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Harsimrat Kaur will be the face of Food Processing Ministry in centre in Modi Sarkar

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arsimrat Kaur Badal Punjab’s most powerful lady and wife of Sukhbir Badal deputy chief minister of the state will be the food processing industries minister of NDA government in the centre. Akali Dal MP is a prominent face of the party in Parliament. Belonging to the powerful political family of Punjab, she was elected for the second time from Bhatinda Lok Sabha seat in the 2014 Lok Sabha elections after defeating her husband Sukhbir Badal’s cousin Manpreet Singh Badal. Punjab is the food bowl of the

country with highest capacities of food grains for processing along with vegetables and fruits. Punjab is also one of the leading states in food processing. Now the challenge is to make India a leading power in food processing. Being a lady and a minister from Punjab it will be easy task for Harsimrat Kaur but the expectations will be high from her to bring food processing ministry out from comma. Kaur has many challenges she has to deal with after joining office. Food inflation has been one of the major challenges for the UPA government and food processing

industry always says that this challenge can be sorted out with the help of food processing industry of the country. Food processing industry is also facing issues of non uniformity in taxes, slow movement of mega food park scheme across the country, lack of infrastructure such as cold chain, packaging centres, value added centre, modernised abattoirs etc. Challenges faced by the sector are inadequate infrastructural facilities, comprehensive

national level policy on food processing sector, food safety laws, inconsistency in central and state policies and availability of trained manpower. During the previous government tenure food processing ministry functioned very smoothly initially under the congress MP Subodh Kant Sahai but later after the shuffling of the ministries went under Agriculture ministry and become almost minister less. Born in a family that traces its

roots to Attar Singh Majithia, a prominent General in Maharaja Ranjit Singh’s army, 47-year-old Harsimrat graduated from Delhi University and pursued textile designing for three years after college. A mother of two daughters and one son, Harsimrat has also been at the forefront of an initiative ‘Nanhi Chhan’ which aims to protect the girl child.

Badal Promises to review FSSAI’s Role

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arsimrat Kaur Badal Cabinet Minister for Food Processing Industries in a meeting with delegates from CII, PHD Chamber and FICCI in separate meetings assured to review the role of the Food Safety and Standards Authority of India (FSSAI). The Minister assured the industry and all stakeholders that policies

and schemes shall be reviewed, and her government’s aim is to clear all the bottlenecks and boost growth of the farming and food processing sector, an official statement said. During the meetings, Badal said “focus is to curb inflation, mitigate fruit and vegetable losses, drive and accelerate food processing industries growth and review the role of FSSAI regarding long delays in clearing product approvals.” In these meetings, various issues relating to improving the food processing sector in the country came up for discussion. The major issues discussed includes revisiting regulatory regime, rationalisation of fiscal incentives, tax concessions to mega food parks and focussing on perishables, GST, role of APMC in movement of vegetables and skill

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development in food processing, the statement added. FSSAI is an agency established under the Food Safety and Standards Act, to look into the quality standards of food articles and regulate their manufacture, storage, sale and import to ensure availability of safe and wholesome food for human consumption.

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B everages & Food Processing Times - June - I - 2014

Beverages News

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Dlecta Foods Launches D’lecta Café, forays into hot Beverages Segment

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lecta Foods Pvt. Ltd., a leading name in the Food & Beverages sector has launched D’lecta Café as part of its ongoing expansion drive. Under this vertical, Dlecta Foods will make available everything related to tea and coffee under one roof. The entire solution will comprise of an attractive looking D’lecta branded thermopot, three varieties of premium tea, coffee sachets, coffee premix, liquid dairy creamers and consumables like sugar sticks, paper cups, paper napkins and stirrers. The tea and coffee consumables along with the thermopot will come in compactly designed trays that will store

everything in specially created slots. Tea-Station“Our hot beverage solutions come in two sizes. The larger one serves up to fifty beverages in one filling while the smaller one serves up to six cups. These are visually attractive and efficient performers. A cup of tea or coffee can be made in less than half a minute giving a much superior taste. These are ideally suited for offices, hotels and homes,” says Mr. Deepak Jain, Founder & Managing Director, Dlecta Foods Pvt Ltd. The hot beverage solutions have been designed and developed by an internal team at Dlecta Foods.

Developed for catering to varied users, the products have been custom designed in 2 different variants. The one that serves up to 50 beverages per refill is branded as the ‘Tea Station’ and is more suitable for a small to medium offices. The other variant, the ‘Welcome Tray’, serves up to 6 cups and is a more decorated ensemble. It is ideal for homes, small offices and hotel rooms. The company has recently announced plans of scaling up its presence in the consumer segment and is launching a slew of new products over the next twelve months. D’lecta Café will add value and work as an extension to the well established dairy business. “Indians are compulsive tea drinkers. Whether at home or office, they are continuously consuming tea or coffee. But the problem has been that in most offices coffee vending machines are used to make tea or coffee. These beverages taste very bad, are unhygienic and cannot be customized for sweetness, strength or milk. Those who are conscious of quality will opt for D’lecta Café,” adds Mr. Jain. “Another trend observed in this country is the rampant use of milk powder in tea and coffee. Most milk powders have high

CLINTON FOUNDATION AND PEPSICO TO FURNISH INDIAN CASHEW

To impel social and economic development in emerging markets like India, PepsiCo has tied up with former US president Bill Clintonrun - The Clinton Foundation. The partnership’s inaugural project was launched in Maharashtra, India with an agriculture initiative to source vitamin-rich cashew fruit from smallholder farmers. Cashew fruit - which typically goes unused by most cashew nut farmers - is high in nutritional value. It is rich in potassium and contains as much as five times the vitamin C as an orange and 50 times the vitamin C as an apple. This arrangement is expected to create an important new ingredient supply for PepsiCo’s local juice business and also help get better prices for cashew growers. Founded by President Bill Clinton and philanthropist Frank Giustra, the Clinton Foundation’s Clinton Giustra Enterprise Partnership

model, initiative will apply modern agricultural techniques to improve cashew farming practices, boost yield and productivity and increase income for local smallholder farmers. Sustainable agriculture is critical to PepsiCo’s supply chain and they have a long history of working with local farmers around the world in ways that strengthen our business and the communities in which the company operate. PepsiCo said in a statement said, “It will also scale up and strengthen India’s cashew supply chain to build the future potential of a domestic and export market”. Thus PepsiCo plans to use cashew fruit juice as one of the ingredients in some of its blended fruit juice products in India. “PepsiCo India plans to begin incorporating the fruit into some of its blended juice products starting in Spring 2015. Most cashew farmers in this area farm on less than one hectare of land and live below the poverty line. The Clinton Giustra Enterprise

Partnership uses market-driven models to improve the livelihood of smallholder farmers by providing training, facilitating the purchase of their harvest and handling their distribution and logistics. The approach has been designed for replication in value chains throughout the world and is currently catalysing similar supply chain enterprises in Latin America and Haiti. According to Mr Bill Clinton, “Committed partners like PepsiCo demonstrate the tremendous impact that social enterprises and the private sector can make when they work together to solve business problems that also advance social good. While PepsiCo’s chairman and CEO, Indra Nooyi reflected that this initiative embodies Performance with Purpose – PepsiCo’s recognition that our success is inextricably linked to society’s success. The program first India cashew harvest is currently underway. It will be sourced from more than 2,000 smallholder farmers in 2014, with plans to scale the number to as many as 15,000 over the next five years.

quantity of sugar and less of milk. The sugar component not only is unhealthy, especially to diabetics, but also interferes with the taste of tea and coffee. As a substitute to milk powder we have introduced D’lecta Milke. These are 10 gram serving of evaporated milk and are ideally suited for one cup of tea or coffee. Made from pure cow milk D’lecta Milke has no sugar content and comes in aseptic packaging making it simpler to use,” says Mr. Jain. Milke creamer is processed at the company’s fully owned and operated state-of-the-art plant at Raigad, Maharashtra. One of the most technologically advanced plants in the whole of South Asia, it works as a dairy processing and packaging unit for an array of products. “D’lecta Café is going to revolutionize beverage consuming pattern in India. It will offer fresh, healthy, and convenient option to tea and coffee aficionados. D’lecta

Café houses all beverage essentials including popular flavors in tea and coffee like the green tea and masala tea besides the classic tea. In coffee we have the finest Arabica flavor to satisfy even the most discerning taste buds,” concludes Mr. Devendra Garg, Executive Director.

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Tata Global beverage bet on Coffee Pads

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ata Global

Beverages BSE 0.13 % is planning to build a larger portfolio of coffee products along with a broader push up market to boost profitability as it is betting big on coffee pods, or single-serve packs, as it plans. pod is a small plastic cup filled with ground coffee beans that a special ‘pod machine’ can turn into a hot cup of coffee said Ajoy Misra, the Tata Group firm’s managing director, and is better than existing regular whole bean or roast and ground coffee in pushing profitability. Coffee pods are the latest fad among coffee drinkers in the developed world and the fastestgrowing category within hot beverages. Tata beverages marked its entry to the segment on its own a fortnight ago, when it acquired Bronski Eleven that sells pods in Australia under the MAP brand. And this pod coffee is priced four times as much as regular coffee. Premiumisation is one of the parts where Tata Global Beverages want to move faster and go up the value chain and have an opportunity through MAP.

