetables from their Act. This is not considered enough and the recommendation on e-auction is the next step. Half a dozen states have begun procuring sugar for public distribution by using the e-auction facilities provided by NCDEX E-Markets (NEML), a subsidiary of the National Commodities and Derivatives Exchange (NCDEX).

Beverages & Food Processing Times

The Centre has lauded NCDEX’s mandi modernization programme (MMP), under which all APMCs of Karnataka have already been linked electronically and farmers get one state price for commodities traded on this common platform. The Survey said in Karnataka, 51 of the 155 main market yards and 354 subyards have been integrated into a single licensing system. Rashtriya e-market Services, a joint venture created by the state government and NCDEX Spot Exchange, offers automated auction and post auction facilities (weighting, invoicing, market fee collection, accounting), assaying facilities in the markets, facilitation of warehousebased sale of produce, commodity funding and price dissemination NCDEX is also implementing a Unified Market Platform, whereby all mandis in the state are being unified for single trading. Apart from Karnataka, it has started unifying mandis in Telangana and Andhra Pradesh. Among other states in discussion with NEML are Punjab, Haryana and UP. NCDEX has also launched forward trading in several agricultural commodities, such as castor seed, cumin, maize and sugar. Says Samir Shah, managing director of NCDEX, “Exchange-traded forwards available on the national online platform of NCDEX plug in the missing link in the organised commodity value chain. The exchange has started a membership drive especially for farmer producer organizations, through which farmers can sell their produce directly on the NCDEX forwards segment. There are lakhs of physical traders who buy commodities from APMC markets nationwide. The forwards segment provides them an alternative platform to sell these.”


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7th Anniversary

Getting more out of Baked goods

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aked goods like breads, cakes and pastries, are continuing to be popular with consumers. Baked goods sales worldwide grew from 139 to 141 million tonnes from 2008 to 2013[1]. In Asia Pacific, pastries and cakes sales are particularly successful, achieving 76 percent of volume growth between 2008 and 2013[2]. Nevertheless, there are clear signs that Asia Pacific consumers are making a conscious effort to eat healthier. Consumers, with easy access to information on nutrition and food science in the current Internet age are making better informed decisions than ever before when it comes to food choices. These days, consumers want their baked foods to not just taste good, but also to come packed with nutritional benefits.

a sugar-like taste with about 50 percent of its sweetness. It replaces sugar in a 1:1 ratio, is low glycaemic in nature and low in calorie (2 kcal/g). When used in baked goods, ISOMALT provides the same taste, body, colour, pore size distribution and fluff consistency as if sugar were used. BENEO’s ISOMALT provides food manufacturers with the opportunity to tap into the increasing demand consumers have for ‘health and wellbeing’ products by facilitating claims such as “no added sugar” or “reduced calories”. As consumers look to combine their taste for treats with an increasing focus on healthy living, bakery products with ISOMALT give manufacturers the chance to distinguish themselves from the competition. Also, BENEO’s chicory root fibre oligofructose is well suited for the use in sweet baked goods. Its sensory profile is very similar to that of sucrose. Oligofructose has a mild sweet taste and up to 65

In this article, Christian Philippsen, Managing Director of BENEO Asia Pacific, discusses how food manufacturers can simultaneously cater to consumers’ demands in taste, texture and nutrition, while developing a product for consumers who are more health conscious, through a new breed of functional ingredients. Reducing or replacing sugar According to a recent decision by the World Health Organisation (WHO), the sugar consumption of adults and children should be significantly reduced to less than 10 percent of the daily energy intake. Studies have linked high consumption of sugar over time to diabetes, obesity and many other health problems[3]. Sugar is a common ingredient in baked goods such as cakes, muffins and pastries. In order to offer healthier alternatives, manufacturers are looking for ingredients that help to reduce or replace sugar without compromising on the taste and texture of their baked goods. Baked goods manufacturers can replace sugar entirely or partly with functional ingredients like BENEO’s ISOMALT. The only sugar replacer derived from pure sugar beet, ISOMALT has

percent sweetening power of sucrose. By adding intense sweeteners such as sucralose, aspartame, or acesulfame K, the sugar content of baked goods can be reduced without adverse effects on sweetening power. Moreover, oligofructose masks the aftertaste of many sweeteners, allowing a well-balanced sweetening profile to be obtained. Comparable in form to sucrose, it ensures sweetness as well as bulk and texture. Additionally, oligofructose does not crystallize and has a higher solubility than sucrose. If sucrose is partially replaced by oligofructose in a recipe, the amount of water added to the dough may be adjusted in order to yield the desired dough viscosity and volume. Packing in the fibre While consumers try to increase their fibre consumption, many of them turn to foods such as biscuits, cereals and cereal bars as a source of