While the company was already present in the pods segment in the USA, it was on a royalty basis through an agreement with Green Mountain Coffee Roasters’ Keurig single serve machines for Eight O Clock Coffee. At present, the maker of Tata Tea and Tetley brands earns over 70% of its sales from tea brands while coffee business rakes in another 20% through brands like Eight Coffee business in the US is roughly $200 million, or less than 2% of the country’s retail coffee market of $13 billion. Moreover, Tata Global Beverages has limited or no presence in other top coffee markets such as Brazil, Germany, Japan and France. India and China are expected to deliver the highest growth rates. Analysts now expect Tata Global Beverages to go for more acquisitions to brew its coffee ambition. “Brazil and Russia are expected to lead coffee growth in absolute terms.


B everages & Food Processing Times - June - I - 2014

Cocoa News

Cargill Reports on sustainable Cocoa Journey and Pledges to accelerate Growth of Programme

l Ambition for a transparent global supply chain to support better incomes for farmers and a sustainable supply of cocoa and chocolate products l 115,000 cocoa farmers trained, 2,550 farmer field schools set-up and 77,000 farmers certified since the Cargill Cocoa Promise launched in 2012. Distributed 25 million seedlings to promote farm development. l Improved access to education for over 34,000 children and health care for over 25,000. Cargill has released its first global progress report on its activities to support cocoa farmers, communities and the development of a sustainable global cocoa supply chain. The report entitled “A thriving cocoa sector for generations to come” highlights the progress the company has made since its work began over a decade ago and the Cargill Cocoa Promise was launched in 2012 to align its efforts. “Our ambition is to accelerate progress towards a supply chain that is transparent, enables farmers to achieve better incomes and living standards, and delivers a sustainable supply of cocoa and chocolate products”, said Jos de Loor, president of Cargill’s cocoa and chocolate business. “We believe

educated, empowered and successful farmers are essential to meeting the challenges facing the cocoa and chocolate sector. This report shows how we are making a difference but also highlights the progress we still need to make.” The Cargill Cocoa Promise has reinforced the company’s global commitment to improving the livelihoods of farmers, their families and their communities, and to securing a long-term, sustainable supply of cocoa. The global programme is taking a local approach by using Cargill’s extensive on-the-ground sourcing network to strengthen farmer organisations and work with communities, governments and NGOs to understand local issues and make tangible, longterm differences. The Cocoa Promise is addressing key challenges in the sector including the need to increase yields and incomes for farmers; improve access to training, infrastructure and finance; improve access to education and healthcare in

communities; and regenerate farmland. The report highlights major results and achievements to date, which include: l Over 115,000 farmers trained in good agricultural practices in Côte d’Ivoire, Ghana, Cameroon, Indonesia, Brazil and Vietnam. l 2,550 Farmer Field Schools established globally to provide training and knowledge sharing locally. l 77,000 farmers and over 342,201 hectares certified through farmer cooperatives and organisations. l Establishing the Coop Academy in

Côte d’Ivoire – a unique, industry-first programme to provide cooperative leaders with knowledge and skills to grow their businesses more successfully. l U.S. $25 million of certification premiums paid to farmer cooperatives – 50 percent directly benefits farmers while remainder invested by farmer organisations in local communities. l 25.3 million seedlings distributed to support growth in cocoa production, particularly in Brazil. l Improved access to education for over 34,000 children in cocoa communities through school build activities, training teachers and providing books.

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De Loor continued; “Since we launched the Cargill Cocoa Promise, we have been focusing on delivering positive, tangible results. But in order to benefit more farmers and communities, as well as advance our ambition of a transparent supply chain, it is essential we continue to adapt our approach in each origin. The demand for cocoa is rising each year and consumers are increasingly conscious of where their food comes from and how it is produced. This means collaborating more closely with our customers, governments and partners to understand the challenges facing smallholders and measuring the real impacts of activities to ensure we continue to make a bigger difference.”


B everages & Food Processing Times - June - I - 2014

Packaging News

Recycled paper packaging will grow at a CAGR of 5% to reach $139 billion in 2018

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aper and paperboard also have the highest recycling rates worldwide (with the exception of glass in some countries). Demand for paper packaging will continue to grow, due to the manufacturing economies of China and other emerging countries. In fact, the overall market for recycled paper packaging will grow at a CAGR of 5% to reach $139 billion in 2018. Geographic forecasts In the US and Canada, paper and paperboard recovery has increased by 81% since 1990, and has reached

a recycling rate of 70% in the US and 80% in Canada. European countries have reached an average of 75% for recycling paper, with some countries like Belgium and Austria achieving almost 90% recovery. In the UK and many other countries in Western Europe the paper recycling rate is 80%. Eastern Europe and the rest of the world tend to lag behind in paper recycling, mainly due to a lack of adequate recycling infrastructure. Recovered paper accounts for 37% of the US pulp supply. The demand for paper pulp is growing rapidly in developing countries; China, India and the rest of Asia are the fastest growing users of paper per capita. The increase in the transit packaging sector in China, combined with growing consumerism, is leading to rapidly growing demand for paper packaging. Paper packaging demand has been growing at a rate of 6.5% since 2008, far higher than anywhere else in the

world. Along with this demand for paper packaging, the demand for recycled paper is also increasing. Containerboard packaging represents the largest market for recycled paper packaging. About 30% of the paper and paperboard recovered in the US is used to produce containerboard which is the material used for corrugated packaging. A large amount of recovered paperboard is exported to China, while the rest is used to produce other paper packaging such as boxboard, which includes folding boxes. In 2011 exports of recovered paper to China and other countries accounted for a huge 42% of the paper collected in the US for recycling. What’s next for paper packaging? It is estimated that the demand for recycled paper will exceed supply by 1.5 million tonnes of recycled pulp per year by 2018. The paper industry is investing in paper packaging plants in the developing world to satisfy growing demand

Bioplastics on the Rise all over the World

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ven before the current year’s success, interpack 2014 in Düsseldorf was considered the world’s largest packaging show and leading international trade fair. With record numbers, i.e. 2,700 exhibitors and 175,000 visitors, it seems that it will maintain a strong position for years to come. In addition, the trends and innovations introduced here will have a large impact on the international packaging industry in future. The area of bioplastics garnered a lot of attention not only from German experts, but also

from two thirds of the foreign audience. Green Plastics: Packaging Topic Number One The intense interest displayed by the trade fair visitors in bioplastics was not only due to the stage programmes, theme parks and panel discussions. Many visitors, especially those from non-European countries, already knew beforehand that various new inventions and developments

would be introduced to the market of sustainably produced and reusable plastic packaging in the near future. At interpack, trade visitors were given a first impression of what’s to come with the introduction of multi-layer foils that offer high flexibility for use and, in addition, are also particularly environmentally compatible. The same product line also offers completely biodegradable items whose main component is cellulose. In the area of dimensionally stable packaging, sustainable coffee capsules made of bioplastics and recycling systems for the used capsules were presented. © grocery cart chips made of bio plastics by Green Promotion / Flickr.com Recycling in India and the USA Nature conservation is playing a larger and larger role, even in countries that have not yet exhausted their potential in this regard. For instance, for three years the Gesamtverband Kunststoffverarbeitende Industrie (Association of the Plastics Processing Industry) and the ‘Röchling Foundation’ have been cooperating with the ‘Organization of Plastics Processors of India’ with regard to an economic

in these regions. In the future, paper packaging is the most obvious choice for replacing polystyrene. Many key players in the industry have already switched to or are experimenting with paper products. For example, Starbucks uses only paper cups and is actively involved in paper recycling initiatives including closed-loop systems in select locations. Further improvements in paper recycling will also help to grow the market, as recent advances have made it possible to recycle coated paper packaging along with corrugated paper. This will reduce the cost of recycling significantly, driving up the demand for recycled paper. Paper packaging in the foodservice industry One of the fastest growing markets for recycled paper is the food-service market. Although it represents a small percentage of the overall market for recycled paper (<1% of the total recycled paper market), it is expected to grow upswing of the plastics packaging industry in major industrial regions of India. The country still lacks sustainable recycling systems. A large amount of all waste is simply dumped into the ocean. The objective is to create greater transparency for the current problem areas beyond Indian borders and to solicit support from international packaging manufacturers. Despite ample resources, sustainable packaging solutions are slow to be introduced even in a country such as the United States. However, meanwhile consumers tend to demand more bioplastics and less packaging waste in the US, as well. Between 2009 and 2013, the international bioplastics industry generated a significant increase in turnover. Insiders ascribe this to technical advances as well as low market prices for untreated materials in light of rising crude oil prices. At the same time, they forecast worldwide optimisation of the infrastructure systems for composting, which are currently still severely underdeveloped. New products to be expected on the market are photochemically degradable pallets or inflatable biodegradable trash bags, for example. It remains to be seen which new developments presented at interpack will prevail on the market.

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faster than the overall demand for recycled paper packaging. With the economy improving, the food service market will start to see more growth, and that combined with increasing consumer awareness of litter and solid waste caused by increasing consumer awareness of litter and solid waste caused by discarded plates and glasses will drive the demand for recycled paper. Industry players are also getting active in this market as pressure from governments and various environmental groups keeps increasing.