fibre-enrichment. Dietary fibres are thus, a perfect fit for baked goods. As soluble dietary fibres, BENEO’s Orafti® Inulin and Oligofructose can be used to enrich the fibre content of baked goods without altering the product’s taste or texture. With just three to six percent inulin in a recipe for example, industrial and artisan bakeries can produce fibre-enriched products and in turn, offer consumers real added value. Besides nutritional benefits, inulin also offers technological advantages for baked goods. Dietary fibre influence on the sensory profile of the end product is crucial: Orafti®HPX is neutral in taste and can be added in larger quantities if desired. This is especially advantageous for the production of baked goods that are very high in fibre. Being prebiotic inulin and oligofructose also help improve the balance of the intestinal flora by stimulating beneficial bifidobacteria growth – an important element of good digestive health. Based on a 13.5 health claim application BENEO has gained a positive EFSA evaluation for its prebiotic fibre inulin in improving the effect on bowel function in January 2015. Additionally, oligofructose and inulin can also be used as calorie-reducing ingredients as they have a scientific caloric value of only 1.5 kcal/g instead of the 4 kcal/g of sucrose. Furthermore, BENEO’s ingredients ISOMALT, inulin and oligofructose can help to reduce the glycaemic response of final products. The European Food Safety Authority (EFSA) gave positive opinions for the blood glucose lowering properties of oligofructose and inulin, as well as for ISOMALT with corresponding health claim approvals in the Annex of the Regulation 432/2012. Breaking baking tradition Baked goods with improved nutritional profiles will see growing importance as consumers increasingly choose healthier foods and authorities likely to push for sugar reduction in final products. Manufacturers are well set to start thinking about alternatives in creating healthier versions of their baked products. BENEO’s naturallyderived functional ingredients allow baked goods manufacturers to be creative and innovative, as they push the boundaries of product concepts and baking processes to meet the high expectations of today’s consumers.

BACKERY & DAIRY NEWS

Mother Dairy looking at Rs 700 crore turnover from horticulture business

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eading milk supplier Mother Dairy is looking at Rs 700 crore turnover from its horticulture business in the coming fiscal on expected jump in sale of pulse. Mother Dairy's Business Head (Horticulture) Pradipta K Sahoo said, ‘’Higher turnover is expected to come from sale of pulses, a new product added under its brand 'Safal' recently, adding that pulses will be sold both at Safal and other retail outlets. Presently, Mother Dairy -a wholly-owned subsidiary of National Dairy Development Board (NDDB) -- is selling pulses at all its Safal outlets in Delhi and National Capital Region (NCR). It plans to sell pulses in non-Safal

outlets next month. "We are working to enter into other markets beyond NCR and by the end of next month, our pulses will be available in Bihar, Jammu and Kashmir, Uttarakhand and Assam," Sahoo added. At present, the company is selling 14 variants of pulses in the packets of one kg each in the price range of Rs 48 to Rs 125 per kg depending upon the type of pulses. Mother Dairy is the second big player after Tata Group which has entered into the market of branded pulses. Tata group is selling its pulses under the brand name 'Tata i Shakti'. Mother Dairy earns half of its revenue in horticulture segment from sale of fresh fruits and vegetables, followed by sale of pulp and packed food items including jams and sauces. Besides horticulture, the company's other three business segments are -- milk, dairy items and edible oils under the brand 'Dhara'. It is the single largest seller of milk and dairy products in the NCR. At present, the company has 400 Safal outlets in Delhi- NCR. Safal outlets are being operated on the franchise model, where the company provides basic infrastructure. Gone are the days when the much loved ice-cream for children and adults alike was available in limited flavours. Now, ice-cream is available in a wide range of flavours and varieties. Designer icecreams, concept ice-creams and frozen less instant ice-creams flood the market providing a real treat to ice-cream lovers. Ranging from the original fruit flavours to a medley of cocktail flavours mixed with liquor and squashes, it has it all.

For Updated News Everyday logon to www.agrofoodprocessing.com

Beverages & Food Processing Times


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Global Consumer Products is rolling out its first brand, Luvit Chocolates

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lobal Consumer Products, a startup founded by former Godrej Group MD A Mahendran, is rolling out its first brand, Luvit chocolates, to compete with brands such as Cadbury from Mondelez International and Nestlé’sKit Kat.

muscle the company can put behind the brand,” the official said. Though consumption of chocolate in India is small compared with developed markets, the country is among the fastest growing markets for the category.

Mahendran’s firm, backed by Goldman Sachs and Mitsui Global, is tying up sales and distribution for the launch. The investment firms have put in over Rs 300 crore in Global Consumer Products. Besides chocolate, the startup plans to diversify into confectionery and snacks.

The Rs 6,800-crore chocolate market is led by Mondelez, which has a share of almost 70%. Nestle and the Ferrero Group has a share of 18%

“Our first local production will help us innovate not just on recipes, but on prices and packaging and will be a key enabler to accelerate growth. The innovations won’t necessarily be recipe-related, they could also be occasion-related,” Abou-Oaf had said. Mars’ local innovations include the first vegetarian Snickers, made only for India, and heat-stable Galaxy, which doesn’t need to be refrigerated.

“The rollout will be in a phased manner and will be scaled up to other confectionery categories. Chocolate is a growing category and we have enough funding to build distribution and scale,” Mahendran said. There has been a slew of chocolate brand launches as demand picks up after two years of slowing sales in discretionary categories. Nestle came out with KitKat Senses, the first premium variant of its wafer-coated chocolate. Mars, the world’s largest chocolate maker, last week announced it would invest Rs 1,000 crore to set up its first plant in India to increase its presence in the country. Luxury chocolate brand Schmitten was recently introduced here. Luvit will be priced in the range of Rs 20-30 per bar, said an official aware of the plans. “Its success will depend on how much salience and distribution

“Indian consumers have always had a sweet tooth but what’s happening now is a gradual transition from traditional ‘mithai’ to chocolate, with more innovation, better distribution and supply ly. Besides, research findings tell us that adult consumption of chocolate is growing steadily,” Chawla said. Ehab Abou-Oaf, Mars Chocolate regional president, Asia-Pacific, had told last week in an interview that the maker of Mars, Snickers, Twix and Bounty chocolates will step up its presence and expand the market through innovation.

and 8%, respectively. The consumption of chocolate-flavoured products is among the fastest-growing within packaged foods – whether it is chocolate, flavoured milkfood drinks, cookies and biscuits or bread spreads, according to Devendra Chawla, group president, food and FMCG, at Future Group, the country’s largest retailer.

Nestle’s KitKat Senses represents its maiden foray in the high-margin premium chocolate category. Over a year ago, Nestle had introduced Alpino chocolates in an attempt to build its presence in the premium segment, where Ferrero has been gaining traction with its Ferrero Rocher and Kinder Joy brands. Gujarat-based textiles and hospitality group Rajhans too has brought in luxury Swiss chocolate Schmitten to India.

Beverages & Food Processing Times

CHOCOLATENEWS

Mars to invest $160m on first Chocolate Factory in India

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hocolate manufacturer Mars has said it is on track to open its first chocolate plant in India, where its popular Snickers and Galaxy bars will be made to meet rising demand. Mars, which currently ships chocolate into India, said its Indian arm had inked a memorandum of understanding with the Maharashtra state government in Mumbai for a $160m (£107m, €151m) factory in Pune. Mars said that the investment is “expected to generate direct employment opportunities for over 200 people and indirect employment opportunities to over 1,000 people, and bringing in the relevant know-how, operational excellence and global best practices.” MV Natarajan, general manager of Mars International India, said in a statement: “chocolate industry in India is growing at nearly 20% every year and we see this as a huge opportunity to expand our chocolate portfolio in the country in the coming years.” z Ehab Abou-Oaf, Mars Chocolate Asia Pacific regional president, commented: “India is a high priority market for Mars. We are here because we have a long term view of business in India…. We hope to capitalize on that through this manufacturing plant…” US-based Mars is the third largest confectionery business the worldover behind Nestle and Mondelez International, the maker of Cadbury, according to Euromonitor International


28 Vol. 7, Issue 11-April-2015

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CONFECTIONERY NEWS

Confectioners bet big on rising demand for baked goods

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MCG brands, e-commerce companies and educational institutions are catching on to a new fad among households and wannabe chefs – baking and bakery products. While companies such as Del Monte are launching new products used for baking, e-commerce sites such as Snapdeal are seeing demand for bakeware. Belgium bakery, confectionery and chocolate products manufacturer Puratos has even opened a school to help those who want to learn a thing or two about baking. “Consumer tastes in India are becoming ever more sophisticated and this is reflected in a strong demand for bakery, patisserie and chocolate products. We see a huge gap in availability of skilled craftspeople in the bakery and patisserie industry,” said DhirenKanwar, Country Head,

Puratos Indian Subcontinent. Puratos has also set up experience centres to help small and medium bakers perfect the art. For Del Monte, India is becoming a huge bakery market with both QSR chains and home baking driving up the demand. Yogesh Bellani, CEO, Field Fresh, a joint venture between Bharti Enterprises and California-based Del Monte Pacific, says that the company recently launched its dessert sauces, primarily aimed at such consumers. “India is largely a savory sauce market, but we have now introduced fruit-based and chocolatebased sauces. Dessert sauces are growing at significantly. We also cater with our specific range of products for home bakers,” he added. The per capita consumption of bakery products in India stands at 1-2 kg per annum, which is still much lower than the developed countries where it is between 15 and 50 kg per annum. The size of the bakery ingredients market is approximately 3,000 crore in India and growing at 12-15 per cent. As the demand for bakery products grows there is also a need for chefs who can create that perfect pastry. Niklesh Sharma, MD & Executive Pastry Chef of Malaysia-based Academy of Pastry Arts, which launched its operation in Delhi recently to train young entrepreneurs, says, “India really deserve an International Pastry school as 60 per cent of the executive pastry chefs and pastry instructors go to Malaysia for enhancing their skills and knowledge.” According to industry estimates, the cake segment occupies nearly 20 per cent market following the bread category, which is approximately 78 per cent of the baked products market. Besides bakery institutes, Puratos has also set up experience centres to reach out to small and medium bakers.