Manipal builds global packaging business ‘MUPSPL’ Manipal Technologies has launched a global packaging company Manipal Utility Packaging Solutions (MUPSPL). This new entity combines Utility Printpack’s businesses and manufacturing operations in Ahmedabad with Manipal’s packaging businesses at Manipal, Chennai, Kenya and Nigeria. MUPSPL, the latest inclusion into the diversified portfolio of businesses of The Manipal Group is believed to be a game changer in the packaging business landscape and create unbeatable customer value proposition. Speaking at the launch of MUPSPL, Gautham Pai, managing director, Manipal Technologies, India’s largest print solutions organization, said, “Packaging solutions are identified as one of our high growth businesses for the future. With MUPSPL, we have built a robust foundation of a global packaging business spanning emerging markets in Asia, Africa and Middle East. Our investment in creating best-in-class capabilities to further reinforce our vision and commitment towards focused growth in the packaging business in India and globally.” Manoj Mehta, chairman, Utility Printpack said, “MUPSPL will provide resounding resource to our combined customers in India and over 40 countries worldwide with added manufacturing capacities, capabilities, geographic spread and an unparalleled range of innovative packaging solutions and technologies.” The promoter Manipal Technologies, with over seven decades of print / packaging experience, empowers MUPSPL with technological expertise, operations excellence, product innovation and value-creation for customers in India and globally. MUPSPL will provide customers a unique platform with world-class technology with multi-location production facilities and offer a larger gamut of products and services.


B everages & Food Processing Times - June - I - 2014

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B everages & Food Processing Times - June - I - 2014

Food Processing News

Maiyas raised 100 cr from Ascent Capital for Bangalore factory Expansion

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revious owners of MTR and now Maiyas, P Sadananda Maiya, chairman of Maiyas Foods & Beverages, is gearing up for a steep growth trajectory of his nearly two-year-old company. He has raised a good Rs 100 crore from Bangalorebased private equity fund, Ascent Capital. Maiyas Foods & Beverages was started by Sadananda Maiya during April, 2012, five years after he sold the iconic company he founded, MTR Foods to Norway-based Orkla Corporation for a nice sum of Rs 360 crore during April, 2007. During the past 12-18 months, he

Kashmir Food Processors’ Association welcome Health Officer SMC

has been aggressively rolling out a series of snacks, instant mixes, masalas and frozen products in

the market under the ‘Maiyas’ brand. He has been fine-tuning the entire process - right from getting that right ingredient to the texture of the food and the distribution network. Maiyas have raised Rs 100 crore from Ascent Capital and share a good rapport with Ascent Capital. Company has been in discussions with a few funds and we finally settled for Ascent Capital after long discussions on how we wanted to chart the growth of the company.

Raja Kumar, founder & CEO, Ascent Capital, who manages around $650 million across funds, said: “In Maiyas, we have partnered a proven entrepreneur who is considered a pioneer in the Indian processed food industry and ‘Maiyas’ has unique potential to emerge as a reputed brand among Indians and the Indian Diaspora.” Maiyas Food & Beverages has so far seen an investment of close to Rs 80 crore and the fresh funds will be used extensively for oiling the mean marketing machine which Maiyas in putting in place. “We entered the instant mix and masalas market in April 2012 and post that, we aggressively rolled out the snacks line of business which is proving to be a major revenue earner for the company. We intend to clock revenues of Rs 200 crore during the present financial year,” Maiya detailed.

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Amira Nature Foods appoints CFO Bruce Wacha

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ice manufacturer Amira Nature Foods has appointed Bruce Wacha as chief financial officer. Wacha will be posted in the firm’s New York office and takes up the role. His responsibilities include the management of corporate finance, accounting and audit. He has over 15 years experience in the financial industry and was most recently at Deutsche Bank advising corporate clients across the food, beverage and consumer products landscape. He spent three years as a strategic advisor to Amira. After working with the Company for the past three years, including on its October 2012 initial public offering, it’s a tremendous

opportunity for me to help them further capitalize on their future U.S. and global growth opportunities from the Company’s new office in New York. Wacha reportedly replaces Ashish Poddar who was appointed CFO in December 2012. No one at Amira Foods was available to comment on reasons for his exit when approached by just-food. In a statement announcing the appointment, Amira’s CEO and chairman Karan Chanana said: “We look forward to Bruce’s contributions as we continue to execute on our strategic growth initiatives in the U.S. and globally to extend the presence of the Amira brand in new and existing markets,” he added.

Frozen Food Market Expected to Grow by about Three Times by 2017: SMC Report

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ashmir Food Processors’ Association is happy with the new Health Officer, Srinagar Municipal Corporation – Dr Rubeena. The delegation of the food processing association guaranteed their cooperation and support in the formation and implementation of FSSAI. The delegation was informed that an awareness program will be organized at SKICC here under the aegis of Commissioner SMC and Deputy Controller Drug Kashmir. All the designated food officers and members of the association and other stakeholders will participate in the event. But the association believes that the government should also support the local entrepreneurs so that the domestic consumption in the state is met by the local production. According to the association there was an ominous need to have a state-of-the-art testing laboratory to check the food products in Kashmir.

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n the midst of rising inflation and a recessionary environment, where every industry is struggling to sustain its growth rate, the food processing industry has steadily risen to emerge as a sector of choice for investors. Rising disposable income, changing lifestyle and rapid urbanization have accelerated its progression. Currently, estimated to be worth INR 7500 Billion, the Indian food processing industry is expected to grow at a CAGR of 17% to reach INR 12,000 Billion by 2015. What is more promising is the sector’s transformation from low value processing in an unorganized segment to delivering high value, technology oriented, branded packaged products in a fast emerging organized segment. As a result of this transformation, we are witnessing a boom in

packaged food segment with new product launches, introduction of new product categories and entry of new domestic and international players.

Frozen food is one such category which has caught the attention of both processors and consumers alike. Unlike shelf stable products,

distribution of frozen products requires massive cold chain infrastructure which is limiting its market penetration. However, freezing ensures that these products are minimally processed with better retention of nutritive value and hence has a potential to become an alternative to home cooked or restaurant food. The market for Frozen foods in India has grown at double digit growth rate in last few years reaching a size of about INR 19 Billion in 2012. Although the

growth number looks impressive, it does not truly reflect the future growth potential of the industry. More than 45% of the current market is composed of export of minimally processed low value marine products, meat products, fruits and vegetables. Domestic per-capita consumption of frozen food is close to negligible and is about 50 times less than our counterparts in China. Though, the retail market for frozen food products, compared to its size in 2008 has doubled to INR 3650 million in 2012, it is still primarily driven by minimally processed vegetables. The market share of high value products such as ready meals in the consumption basket has remained constant during the last five years. Also, comparing the growth rate for different categories of packaged food reveals that frozen food has lagged behind many other high base volume categories such as snack food, ice creams, and breakfast cereals.

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B everages & Food Processing Times - June - I - 2014

Bakery News

Bakery Chain Ubiquitous Foods to double outlets from 28 to 50

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et another success story in baking business Chennaibased Ubiquitous Foods, which runs bakery chain Ovenfresh, is set to expand its operations to the high streets to target the retail consumer. The company, which has focused on outlets in IT parks and office complexes, plans to

nearly double its outlets from 28 to 50 by the year end. Studied at IIM-A Rajiv Subramanian established the company is also in early talks to raise $8-10 million (Rs 48-60 crore) in series-B which it expects to complete by December 2014. Last year it raised an undisclosed amount of funding from venture capital firm Kalaari Capital. The company has expanded from nine outlets to 28 in the past six months. Ovenfresh started in Chennai but is also present in Bangalore. It plans to have 80 outlets in these

CremFIL ULtIm

two cities. The outlets planned will be 550-1200 square feet, with the first already operational in the Madipakkam and Velachery neighborhoods of Chennai. Experts see an opportunity in the market, which is highly fragmented. “Our approach is very process oriented and that is where our innovation is. We run commissaries in Bangalore and Chennai which supply to our outlets every day. Since we own the supply chain we are able to keep the outlets small which drives down real estate cost and employ low-skilled labour but deliver fresh baked goods in very short time,” said 32-year-old Subramanian.

Popular Bakery Snacks rouse comfort and nostalgia in US Consumers

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hen US consumers want to relax during their busy everyday lives, they choose small-sized snacks which remind them of their childhood, says new report from Canadean. Consumers of bakery products look for moments of relaxation and escapism in their hectic lives and want to reward themselves with the most indulgent options. Women feel the greatest need for decadent pick-me-up treats, as balancing the demands of their work, personal, and family lives leave them feeling overstretched. Cookies are the number one choice for moments of me-time, with over a third of their consumption in the US being driven by the desire to unwind. Familiar tastes evoke happy childhood memories The report also reveals that US consumers tend to prefer tastes which remind them of their childhood. According to Catherine O’Connor, Senior Analyst at Canadean, “The relaxing nature of bakery products should be emphasized in promotional campaigns and marketing materials, as consumers PUratoS CremFIL range InCLUdeS will be drawn to products that they see as offering Cremfil Classic a comforting oasis away from the pressures of Available in Vanilla and Irish Cream everyday life.” O’Connor added, “Manufacturers should offer familiar tastes that consumers Cremfil Silk associate with happy childhood moments and Available in Orange, Mango, Strawberry, treats from their youth, such as chocolate chip cookies served with milk.” Pineapple, Lemon and Blueberry Me-time snacking is boosting on-the-go packaging As consumers prioritise convenience in their Also goes well with busy everyday lives, the demand for on-the-go Satin Creme Cake packaging is rising. Small-sized versions of popular favourites will allow consumers to enjoy moments of solo consumption. Similarly, consumers desire lightweight snack options that they can carry with them to work, providing tasty, rejuvenating breaks during the day. Tired consumers seek flavourful products that will provide energy and satiety. This is particularly apparent around breakfast time when consumers want indulgent treats to jumpstart their days.