Beverages & Food Processing Times


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DAIRY NEWS

Next fiscal likely to open up new export markets for Dairy Industry backed by lackluster international demand, rising domestic prices and the abolition of SMP (Skim Milk Powder) export incentives taken by the government since July 2014.

Though the agency said that it expects dairy exports to pick up in FY16, these events will continue to impact exports in the first half of FY16. Although the lifting of European milk quotas will increase competition, it is unlikely to impact India’s exports as the international prices continue to be unattractive. However, the report said that it expects India to remain a net dairy exporter in FY16 with surplus SMP stocks and the government maintaining its stand on no import duty concessions on dairy.

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he global dairy market is in turmoil. One of the reasons for this turmoil is the new strategy adopted by China lately,” said India Ratings & Research (Ind-Ra), a credit rating agency.

In its latest report on Indian Dairy Industry released on March 19, 2015, Ind-Ra said that China instead of importing milk and milk items is increasingly meeting its dairy demand by buying up diary assets in New Zealand. This is similar to the strategy China adopted earlier with respect to sourcing of natural resources to meet its domestic demand. India’s dairy exports haven’t performed well during the first eight months of FY15 due to a drop in international prices

imports were affected during FY11 and FY12 due to the export ban imposed on milk products such as skimmed milk powder (SMP), whole milk powder (WMP), dairy whitener, infant milk foods, casein and casein products due to shortages in the domestic market. India’s dairy export market is dominated by milk, cream and ghee. Milk scarcity in FY11 and FY12 resulted in milk and cream (average: 45.38%) outweighing the usual import products such as butter and related dairy spreads (30.45%) and whey (19.1%). The top 10 export destinations accounted for 72.33% of the country’s dairy export with

FY16 is also likely to open up new export markets for India in light of Russia not planning to give up on its import embargo on dairy products from the European Union, the US, Australia, Canada and Norway in light of the Ukrainian crisis. Gujarat Co-operative Milk Marketing Federation Limited (Amul), India’s largest dairy cooperative, is exploring export options to Russia. India’s dairy exports, on an average, contributed only 0.09% to the total exports and grew at a CAGR of 22.02% over FY06-FY14 to INR33.26bn. Dairy imports during the same period grew at a CAGR of 25.57% to INR2.14bn and on an average accounted for only 0.03% of the total imports. India’s dairy exports and

Bangladesh (19.17%) topping the list in FY14. Even in case of import, the top 10 countries accounted for 94.15% of the total dairy import as 21.42% of India’s dairy import was from France alone. Although India is no longer dependent on imports to meet its demand for dairy and dairy products, it does not feature among the key dairy exporting countries of the world. India’s share in the world dairy export is miniscule (average share 2000-2011: 0.62%).

11 Edition th

Most of the milk and dairy products are consumed domestically due to dietary habits and the restriction imposed by the government on dairy exports during deficit years. Another reason for muted export is the lower share of organized sector in the marketable surplus of milk and dairy products in India.

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Global price movement impacts the quantity of export and imports of milk and milk products. A higher international price incentivizes producers to push up the exports and vice-versa. A drop in the international price of dairy products in FY10 resulted in dairy exports dropping by 50.99% (quantity).

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Beverages & Food Processing Times


30 Vol. 7, Issue 11-April-2015

7th Anniversary

PACKEAGING NEWS

Indian Packaging Industry turnover to reach $32 billion by 2020

With a turnover of $24.6 billion and a growth rate of 13% to 15% annually, the Indian packaging industry is expected to reach $32 billion by 2020. Here’s a look at key facts and drivers. The per-capita consumption of packaged beverages and food in India is still very low compared to other regions. However, expenditure on these products has doubled in the last five years. Within the next five years it will increase by another 14 per cent annually, as the demand for processed food is rising due to growing disposable

incomes, urbanization, and a young population. Keep an eye on the Indian foodservice industry, too. Currently it’s estimated to be nearly $13.79 billion. But it’s growing at a healthy compound annual growth rate (CAGR) of 17 per cent, which has significant implications for the packaging sector. Plans are currently in place, thanks to public and private funding, to establish 30 to 40 mega food parks. Corresponding infrastructure for packing, packaging transport, and refrigeration

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are part of these plans, so this development is expected to give food manufacturing— and, by extension, packaging—a big boost. In fact, by 2015 more than $25 billion is to be pumped into the food sector and the required infrastructure. Packaging has an annual global turnover of about $550 billion, and India’s share is about $16.5 billion per annum. According to a recent Mckinsey report, there will be a ten-fold increase in India’s middle class population by 2025, which will further trigger the consumption of packaging materials. This will bring another growth spurt to packaging, says the Mckinsey report, which also notes that the country needs more packaging professionals. According to the Packaging Industry Association of India (PIAI), packaging in India is one of the fastest growing sectors, partly because it spans almost every industry segment. Right from packaging of food and beverages, fruits and vegetables, drugs and medicines, to highly dangerous products, packaging has led to greater specialization and sophistication over a period of years. At present, the Indian Packaging Industry is ranked 11th in the world, and industry experts are of the opinion that packaging in India is expected to grow to $16.5 billion by 2015. However, according to a report conducted by the New Delhi based Centre for Market Research &

The report observed the main problems faced by MSMEs are: lack of available sources of credit, high cost of packaging materials, lack of skilled labour, irregular power supply, and an underdeveloped sense of how to market, brand, and distribute. The report goes on to say that today, flexible packaging is the fastest-growing sector of India’s packaging industry. The shift from traditional rigid packaging to flexible packaging on account of its attractiveness, cost effectiveness, and strength is largely aided by increasing consumer demand for processed food.