Filling with a chocolate taste that keeps your cake softer and fresher for a longer time • Ultimately Fresh • Ultimately Delicious • Ultimately Versatile • Ultimately Healthy Cremfil Ultim has been designed for long shelflife soft bakery and patisserie goods

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For updated news everyday, logon to www.agronfoodprocessing.com Puratos Food Ingredients India Pvt. Ltd. D-222/48 & 49, TTC Industrial Area, MIDC Shirwane, Navi Mumbai-400 706, Maharashtra (INDIA) Phone: 022 61240808, Email: info@puratosindia.com, Website: www.puratos.in


B everages & Food Processing Times - June - I - 2014

Editorial

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“Give a life to your muffin by filling Cremfil Ultim” www.agronfoodprocessing.com www. timesinfomedia.com

heavily on providing healthier snacking alternatives for school children.

Vol. 7, Issue 1, June (I) 2014, Rs. 20/-

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part from being one of the most outspoken Indian women politicians we’ve seen in a long, long time, Harsimrat Kaur Badal... Recently elected as Union Cabinet Minister of Food Processing in the Modi government, the 47-yearold Member of Parliament began her tryst with politics with the 2009 general elections. After just five years, Harsimrat Kaur Badal seems to have arrived. Belonging to the powerful political family of Punjab, she has been elected in the 2014 Lok Sabha elections after defeating her husband Sukhbir Badal’s cousin Manpreet Singh Badal. Harsimrat Kaur Badal is the daughter of Punjab – a land of the best agriculture production and the richest agricultural state. She has been shown immense gratitude to the people of Punjab, as she took charge of the Ministry for Food Processing. Her main agenda as the food processing minister is to help farmers get an optimum price for their crops. A step will be welcomed heartily by the Indian farmers. The Minister firmly believes that there should be an optimum utilization of crops in the country, and has pledged to give the farmers what they deserve. “Whatever wastage takes place in between should be reduced. I have to learn about the department to put this into use,” said Kaur.

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uratos Advances Trends in Cake Freshness and Filling Technologies Puratos India introduces Cremfil Ultim, fillings that offer the bakery and patisserie industry an answer to consumer demands for indulgence, health and convenience – the three aspects that have been driving growth in snacking over recent years. This great tasting compound chocolate and nut fillings contain less than

Harsimrat Kaur Badal is also on a task to hit upon new and innovative ways to reduce the post harvest losses by facilitating efficient storage and transportation as well as finding ways to increase the shelf life of food products.

In 2012, thanks to the use of Cremfil Ultim, approximately 383 tons of fat were removed from consumers’ diets in different countries (UK, Spain, Argentina, Brazil, Greece, Turkey and Egypt).

To understand the industrial think-tank Badal also met the CII delegation led by its President Ajay Shriram along with delegation of FICCI, and a delegation of PHD Chamber led by Sharad Jaipuria along with other industry delegates. The Minister guaranteed the industry and all stakeholders that policies and schemes will be reviewed, and her government’s aim is to clear all the bottlenecks and boost growth of the farming and food processing sector. Her schema also includes, curbing inflation, mitigate fruit and vegetable losses, drive and accelerate food processing industries growth and review the role of FSSAI regarding long delays in clearing product approvals. Another major issues the union minister is highly interested includes revisiting regulatory regime, rationalization of fiscal incentives, tax concessions to mega food parks and focusing on perishables, GST, role of APMC in movement of vegetables and skill development in food processing.

10% fat and help to preserve freshness. FoodIngredientnewsAccording to the Innova Snack Revolution 2013 report, there are three key aspects that have been driving the growth in snacking launches in the last 5 years: indulgence, health and convenience. In line with these trends, Puratos has created the Cremfil Ultim fillings. These fillings – which are available in two varieties: compound chocolate (up to 25% compound chocolate), hazelnut– offer a great chocolate taste characterised by roasted and cocoa

Despite being the food bowl of the country, Punjab’s potential in food processing sector has remained untapped. The minister for food processing offers hope of finally bringing crop diversification to Punjab and preserving precious natural resources like water and soil. A vibrant food processing industry will also augment the dwindling incomes of farmers who are wary of adopting new crops due to lack of buyers and are following the wheat-paddy and wheat-cotton cycle for the past three decades. The new Cabinet minister should not lose this opportunity to help the farmers of the state. Among the various issues on which Harsimrat has spoken in her first term in Parliament have been concerns related to victims of 1984 riots and matters related to Punjab. Born in a family that traces its roots to Attar Singh Majithia, a prominent General in Maharaja Ranjit Singh’s army, Harsimrat graduated from Delhi University and pursued textile designing for three years after college. A mother of two daughters and one son, Harsimrat has also been at the forefront of an initiative ‘Nanhi Chhan’ which aims to protect the girl child. I am overall very impressed and intrigued by her initial effort to tackle the lagging issues of the food processing industry. In fact as far as I can scrutinize, she is amongst the first minister who has ever take such subterranean interest on promoting this renowned segment. I know critics and media are waiting to see whether she will put into action all the agenda undertaken by her. But with the Prime minister’s driving force of development and Kaur’s swiftness I assume the results are to be impressive. Our charming Food Minister wants to make the Indian food processing industry at par with other countries and make its impeccable presence felt globally. Alas! here is a lady with a mission, all determined to achieve her goals. I sincere hope that her plans are fully implemented and executed.

FoodIngredientnews45Adding a Cremfil Ultim filling is not only a way to add indulgence to a product but it can also be a way of rebalancing its nutritional profile. Cremfil Ultim fillings contain less than 10% fat, whilst a traditional fat-based filling contains at least 30% fat. In the case of Cremfil Ultim Hazelnut, it contains 70% less fat, 24% less sugar and 49% less calories than a traditional hazelnut fat-based filling. The results of including Cremfil Ultim fillings in baked goods can therefore have a significant impact on the nutritional profile of the goods. For example, replacing a traditional hazelnut filling by Cremfil Ultim hazelnut in a soft bun results in a fat reduction of 37%. In addition, the Cremfil Ultim bun has 27% less saturated fat. Sugars and Calories are reduced by 14% and 15% respectively. In a muffin, it is possible to achieve 11% fat reduction, 15% saturated fat reduction, 5% sugar reduction and 6% calorie reduction.

flavours. Soft chocolate centres are an emerging trend for chocolate fillings in cakes, muffins, croissants and cookies. Fillings, and in particular chocolateflavoured fillings, reinforce the indulgent perception of snacks. In some markets, up to 98% of consumers preferred sweet goods with filling. Cremfil Ultim fillings offer an answer to consumer snacking demands with the indulgent experience of soft chocolate centres. In chocolate, there is a trend polarisation amongst ‘Better For You’ products due to increased health concerns, indulgence and the “treat” image of chocolate. Industrial bakers are trying to move more towards chocolate fillings with better nutritional profiles, often as a result of pressure from governments that impose specific nutritional standards for products aimed at children. Countries such as Mexico, France, Spain, Australia, and United States are focusing

The convenience of preserved freshness FoodIngredientnews46 Cremfil Ultim fillings improve the overall freshness of soft bakery and patisserie items, thanks to the controlled water activity. Studies in buns and muffins show that Cremfil Ultim is able to extend the freshness of soft baked goods over time.

Freshness after one month with Cremfil Ultim is equal to the freshness after one week with a fat-based filling. Also, the texture of Cremfil Ultim stays soft and creamy throughout the shelf life. This was further confirmed during a consumer test, where taste and freshness of Cremfil Ultim Hazelnut were appreciated significantly more than that of a standard chocolate hazelnut filling after three months of shelf life.

For updated news everyday, logon to www.agronfoodprocessing.com


B everages & Food Processing Times - June - I - 2014

Opinion

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Can India Reform Its Agriculture?