T

by 50 per cent to 8.66 lakh tonnes in February due to higher inward shipments of palm oil and lower crushing of soyabean in the domestic market, according to industry data.

Edible Oils soften on low demand

he wholesale oils and oilseeds market depicted a weak trend during the week as select edible oils declined owing to slackened demand from Vanaspati millers and retailers amid a weak global trend. However, groundnut oil managed to end higher on the back of increased demand from retailers. In the non-edible section, linseed and castor oils were under pressure on reduced off take by consuming industries. Marketmen said sluggish demand from Vanaspati millers and retailers at prevailing levels and a weak global trend mainly led to the slide in select edible oil prices. In addition, adequate stocks position on increased supplies from producing belts influenced the sentiments, they said.

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Social Development, packaging in India is highly fragmented and has 22,000 firms, including raw material manufacturers, machinery suppliers, and providers of ancillary materials and services. Moreover, 85% of these firms are Micro, Small & Medium Enterprises (MSMEs). As the industry grows and matures, there is expected to be a trend towards consolidation as supply side companies merge and acquire smaller companies to increase scale, reduce competition, and improve bargaining power with customers, the report said.

Globally, palm oil futures fell to 2,238 ringgit (USD 603) a metric tonne, the lowest level since February 4, on Malaysia Derivatives Exchange during the week. Meanwhile, India’s vegetable oil imports increased

In the national capital, cottonseed mill delivery (Haryana) and sesame mill delivery oils moved down by Rs 200 and Rs 50 to Rs 5,650 and Rs 7,400 per quintal, respectively. Tracking a weak global trend, soyabean refined mill delivery (Indore) and soyabean degum (Kandla) oils declined Rs 50 each to Rs 6,700 and Rs 6,400 per quintal, respectively. Palmolein (rbd) and palmolein (Kandla) oils followed suit and eased by a similar margin to Rs 5,700 and Rs 5,550 per quintal, respectively. On the other hand, groundnut mill delivery (Gujarat) oil found selective buying from retailers and moved up by Rs 100 to Rs 8,700 per quintal, while mustard expeller (Dadri) oil moved in a narrow range on alternate bouts of buying or selling and settled at last level of Rs 7,550 per quintal.

www.veetekplastics.com e-mail: navinvisaria@veetekplastics.com, inquiry@veetekplastics.com Beverages & Food Processing Times


30-A Vol. 7, Issue 11-April-2015

7th Anniversary

-Dr J V Parekh

D

r J V Parekh is India’s most renowned dairy industry consultants with 100s of dairy projects in his entire carrier he needs no introduction. Recently our Editor Firoz H Naqvi had a detailed discussion with Dr Parekh, following are the excerpts of the same.

this rate, which implies adding 6 million tones of extra milk production annually. The reason is that the demand for dairy products would continue to increase in next 5-6 years. We need to continuously increase milk production and it has to be sustainable.

Dr. Parekh discussing joint venture during Interpack Exhibition What are the services you are dealing with; please brief us about your business? We are a leading Dairy Consultant in India. We have more than 30 years experience in planning, formulation and execution of the Dairy Projects in India and abroad. We provide turnkey consultancy services from concept to commissioning of the project, which includes technical inputs like preparation of detailed Project Report, Building and Machinery Layouts, Technical Knowhow, formulation, quality control, packaging, recruitment of manpower, training etc. We are based in Mumbai, Business Capital of India. How do you look at the Indian dairy industry and its growth in the last 5 years? In 2012-13, we produced about 132 million tones of milk. Last fiscal, we had an output of 138 million tones. The output is expected to grow at

Processed dairy products will have bigger growth than processed milk as a liquid after about 5-6 years.

from certain specific areas. I do not see the possibility of import of milk in the near future. Technologically where do we stand if we compare it with the developed countries? The recent development in Indian context is to establish bulk milk coolers (BMC) by both private and cooperative sectors. There has been huge numbers of BMCs being set up all across which shall certainly improve the quality of milk, elimination of sourage of milk and in turn ensuring better rates for the farmers. Today these equipments have also been linked to modem for on line data capturing with centralized management of database. There is also trend for use of sexed semen for artificial insemination in few countries however due to its exorbitant import cost, in India it may take some time till technology is locally available. During last 50 years we have seen good development in separation, homogenisation and powder manufacturing technologies which have made lots of advancement mainly in terms of high speed processing and automation. The latest trend in milk processing during past decade is totally on different lines mainly focussing on high capacities and more energy efficiency. There has been noticeble development in filtration technology e.g. reverse osmosis, nano fitration, ultra filtration etc. These development have resulted into new ways to concentrate the milk before drying and also handling whey to produce more valuable proteins which are in great demand from the cosumers. We have to keep watch on development of cold concentration technology which may be much

Though India is the largest producer of milk but the growth of production of milk is still shorter than the population rate of growth and demand, what needs to be done to become a surplus milk producing country? One of the key focus areas is improvement in the genetic potential of animals. The NDDB intend to do it by a combination of factors – focusing on high genetic merit indigenous cattle, production of high genetic merit bulls, improving artificial ]insemination etc. The major portion of intervention will be on good indigenous breeds; also the need to get exotic breeds from outside,

Dr. Parekh inspecting Filling Machine during Interpack Exhibition

Beverages & Food Processing Times

benefical to Indian dairy processors in terms of long distance transporation and energy savings in manufacturing of milk powders. In view of growing demand of cheese and paneer, it is prudent to experiment these technological development to get best out of whey protein derivatives with high end final products. There is also good develpoment in ultra-heat treatment processing with economical packaging material to reduce the overall cost. In India, such processing facilities are being set up by both Cooperative and Private sector. There has been rapid growth in development of sports drinks out of milk protein derived out of whey. This is one of the fastest growing segments in few countries. In India, this requirement is mainly catered by imported whey protein concentrates in powder form however such products have good future in Indian market. Whey protein based sports drinks designed for immediate recovery after intensive work out have been gathering large consumer base. Another area of product innovation is to position milk in snack categories which has led to development of lots of varieties of cheese sauces, dips and beverages mainly flavoured milk, coffee and chocolate based milk. Packaging plays an imminent role in dairy products due to shelf life and preservation of freshness. There has been development of HDPE bottles for packing UHT milk which are cost economical and more environment friendly due to good recyclability. Modified Atmospheric Packaging (MAP) is becoming more relevant for


30-b Vol. 7, Issue 11-April-2015

7th Anniversary

doubled – from 15 per cent a decade back to around 30 per cent now. This is seen as an encouraging sign, with most big players assuring quality checks at mulitple points. The fast expanding private sector investment and entry of global players is also intensifying competition. In the last 5 years, USD 150 mn has been invested by private equity investors in the Indian Dairy Industry, of which USD 125 mn has come in the last 18 months. The capital raised has largely been invested in backward and forward integration of the private dairy companies. Private equity investors are encouraging Indian companies to move up the value chain. There is a big Business Prospects and Investment Opportunities in the Dairy Industry in India.

increased shelf life and preservation of freshness of milk produts. In India, MAP should play more important role due to hostile ambient conditions and more logistics and distribution time. Products like Paneer, Khoa and Indigenous sweets have great opportunities if MAP is used for packaing of these products. Supply chain management has been a critical area for Indian milk processing companies, what is the best solution to manage it even in the remotest areas? The main problems resolve around the supply chain and the cold chain infrastructure in the country. Starting from milk procurement, processing, packaging and marketing of milk and milk products have to be transported through cold chain. In order to start operation in a particular city, it becomes necessary to appoint a distributor somewhere in the vicinity and that distributor with his infrasturcture of cold room, transporation, manpower needs a certain threshold of sales to break even. The main issue is to reach milk products to end point on time. It is a big issue because of the logistics related bottlenecks when it comes to transporting the products from manufacturing unit to the consumer. Private Equity Funds have been talk of the

EXCLUSIVE INTERVIEW

Shree Devendrabhai Shah welcoming Dr. Parekh and Mr. Herve Lanoe at Parag Dairy.

town in recent years in Indian food processing industry and successful, do you think dairy industry is mature enough for this type of investments?

The National Dairy Development Board (NDDB) has prepared a National Dairy Plan which aims at meeting the projected demand of about 180 million tonnes of milk by 2021-22. With an estimated

outlay of about Rs.17,371 crore, the Plan has three major components --- enhancing milk production through increased productivity; substantially strengthening / expanding the infrastruture for procurement, processing, marketing and quality assurance through existing institutional structures and by promoting new ones; and human resource development. The share of the organised sector has meanwhile

Growth/demand of milk products other than milk has also been on higher side in India, do you see it as a good venture for value addition in the Industry? India is witnessing winds of change because of improved milk availability, a change –over to market economy, globalization, and the entry of the private sector in the dairy industry. The value addition and veriety in the availability of milk products are on everybody’s agenda. There is an increasing demand for new products and processes. The main reasons are – an increase in disposable incomes; changes in consumer concerns and perceiptions on nutritional quality and safety; arrival of foreign brands; increasing popularity of satellite/cable media; and availability of new technologies and functional ingredients. From conventional milk products like paneer and cheese, the market has evolved over time and now caters to the wellness market as well with its sugar free and probiotic milk products. High margin dairy products like yogurt, ice cream and cheese constitute only 8% of the Indian dairy market currently; expected to grow at CAGR 25% over next 5 years. Moreover, with rise in disposable income and educational level, the awarness for nutrition and health improves which in turn raises the demand for health and nutritional products.