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limate change is stressing an already struggling farm sector, but there is a way forward. Over the last decade, India’s official position in global climate negotiations has been one of opposition to agricultural mitigation. At Doha (COP18), India joined other developing countries in demanding that any talk about agriculture must be in the realm of adaptation, not mitigation. India considers the farm sector out of bounds with respect to emissions reduction, given its sensitivity and the potential implications for livelihoods. Is the concern valid? Can India achieve agricultural development and adaptation without addressing mitigation concerns? Changing Climate of Indian Agriculture Despite decades of industrial development, India remains an agrarian country. At a time of decline in many countries, the agricultural population in India rose a whopping 50 percent between 1980 and 2011. Although agriculture’s contribution to GDP has been falling, it has a far more important role in the Indian economy than its share of GDP suggests. Farming employs about half of the nation’s workforce and provides a livelihood to about twothirds of the population. Moreover, almost half of the average Indian household’s expenditure goes towards food, which is an important factor in inflation and thus the nation’s chronic poverty. Although a net exporter of agricultural products, India still depends on imports for essential items like pulses and cooking oil. Food self-sufficiency is not out of the question, yet food security at the micro level remains elusive. The agricultural sector’s ongoing performance struggles are cause for concern in terms of both food and income security as well as rural poverty eradication. As a climate change hotspot, emergent climate phenomena seem to be aggravating the agrarian distress in India. An estimated 70 percent of the country’s arable land is be prone to drought, 12 percent to floods, and eight percent to cyclones. The Fifth Assessment Report of the Intergovernmental Panel on Climate Change predicts that a temperature rise would result in a significant drop in Indian agricultural yield. Given that about 250 million Indians lack food security, the challenge is to produce enough food “sustainably” to meet the increasing demand, despite shrinking resource availability. While the sector is highly vulnerable to climate change, agricultural production is a major contributor to the problem, accounting for 17.6 percent of gross emissions in India. Add emissions related to consumption and that figure rises to 27 percent. Thus, as an economic activity,

agriculture emerges as not only less productive but also highly carbon intensive – hardly the ingredients of a sustainable scenario. Reluctance Has agriculture been given its due importance in India’s climate strategies? In keeping with its global position and trends in the developed world, India seems to be prioritizing the energy, industry and transport sectors for lowcarbon development. However, there seems to be growing recognition of agricultural mitigation opportunities in developing countries, as evident in the recent Nationally Appropriate Mitigation Actions. As part of its climate action plan, India has already set up a dedicated Mission, the National Mission for Sustainable Agriculture (NMSA), to promote “sustainable agriculture,” seeking to “transform Indian agriculture into a climate resilient production system through suitable adaptation and mitigation measures in the domain of crops and animal husbandry.” NMSA has been partly successful in identifying the challenges faced by agriculture and how they will be exacerbated in a changing climate. Yet it has failed to find innovative solutions. While aiming to promote resource-efficient technologies, it has not addressed unhealthy agricultural practices. Moreover, it seems to be targeting the big farmers, who can afford the new technologies, leaving the small and marginal farmers vulnerable. The NMSA neither clarifies how the technologies will be governed nor addresses the weak agricultural extension services. In addition, the lack of adequate credit or an insurance facility would be a barrier for wider adoption of these technologies. Finally, weak institutional and human capacity will be a key challenge for effective implementation. An obscure strategy that merely addresses a few adaptation concerns falls short of a sustainable pathway for agricultural development. Other parallel schemes targeting resource use efficiency have been similarly uninspiring. Initiatives to promote micro irrigation technologies are scattered, with limited success in only a few states. While India’s state governments are offering substantial investment subsidies, high transactional costs in accessing those subsidies give farmers little incentive to adopt new technologies. The Agricultural Demand-Side Management program, another narrowly technology-centric

approach, seeks to replace existing irrigation pumps with energy-efficient models, reducing electricity consumption by a fifth. The new pumps are apparently capable of drawing more water with the limited electricity supplied to Indian farmers. But water demand in India is much higher than what currently extractable, so improving pump efficiency is will increase water use and further deplete the groundwater table. That in turn will raise the horsepower of pumps needed to draw water from greater depths. More horsepower means more electricity consumption. A Way Forward In the coming decades, feeding a growing population will demand ingenuity and innovation, to produce more food with fewer resources in more sustainable ways. India’s obsession with grain production as a means of food security is flawed, and has led to crippling price

inflation and nutrition deficiencies. For accelerated growth and food security, policymakers need to adopt a demand-driven approach, accounting for local politicaleconomy and environmental contexts. Agriculture must transform to adapt to a changing climate, meet food demand, and reduce emission intensities per output. A climate-responsive development strategy is needed to achieve the triple wins of development, adaptation and mitigation. The major climate threat to agriculture is increased stress on already scarce resources, raising the vulnerability of agriculture dependent communities. An effective adaptation strategy would seek to boost resilience by preparing communities to deal with resource scarcity and extreme events through sustainable alternatives and resource use efficiency. Likewise, mitigation in agriculture would require improved efficiency in resource consumption so that climate change-induced stress, extreme events, and their intensity can be attenuated. In that sense, both adaptation and mitigation have the same goal, seeking to achieve sustainability in agricultural

consumption and production. How could agricultural development be converged with mitigation and adaptation actions? First, livestock is a major contributor to India’s food basket and accounts for 40 percent of agricultural emissions. Yet it gets no mention in India’s lowcarbon strategy. Productivity in the livestock subsector is highly vulnerable to temperature rises, let alone the impacts of extreme events. However, simple interventions like feed quality improvement and health and reproduction management, achievable through an improved extension service, have the potential to increase productivity, improve resilience, and slash emissions. Second, water is critical for agricultural development. The availability of irrigation water is inadequate and susceptible to climatic change, while prevailing irrigation patterns are highly inefficient and energy intensive. Improving the management of irrigation water would help. Substantial cuts in water demand could be achieved by adopting efficient irrigation technologies such as the drip and sprinkler, and much of the remaining demand could be met by extending and enhancing the surface irrigation network. Sustained rainwater harvesting and groundwater recharge initiatives, combined with better irrigation pump efficiency, could also contribute. These initiatives will raise resilience to looming water scarcity without compromising productivity, with co-benefits that include reduced energy consumption and lower methane emissions from flood irrigation. Third, modernization is crucial for development, yet some traditional practices are more efficient. Land leveling, mulching, and crop diversification are all traditional practices that reduce the need for input resources like water and fertilizer. Farmers often neglect them, partly to avoid the extra labor and partly because they don’t understand the benefits. Yet these inexpensive practices reduce the need for inputs, and also help prevent erosion, preserve soil nutrients, suppress weeds, and increase fertility. Crop residues that are mostly burnt in the field, contributing to emissions and local air pollution, can be used productively as mulch. Similarly, agroforestry as a farming practice has tremendous benefits for productivity, resource efficiency, adaptation, and carbon sequestration. More modern practices like soil fertigation and systemic rice intensification can further improve resource use

efficiency and productivity. Finally, agricultural electricity and fertilizer subsidies, though lower than global standards, have contributed to significant inefficiencies in India. Broader agricultural subsidy policies and food procurement policies must be realigned to value scarce resources, and should incentivize resourceuse efficiency and conservation in agriculture. For example, better support prices for waterefficient crops and varieties could encourage their adoption, while substituting regressive energy and fertilizer subsidies with subsidies for efficient irrigation technologies could help poorer farmers. Opportunity for the New Government The challenges are not insurmountable. Indeed, they are an opportunity for the new government to prove its commitment to faster, sustainable and inclusive growth. The National Democratic Alliance was roundly criticized for its underperformance in agriculture during its last stint in power (1998-2004). It now has a chance to do better. While the Congress-led United Progressive Alliance government did better in the past decade, it fell well short of achieving an sustainability agenda. Prime Minister Narendra Modi has an opportunity to better, giving agriculture its rightful place in India’s development policy agenda. While it may be politically infeasible and socially unacceptable to take a mitigation-first approach, the new government can plan a development-first strategy for agriculture with clear adaptation and mitigation co-benefits. The climate-smart measures discussed in this article could cut sector emissions by a quarter, based on conservative estimates, while increasing productivity and climate resilience. This is lowhanging fruit, and the government would be short-sighted to miss it. New Delhi may resist the inclusion of agricultural mitigation in global climate negotiations, but it can’t ignore the need for mitigation at home. Dr Ashwini K Swain is a Fellow at CUTS Institute for Regulation & Competition, New Delhi. He tweets @AshwiniKSwain and blogs at www.aks-reflections.net.

For updated news everyday, logon to

www.agronfoodprocessing.com


B everages & Food Processing Times - June - I - 2014

Dairy News

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Direct Milk procurement important: Rabobank

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For updated news everyday, logon to www.agronfoodprocessing.com

introduces

29 th Sept – 1st Oct, 2014

Hall 6, Bombay Convention & Exhibition Centre, Mumbai, India

Sameer Mithia–Project Director T: +91-22-61727164 M: +91-98196 15657 E: sameer.mithia@ubm.com Prasad Tendulkar–Project Manager T: +91-22-61727167 M: +91-93219 79888 E: prasad.tendulkar@ubm.com

VE R E S E R PACE S R U YO NOW!!

hrough the past five years, the organised dairy sector has seen value growth of 15 per cent a year, while processed milk products have seen growth of 20-25 per cent, according to Rabobank’s estimates. Though retail prices of dairy products have increased, this hasn’t had an impact on demand for dairy products, which is constantly on the rise, the report shows. With the increase in demand, focus on upstream linkages for milk procurement is becoming crucial, Rabobank has said in a report on the Indian dairy sector. This is attributed that as the Dairy companies are targeting smaller cities, as consumption of milk products, especially processed products such as cheese and packaged baby food, is on the rise in these regions. Rabobank’s reports says, the profitability of milk processors could rise if they also invest in procuring milk, rather than just investing on processing, as this is also a necessary aspect for these companies. Milk processors that own sourcing centres in villages (they don’t depend on intermediaries) have shown good performances. Such processors take care of cattle needs, providing them feed and health care services, which leads to better ties between the company and the farmers concerned, the report says. It also helps fetch better realization/ litre of raw milk, it added. By focusing on milk sourcing, there is scope for tier-I processors to further improve their performance. It is also critical for tier-II processors that target tier-I levels of returns to invest in procurement to secure raw milk, Rabobank said. Processors that depend on sourcing milk from intermediaries end up paying higher prices for raw milk; also, the quality of the milk might be substandard. Sourcing of good milk has become a concern for dairy players, as small and marginal farmers account for 70-80 per cent of the total milk production. These farmers have small land holdings and, therefore, smaller herds of cattle. Owing to this, providing good feed and animal care for such cattle remain challenges. A shift from the unorganized milk procurement channel to an organised one will be slow, feels Rabobank. It estimates organised milk procurement at 24 per cent of the total pie and expects this to increase to 34 per cent through the next five years. For example Sterling Agro currently procures 1.1 million litres a day from farmers directly and is set on to move towards procuring more from them, as this will not only save us costs, but also ensure better quality. Kuldeep Saluja, managing director of Sterling Agro, however, pointed out while Sterling planned to increase direct procurement, it would always procure a portion of its milk requirement (about 25 per cent) from intermediaries, as this was more a just-in-time set-up, and handy in lean seasons. Karnal Milk Foods are setting up a new plant in Uttar Pradesh that will process milk and they also plan to steadily increase their direct procurement. Shiva Mudgil, senior analyst at Rabobank. said that in 2013, skimmed milk powder exports were at a record high, which caused competition for raw milk procurement to increase between skimmed milk powder producers and liquid milk marketers. In 2013, raw milk prices saw an increase of 20-25 per cent in key milk-producing states, compared with 10-15 per cent the previous year.”


B everages & Food Processing Times - June - I - 2014

Food Ingredients News

Food Ingredients Industry comes together to establish AFIMSI

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ood news for the food ingredient market, as the food ingredients companies from all over the country have joined hands to establish “Association of Food Ingredients Manufacturers and Suppliers of India” (AFIMSI). The association will have companies involved in manufacturing and supply food ingredients and raw materials used in the food and beverage processing. The manufacturers and importers of food ingredients have been facing issues related to imports and product approval. With constant harassment and no extended help from the government on their pleas and import related issues, ingredients manufacturers came together to form FIMSAI as they did not have any body to represent them and their thoughts nationally. Dhiren Kanwar, Managing Director of Puratos India, Prakash Sanghvi, Director of Delta Nutritives, Chetan Purohit, Operations Manager at Sensient India and Firoz H Naqvi renowned Journalist in food industry have been elected as President, Vice President, Treasurer and Secretary respectively. In the recent times national dailies have been publishing reports about the shipments mounding at the ports of the country. There are hundreds of containers lined to get cleared on the Indian ports such as Mumbai and Chennai. Importers in their individual capacities have been approaching the FSSAI for the last couple of months but there is no proper hearing from the authority that runs under Ministry of Health, government of India.

Dhiren Kanwar told Media, “Food safety and standards act 2006 (FSSA) by government of India was introduced to protect the consumers rights to provide them good quality food and better traceability. Implementation of this act and policy has been a challenging task for FSSAI but it has managed to win at many fronts like labelling, packaging, handling and adulteration up to some extent. On the other hand the food ingredients segment has been adversely affected by their dictatorial policies.” He also added, “Food processors have had high hopes from the new act of FSSAI, and under this the entire chain from raw material supplier to processor to a seller all needs to have certificate of food safety. This is very important as safety of food is essential and would help to track the record of a particular food pack if it is below the required standard. Hygiene standards also improved in the food and beverages industry with the implementation of this law.” Dhiren said, “As soon as FSSAI started its reach to ports of the country importers started feeling the pinch. Earlier rules for imports of edible things were very flexible. But suddenly FSSA changed the entire process which became difficult to follow for food ingredients importers. These companies imports raw materials such as cocoa powder, emulsifiers, stabilizers, starch and important ingredients and additives like colors, flavors, vitamins, enzymes, etc. hence making them vulnerable towards the act.” Prakash Sanghvi said, “The FSSAI act hit badly on the imports of these vital ingredients thereby having negative impact on food processors, hotels, manufacturers and health food manufacturers. The present status is that if a container of food ingredient or raw material comes, one has to face a number of hurdles to

get the clearance done. These hurdles are not of quality control but of FSSAI’s attitude towards the imports of food ingredients, lengthy procedure for sampling, labelling, expenditure on sampling of the same product every time along with other technical issues.” If a product is approved by USA, Europe and Japan then why do importers in India face such calamity? All this problems faced by the food ingredient community is only because when FSSAI act was been formed they did not have any type of representative to advocate their part, said Firoz H Naqvi The demands of FIMSAI aren’t many but are definitely valid; FSSAI should empanel two advisors on its advisory board from FIMSAI as they need to relook at the FSSA and labelling law for the importers of food ingredients. They also need to reduce the sampling fee and a there is important need to create friendlier environment between FSSAI officials and ingredients manufacturers and suppliers at the ports. Also the product approval will be a time bound exercise, where there is dispute of interpretation on labelling, penalty should be levied and labelling be rectified in India, letter of guarantee must be accepted on the same lines as Drug Authority and goods released for storage with importers, one time waiver may be granted for all labelling discrepancies other than date of manufacture once the product approval is given to a company for imports of a particular product the other importer should not be made to get the same product approved. Members of FIMSAI make the stand that this not a fight with FSSAI but to help them to understand the issues faced by this segment of the food industry and they also have plans to educate food industry to understand latest trends in the global arena and promote healthy environment

within the food processing industry for the usage of food ingredients and raw materials.

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Companies who are willing to join this association can send email FIMSAIndia@gmail.com

DuPont First Ingredient Company Issued Probiotic Health Claim in Europe DuPont™ Danisco® Bifidobacterium lactis HN019™ approved for use in Switzerland

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uPont is the first ingredient company to receive a probiotic health claim in Europe, further reinforcing the strength of science behind its probiotics. In close collaboration with a major Swiss grocer, DuPont Nutrition & Health recently received approval from Switzerland’s Federal Food Safety and Veterinary Office (FSVO) to market Danisco® HOWARU® Bifidobacterium lactis HN019™ probioticas supporting digestion by reducing transit time. “DuPont Nutrition & Health applauds the Swiss authorities for approving a structure function claim on scientifically backed BifidobacteriumlactisHN019™,” said Fabienne Saadane-Oaks, vice president Health and Protection, DuPont Nutrition & Health. “Despite the regulatory challenges in Europe, DuPont continues to deliver scientifically proven data on the efficacy of our probiotics. This approval validates the strong evidence we have on the link between digestive health and probiotics – support for an important milestone that we hope prompts other countries to follow suit. Digestive comfort is an important benefit for consumers globally, and this approval creates new opportunities for food, beverage and dietary supplement marketers to promote this benefit to consumers.” Improving Digestive Health Regularity is an important benefit for consumers. The approved claim will provide confidence on the benefits of HN019™. DuPont will be filing dossiers in other European countries, as well. Probiotics are a fast growing

business for DuPont globally, in food, beverages and dietary supplements. In addition to its HOWARU® range, which includes the HOWARU® Protect and HOWARU® Restore products, DuPont has a wide range of other probiotic strains in its portfolio. Probiotics are available for immune and digestive health. DuPont has over 40 years of experience in probiotics, with research led by some the world’s leading scientists. More than 70 clinical studies have included DuPont probiotic strains. DuPont Nutrition & Health has more than 20 research and development facilities around the world. The combined resources within DuPont Nutrition & Health help manufacturers create products with a healthier profile that actively promote good health to address consumer needs and emerging health trends. The company’s capabilities are applied with a focus on the specific needs of key industry segments, including bakery, beverages, bars and snacks, dairy, meat, ready meals, pediatric nutrition and dietary supplements. DuPont Nutrition & Health addresses the world’s challenges in food by offering a wide range of sustainable, bio-based ingredients and advanced molecular diagnostic solutions to provide safer, healthier and more nutritious food. Through close collaboration with its customers, DuPont combines knowledge and experience with a passion for innovation to deliver unparalleled customer value to the marketplace. More information is available at www.food.dupont. com DuPont (NYSE: DD) has been bringing world-class 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


B everages & Food Processing Times - June - I - 2014

Fruit & Veg News trader at APMC market said. “Earlier we used to sell our produce for anything between R30 per kg in the wholesale market. But after the ban, we are getting only half the money or less than that,” said a farmer at the APMC market. In Mumbai, the loss due to the ban

Chilli gives Tears to Exporter, Saudis rejects Indian Chilli

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audi Arabia bans Indian Chilli due to the presence of a pesticide residue. The country ships substantial quantities of chilli.Saudi Arabia refused to accept shipment of over six tonnes of imported chillies from India, prices of the spicy produce have spiralled downwards

at the Agriculture Produce Market Committee (APMC) in Vashi. Saudi Arabia is the fifth-largest importer of fresh vegetables from India. “The agents in Saudi Arabia found pesticide levels exceeding the prescribed level in the consignment that was shipped from the APMC

market. The pesticide percentage level was 0.1 to 1.0, surpassing the prescribed level of 0.5 per cent,” an export trader at APMC said. Already reeling from the temporary ban imposed by the European Union (EU) on export of four vegetables and Alphonso mangoes in May, the latest ban is likely to hit exporters and farmers. “Approximately 300 tonnes of green chillies arrive at APMC market daily. Of this, about 50 tonnes are distributed to local markets while the remaining is exported. Now that the ban has been imposed, prices are bound to fall sharply, affecting our incomes,” a green chilli

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is estimated to be around R30 lakh per day. In addition, traders revealed that ban would also effect the employment of 500 workers who used to help in loading the chillies into trucks.