N

ame it and you have it’ is the concept of the modern day ice-cream parlors to be in the lead in the market. From designed conceptual ice-creams to the fresh ‘make-before-your-eyes’ ones, custom made ice-creams are available now in Ïndia. There are more, in fact a lot more than the usual vanilla, butterscotch, chocolate, pista, badam and black currant flavours. Mixtures of flavours with add on syrups, nuts and cookies, cakes, molded chocolate bars and flakes are the ones you can add to the icecream the manner in which you want it. Gone are the days when the much loved ice-cream for children and adults alike was available in limited flavours. Now, ice-cream is available in a wide range of flavours and varieties. Designer icecreams, concept ice-creams and frozen less instant ice-creams flood the market providing a real treat to ice-cream lovers. Ranging from the original fruit flavours to a medley of cocktail flavours mixed with liquor and squashes, it has it all. Major ice-cream chains like CreamStone, Cream Bowl, Mist and Creams and others always want to hook their customers with different approaches and numerous menu options to remain market leaders.The advent of concept ice-creams has also taken ice-cream eating to a new level. The custom made ice-creams are widely preferred to be taken as lunch or dinner. Some ice-creams are offered on a platter or in attractive glasses that just fill your stomach with a mere look at them. These heavy ice-creams come along with a combination of flavours and real fruits topped on them. Ranging from Rs 60 to Rs 350, the all new concept ice-cream is the paradoxically the hottest thing this summer.

Beverages & Food Processing Times


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Vol. 7, Issue 11-April-2015

7th Anniversary

Prabhat Dairy to raise Rs 500-600 Cr by selling shares

P

rabhat Dairy Pvt. Ltd is looking to raise Rs.500-600 crore by selling shares to the public, two people familiar with the issue said. The firm has already hired a domestic investment bank for the initial public offering (IPO) and is looking to hire more bankers, the first of the two people mentioned above said. The firm, which sells Milk Magic condensed milk, Flava flavoured milk and All Rounder skimmed milk powder, is backed by India Agribusiness Fund (IAF), which is sponsored by Rabobank Group. “Prabhat is looking to raise anywhere

CLASSIFIED

between Rs.500-600 crore through the IPO, and existing private equity investors are looking at exiting partly,” said the second person, adding the firm has not yet decided when to file IPO papers with the market regulator. A Prabhat Dairy spokesperson said the firm is exploring options to meet business needs. “Investment bankers are exploring alternative fund-raising options so as to put forth the same to the board of directors. Only the board of directors can take any decision,” the spokesperson said in an email response, adding the firm sees growth opportunities in making value-added products. The firm initially raised Rs.140 crore from IAF and French development finance institution Proparco in August 2013. Of this, IAF had brought in Rs.80 crore. Rabo Equity Advisors and Proparco did not respond to a questionnaire sent via email. Started in 1998 by Sarangdhar Nirmal, the firm makes ghee, flavoured milk, sweetened condensed milk and skimmed milk powder, apart from packaged milk. Its manufacturing facility is at Srirampur in Maharashtra. The firm reported a net profit of Rs.52.7 crore in fiscal 2014, compared with a profit of Rs.29.2 crore in the previous year, according to documents available with the

DAIRY NEWS

NZ’s Fonterra buys stake in China’s Beingmate for $553mn

N

ew Zealand’s Fonterra Cooperative Group Ltd said it paid $553 million for a near 20 per cent stake in China’s Beingmate Baby and Child Food Co Ltd, as it looks to boost its presence in the country’s branded dairy industry. China is a crucial market for Fonterra, importing about a quarter of New Zealand’s total dairy exports to feed growing demand for milk products, particularly formula, from the country’s booming middle class. Fonterra said it paid 18 yuan per share for 192 million shares in the Chinese baby food and infant formula maker, giving it an 18.8 per cent stake in the company, short of a target of 20 percent announced in August. “We are extremely satisfied and confident that the partnership can and should proceed on the basis of the 18.8 percent stake,” Fonterra chief financial officer Lukas Paravicini said.

Fonterra was not immediately available for further comment, but analysts said the smaller stake may have been due to a fall in the New Zealand dollar since the offer was announced. The price per share was in line with initial plans, but the total price tag of around NZ$752 million was 22 per cent higher than initially forecast, reflecting the weaker currency. The price per share represented a 1.7 per cent premium to Beingmate’s trading price of 17.68 yuan per share on Monday, and was at the top end of its one-year average around 12-18 yuan. Fonterra was paying a high price to raise its presence in China’s branded infant formula market, valued at around $18 billion in 2014 by Euromonitor, given that many multinationals are investing heavily and demand expectations are easing, said Forsyth Barr analyst James Bascand. The New Zealand company, the world’s largest dairy exporter by volume, has already lowered its forecast for Chinese dairy demand, anticipating consumption to increase 4 per cent a year through 2020, from an earlier forecast of 7 per cent. Fonterra’s sharetrading fund was little changed after the announcement, after rising around 1 percent to NZ$5.90 in earlier trade.