Some good news from New Zealand for Mango Exports

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delegation visited from New Zealand to India last week to inspect irradiation facilities in Maharashtra is expected to boost mango exports to the country. Senior officials of the Agricultural Processed Food Products Export Development Authority (Apeda), who accompanied the delegation, said exports to NZ could increase by 60% this year. “The delegation was shown vapour heat treatment ( VHT) facilities in Mumbai and another private facility set up by an exporter Namdhari Exports and the team was pretty satisfied,” Dr Sudhanshu, DGM, regional head (West) Apeda, told FE.

Around 30 consignments have already been sent to NZ and by July 15, we expect larger numbers, he said. Currently, India has only one irradiation unit in Maharashtra with a processing capacity of 1015 MT a day. Indian exporters who wish to export mangoes to NZ have to get the fruit treated at these facilities. Irradiation has as gained significance in light of the ban imposed by the European Union on the import of Indian mangoes. TheEU cited “significant shortcomings in the phytosanitary certification system of such products exported to the EU”. According to Sudhanshu, biggest chunk of the fruit’s export is to West Asia and that the EU accounts for only a small percentage of it. “Almost 60% of export of Indian mangoes is to West Asia, followed by Southeast Asia, Canada, New Zealand and the US.”


B everages & Food Processing Times - June - I - 2014

Packaging News

Sensational Atmosphere at interpack 2014-Visitor number “cracks” the 175,000 mark

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nterpack 2014 was characterised by an outstanding atmosphere prevailing amongst the approx. 2,700 exhibitors and 175,000 visitors in the 19 halls of the completely booked Düsseldorf Exhibition Centre. The signs for this were already apparent at a very early stage of the world’s most important trade fair for the packaging sector and its associated process industries. The exhibitors at interpack 2014 met with numerous high-ranking visitors from all over the world already from the start of the trade fair. Many companies experienced such a rush that their stands reached their capacity limits several times. Visitor interest and qualification as well as their willingness to invest is said to have been clearly higher yet again than at the already

excellent previous event. A great many exhibitors rated the concrete business deals and sales concluded – part of which were absolutely spontaneous – as particularly positive. Commenting on this, Friedbert Klefenz, President of the interpack Exhibitors’ Advisory Board 2014 and President of Bosch Packaging Technology, said: “We are very satisfied with the quantity and quality of visitors at our stand. The interest taken in our technologies that make a vital contribution to global health and nutrition was enormous. We are pleased with the high number of leads produced, including many top executives and potential new customers. Similar comments came from other exhibitors. We were equally thrilled by the high number of international visitors

and exhibitors – some 75% of the exhibiting enterprises were headquartered outside Germany. With this interpack has confirmed its reputation as the world’s leading trade fair for the packaging sector.” “interpack has provided impressive proof of its leading international role yet again this year. This success confirms our fundamental philosophy of addressing the international industries in their respective markets in a very targeted manner – already in the run-up to the event thereby bringing them to their most important event in Düsseldorf every three years”, explained Werner Matthias Dornscheidt, President & CEO of Messe Düsseldorf. Boasting a percentage of foreign visitors of as much as 66%, interpack 2014 has not only set a new record for itself but also a top rating across all Messe Düsseldorf events. Visitors from 120 nations in total travelled to Düsseldorf. The dominating themes at interpack 2014 were resource efficiency for plant and machinery as well as for packaging material usage, quality and safety to guarantee perfect and counterfeit-proof finished products – especially in such touchy segments as Food/ Beverage and Pharmaceuticals – as well as diversity and flexibility

PacXpert™ - The flexible Alternative to Jerry Cans

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erry cans are extremely practical for transporting both solid substances and liquids. They are stackable, suitable for Euro pallets and most of the time even made of food-compatible plastics. The only drawback: after use they could not be stored or disposed in a space-saving manner. That is until a new development from the Dow Chemical Company. At interpack 2014 the company presented this invention originally developed in the US to the public for the first time. The first licensee for the region of Europe is the family-run business OKleiner from Switzerland. Target groups for this sophisticated packaging solution currently include

upstream industries as well as cash-and carry markets. PacXpertTM can hold between 2 and 20 litres of liquid/dry ingredients. However, the application does not yet allow for any pasteurised contents. © Melanie Streich at interpack 2014 Foldable Jerry Can for Space-Saving Transport The pouch has many applications. It can be used for both food and non-food goods and is ideal for stacking. According to current packaging tests run by the Technology Centre for Load & Transport Securing “DUO LAB” in Thuringia, the flexible jerry cans when wrapped with stretch film can even be transported on pallets without any further secondary packaging. The possible filling volume varies from product to product and currently ranges from two to 20 litres. Thanks to an integral handle the foldable jerry can is very easy to empty, can be re-closed with screw cap when not emptied 100% and then only takes up as much room as the remaining quantity it contains.

The key advantages of these cans over classic, rigid plastic jerry cans become especially visible when transporting the empty pouches. On the European market up to 50 billion jerry cans are transported empty while taking up the same storage space as filled containers. By contrast, the PacXpert™ requires ten times less space for transport thereby saving both the budget and our climate. Furthermore, it cuts the disposal costs since less material needs to be disposed off than with comparable rigid packaging. The Dow Chemical Company is currently talking to brand owners like Nestle, Mars, Danone and Unilever about a possible market launch by the end of this year. The packaging specialist OKleiner has slotted this smart packaging for release in September 2014.

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for an ever wider range and shorter product cycles. These themes were addressed by a particularly high number of innovations in the halls. However, interpack underscores its importance not only with the sheer multitude of innovations and breadth of its exhibitor ranges but also with especially innovative themes, adds Bernd Jablonowski, Director of interpack & SAVE FOOD: “For a leading international trade fair it is not enough just to rent out exhibition space and offer perfect organisation. Trend themes must be identified, anchored in the concept and finally also driven in a consistent manner. This is the only way to secure thematic leadership in an industry. We have succeeded in doing this very well once again this year. The concepts of both Innovationparc Packaging and the METAL PACKAGING PLAZA were right on target with the target groups.” Successful second SAVE FOOD Congress SAVE FOOD proved a particularly attention-grabbing theme at interpack. The initiative of the same name combats food losses and waste and involves such partners as the Food and Agriculture Organisation of United Nations (FAO) and the United Nations Environmental Programme (UNEP) as well as over 110 members from the industry. The SAVE FOOD Congress already started the day before the trade fair. On the first of its two themed days it addressed non-profit organisations, which

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shed some light on the problems from political and social angles. The second half of the event dealt with solutions and Best Practice presented by enterprises. Even more impressively than at the kick-off event three years ago the Congress showed how the problem of global food losses and waste can be fought across the entire value chain. Contributions came from prominent guests and participants such as FAO and UNEP representatives, the Senegalese Minister and musician Youssou N’Dour and the former German Federal Minister Renate Künast in addition to the numerous lectures and panel discussions that identified practical approaches. In excess of a total of 450 delegates participated in the Congress. When the event drew to a close all parties involved agreed that the objectives of SAVE FOOD can only be achieved with concerted action and pooled expertise as well as the competence of all stakeholders – a fundamental intention of the Initiative. For the entire duration of interpack 2014 Innovationparc Packaging presented solutions and ideas for fighting food losses and waste. In spring 2017 the motto for experts from throughout the world will once again read “Welcome Home” to Düsseldorf. The exact dates will be announced at a later stage.

Green Sustainable Packaging is Beneficial to The Society

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atural causes and campaigns are currently becoming popular and corporations are finally watching the needs of the market for more eco friendly products. Just like other product features for example effectiveness and security, there likewise should be expectations arranged for items that are green. The affect consumer products’ environment is the authentic measure of friendliness and environmental consciousness. It may appear to be a motto however it will be of being environmentally friendly the true standard. The concern is just why are sustainable that is green sustainable packaging advantageous to costeffective and the environment? First, there is less influence during production. This implies biodegradable materials are used, less materials are utilized, more

sustainable, recycled, or less electricity is eaten to assemble these products, and more importantly, you will find waste and byproducts created and needs to be disposed. Another reward is the fact that logistics that is smart, green sustainable packing, eco friendly printing, shipment dramatically lowers the quantity of fuel employed. Most of the time, more power is taken up by supplying the product for the customeris home than production it. One of the finest reasons for having natural goods is the fact that they are biodegradable. Landfill wastes have increased drastically in the past decades and it’s about time we do something positive about it. Recycling is one method to reduce landfill wastes. Aside from applying green sustainable packaging, environment friendly services can be utilized by us. You also don’t have your personal cleansing company and if a business is owned by you, retain a green service and enjoy all the benefits from it. Besides being ecofriendly, it is not bad for you along with your employees’ health simply because they would be employing natural goods.


B everages & Food Processing Times - June - I - 2014

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TM

TM


B everages & Food Processing Times - June - I - 2014

Agro Processing

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India set be a price setter for Punjab to Store Wheat in some products: FMC scientific manner-FCI

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ndia should be a price setter for globally refreshable commodities, especially in which India is a major producer stated FMC Chairman Ramesh Abhishek, and for this a vibrant future market, with wider participation is required. The Forward Markets Commission (FMC) aims to move towards making India a price setter in products where it has been an influential producer, with the expansion of the derivatives market for agricultural commodities. Markets abroad are taking note of movements in agri-commodities such as cotton and soybean, since in these have been permitted in the evening session, too.