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32

7th Anniversary

Vol. 7, Issue 11-April-2015

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he Union Ministry of Food Processing, Government of India, announced initiatives towards development of food processing activities and better management of food products in India. In this regard, Harsimrat Kaur Badal, the Union Minister of Food Processing, informed about the government’s steps towards establishment of one Mega Food Park (MFP) in every State across the country. Speaking at the inaugural event of 30th AAHAR International Food and Hospitality Fair organized by India Trade Promotion Organisation (ITPO), Badal referred to the MFP initiative as a flagship program of her Ministry and said the MFPs shall become a hubs for food processing activities across all the States.

the current level of fruits and vegetable processing in the country. Mentioning that the current processing level of fruits and vegetables in India stands very low at 2%, the Union Minister exuded confidence saying ‘there is a larger scope and a greater potential for increasing the same’. Meanwhile, SadhviNiranjanJyoti, Minister of State for Food Processing Industries, also informed that a total 42 MFPs have already been sanctioned by the government for setting-up across

FOOD PROCESSING NEWS

the country, out of which, 21 MFPs are at various stages of implementation, while four MFPs are progressing towards meeting the conditions for final approval. On an average, each project will have around 3035 processing units at a total investment of Rs 250 crore, which was expected to result in an annual turnover of about Rs 450-500 crore and creation of direct & indirect employment to the extent of about 30,000 persons, SadhviNiranjanJyoti added. Earlier, MarekSawicki, Agriculture Minister of

Poland, also said that his Government was in the process of launching promotional campaigns in India, aimed at supplying food processed in Poland to the Indian consumers. Prior to this in February 2015, the Union Agricultural Minister Radha Mohan Singh had also asked the Lebanese delegation led by Lebanon Agriculture Minister AkramChehayeb, to consider setting up of MFPs and Cold chains in India to ensure better supply chain. He further called for the exchange of modern

Stating that there was a huge potential for value addition for farmers through food processing, the Minister said that the MFPs will help in better management of food wastages and will also facilitate better prices for consumers. While noting that India was a leading producer of milk and the second largest producer of fruits and vegetables, the Minister also raised concerns over

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he state government has sought three weeks’ time to comply with the additional information sought by the Centre for giving approval to Huma Coastal Mega Food Park, whose earlier clearance was cancelled in February last year. The promoters of mega food park had applied afresh against the expression of interest (EOI) bids invited by the Union food processing ministry for establishment of new mega food parks under the amended guidelines for such projects. “The Government of India has sought some more information on the project. We have intimated the promoters of the food park to comply with it within three weeks. We have requested the Centre simultaneously to allow us three weeks for compliance. The queries sought by the Centre includes certain clarifications on land, among others,� said an MSME department official. Earlier, the state government had requested the Centre to consider the bid of the promoters of the food park favourably and grant it approval so that work can be started on the project, which is key to promotion of food processing industries in the state. The park was earlier accorded in-principle approval by MoFPI on September 21, 2012 under the Mega Food Parks Scheme. However, despite several time extensions of the approval, the SPV created to implement the project, Huma Coastal Mega Food Park Pvt Ltd, could not meet the prescribed conditions for the final approval. The Inter Ministerial Approval Committee, in a meeting on February 11, 2014, had withdrawn its consent after reviewing the status of compliances achieved by the SPV. MoFPI, in a letter to the state government later, had said, the project SPV can seek fresh approval under the new guidelines of mega food park scheme. Recently, the Centre has accorded its nod for a sea food park proposed on the outskirts of Bhubaneswar city under the Mega Food Park Scheme of the Government of India. EDITOR Firoz H. Naqvi

CONSULTING EDITOR Basma Husain

MARKETING EXECUTIVE Sameer K

PRODUCTION MANAGER Syed Shahnawaz

GENERAL MANAGER Gyanandra Trivedi

CIRCULATION MANAGER Seema Shaikh

121, 1st Floor, Rassaz, Multiplex, Mira Road (E), Thane -401107. Tel: +91-22-28115068 /28555069. Email:info@agronfoodprocessing .com, Website :www.agronfoodprocessing.com Printed, Published By -Firoz Haider Naqvi, RNI no- MAHENG13830 Printed at: Roller Act Press Services, A-83 Ground Floor, Naraina Industrial Area, Phase -1, New Delhi -110028, Reg Office :103, Amar Jyot Apts, Pooja Nagar, Mira Rd (E) Thane-401107, Delhi Office: F-14/1, Shahin Baugh, Kalandi Kunj Rd, New Delhi -110025 The views expressed in this issue are those of the contributors and not necessarily those of the news paper though every care has been taken to ensure the accuracy and authenticity of information, "Beverages & Food Processing Times" is however not responsible for damages caused by misinterpretation of information expressed and implied with in the pages of this issue. All disputes are to be referred to Mumbai jurisdiction

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