According to data provided by the National Commodity and Derivatives Exchange (NCDEX), the leading one in agri products, the prices of groundnut oil - which is not traded in the futures market - has in the past three years seen much wider price fluctuation than that in refined soya oil, which also generates the highest volume on NCDEX. Things have begun improving, with the introduction of staggered delivery for most agri commodity futures, margin relaxations for genuine hedgers, improvement in monitoring and surveillance, giving exchanges the authority to check the source of funds where necessary and no contracts in the lean season. This has resulted in some companies starting to show interest in agri hedging. The corporate sector has huge

All India Vegetable Growers Association wants cluster approach for export purchases

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ll India Vegetable Growers Association (AIVGA) has insisted on the Agriculture and Processed Food Products Export Development Authority (APEDA) not to allow exporters to purchase products from the open market. The is because of the ban imposed by the European Union (EU) on import of mangoes, eggplant, taro plant, bitter gourd and snake gourd from India. AIVGA urge that a cluster approach to be made mandatory and exporters be told to begin work on orders five months in advance through farmer clusters

— so that they can contain chemical and pesticide residues in vegetables. The banned commodities are less than 5% of the fresh fruit and vegetables imported into the EU from India and therefore there is no major impact. The existing method of allowing exporters to purchase commodities from open markets and grade and pack them at the last moment should be stopped. It is the lack of planning the exporter end up purchasing products with chemical residues. Random sampling or checks conducted by EU officials result in embarrassment. Shriram Gadhave, president, AIVGA, alleged that more seriously, these exporters end up managing the certification from pack-houses, which is not a good sign.

exposure to commodity price risk and the shallow market was not allowing them to hedge on Indian futures markets. This is changing and Ruchi Soya, the Adanis, some other leading companies and multinational trading ones have stated hedging their exposure, albeit on a smaller scale, said an exchange official. According to Sameer Shah, managing director, NCDEX, “Synchronization between the spot market and futures market has improved significantly, especially in commodities having good liquidity and this has been possible because the spot market has started taking signals from the futures market. Government should state its support for futures trading and that FMC, the market regulator, will be strengthened with requisite legal amendments added Mr Shah. A finance ministry committee has already recommended allowing banks and foreign players to hedge their risk on the futures platform. Once that happens, the market will be more vibrant and meaningful.

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fter wasting millions of tonnes of wheat and other food grains FCI has started thinking scientifically. The freshly harvested wheat in Punjab is to be stored in a scientific manner this year on the back of creation of new storage capacities in the state. “This year, we will be storing entire wheat crop in scientific manner as we have created sufficient storage capacity in the state for storing purpose,” a senior official of Food Corporation of India (FCI) told. After exhausting all available resources, a sizeable quantity of wheat ranging between 20 to 35 lakh tonne was being stored every year at places including rice mills, mandi yards and open space in the state which was vulnerable to vagaries of

Food Grain stock to cross 70 mt in June, still lower than Last Year

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he grain stocks with government agencies, including the Food Corporation of India (FC) and state bodies, is set to cross 70 million tonne at the start of next month. Usually, the stocks would be at the highest level during this time of the year. This year’s stocks would, however, be lower than 77 million tonne reported in June 2013. Grain stocks in the middle of this month was reported at 62.2 million tonne, consisting of 41.8 million tonne of wheat and 20.3 million tonne of rice. Besides about 8 million tonne of unprocessed rice is with millers or agencies. However, the grain stocks would be double than strategic reserve and buffer stocks norms. As per July 1 buffer stocks and strategic reserve norms, the government

agencies should have grain stocks of close to 32 million tonne. Meanwhile, a food ministry official said despite high stock, the grain stored under temporary storage facility like covered and plinth (CAP) have declined to only about 5.5 lakh tonne from 1.5 million tonne stored in CAP a year back. Foodgrain can’t be stored for more than six months under CAP. Due to the creation of additional storage facilities through Private Entrepreneur Guarantee (PEG)

MP Registers record Agri growth at 24.99% in 2013-14

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adhya Pradesh has registered a record growth at 24.99% in FY 2013-14 in the agriculture sector, inclusive of animal husbandry. In 2012-13 the agriculture growth rate was 20.16% and 19.85% in 2011-12 in the state. In an official report released, the advance figures for 2013-

14 released by Central Statistical Organization (CSO), the state has clocked a 24.99% agriculture growth rate including in animal husbandry sector. Madhya Pradesh has created history by posting the highest ever agricultural growth rate according to the release said. Because of continuous record growth in the agriculture sector,

weather. Over 90,000 tonnes of wheat is estimated to have got damaged in Punjab in the last six years or so due to poor storing system. Punjab has added 43 lakh tonne of new storage capacities under Private Entrepreneurs Guarantee scheme in last 2 years as against 51 lakh tonne of capacity allocated by Centre. With the creation of new capacities, the covered capacity for storing foodgrain in Punjab has reached 145 lakh tonne while the state also has 120 tonne of Covered and Plinths (CAP). “We are quite comfortable this year as far as storing wheat is concerned. We will be left with about 155 lakh tonne wheat including old stock by end of May which will be stored in scientific manner,” he said. Punjab, which is known as bread basket of country, is eyeing 115 lakh tonne of wheat procurement during Rabi Marketing season 2014-15.

the state has been bestowed with the prestigious “Krishi Karman Award” by the government of India for the last two years in a row. The wheat production was 73.27 lakh tons in 2004-05, which increased to 193 lakh tons in 201314. Similarly, soybean production has increased from 37.60 lakh tons to 50 lakh tons during the period.

Rice production increased from 13.09 lakh tons in 2004-05 to 69.50 lakh tons now. The area under these crops was 104.80 lakh hectares which has risen to 140.15 lakh tons now, representing a 34% increase, according to the release.

scheme, FCI at present has covered storage facilities to the tune of close to 38 million tonne against only 35 million tonne available a year back. Out of the total grain stocks at present, close to 32 million tonne of grain is with the FCI while the state agencies, including Pungrain (Punjab), Hafed (Haryana), MP Civil Supplies Corporation, are holding stocks of more than 30.3 million tonne.

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B everages & Food Processing Times - June - I - 2014

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14-16 Nov 2014 Bombay Exhibition Centre

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Exhibitors Profile

Exhibitors Profile

• Process Techhnology Automation • Packaging Technlogy • Automation • Processing Control & Regulation Technology • Food Retailling • Food Safety & Quality Mangement • Environment Technology, Biotechnology • Conveying Transport & Storage Installations • Dispensing & Vending Machines • Food Service

• Manufacturers/Importers and wholesalers of Food & Beverages • Dairy Products • Bread and Bakery • Oil & Fats • Frozen Food / Chilled Food • Fine Food / Gourmet • Fish & Sea Food / Meat & Poultry • Trade Agencies • Nutraceuticals Products / Organic Foods • Functional Food • Ingredients, Colours & Additives

Visitor Profile • CEO’s & Top Executives from Food & Beverage Industry • Sr. Executives from Production, Quality Control, Maintenance • Purchase Departments • Professionals from R & D Institution, Supply Chain Distributors • F & B Managers etc. • Top officials from Regulatory Agencies of Central & State Governments • Food & Beverage Consultants • Hypermarkets / Supermarkets • Grocery Stores / Convenience • Stores / Retailers • Departmental Stores • Food and Drink Importers / Distributors / Wholesalers • Foodservices and Hospitality Counsulting • Hotels / Resorts Management • Foodservice Government, Military, School, Hospital • Foodservice - Industrial • Bakeries / Confectionaries

For further details contact Amolsingh Pardeshi

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amol.pardeshi@cii.in

Saurabh Rajurkar

saurabh.rajurar@cii.in

Confederation of Indian Industry (WR) 105 Kakad Chambers, 132 Dr Annie Besant Road, Worli, Mumbai 400 018. Phone : +91 22 24931790 • Fax : +91 22 24939463 / 24945831 • Web: www.cii.in


B everages & Food Processing Times - June - I - 2014

Sea Food News

Exports of Marine Products by India have made record high of US$ 5 billion

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fter ripening best season for seafood now exports of marine products by India have reached an all-time high of US$ 5 billion. “During the financial year 201314, exports of marine products reached US$ 5007.70 million. Marine product exports crossed all previous records in quantity and US$ terms,” an official spokesman said. He said exports aggregated to

9,83,756 MT valued at US$ 5,007.70 million. Compared to the previous year, seafood exports recorded a growth of 5.98 % in quantity and 42.6 % growth in US$ earnings respectively. “The unit value realization also reached to record high from USD/Kg 3.78 during 2012-13 to USD/Kg 5.09 during 2013-14 and recorded growth of 34.55%. The increased production of L.

Vannamei shrimp has helped to achieve higher exports,” the spokesman said. Frozen shrimp continued to be the major export value item accounting for a share of 64.12 per cent of the total USD earnings. Shrimp exports during the period increased by 31.85 per cent, 99.54 per cent and 78.06 per cent in quantity, rupee value and USD value respectively. There was all time high growth in unit value

realisation of frozen shrimp at 35.05 per cent. The overall export of shrimp during 2013-14 stood at 3.01 lakh tonnes worth USD 3.2 billion. The US is the largest market (95,927 tonnes) for frozen shrimps exports in quantity terms followed by European Union (73,487 tonnes), South East Asia (52,533

19

tonnes) and Japan (28,719 tonnes). The contribution of cultured shrimp to the total shrimp export is 73.31 per cent in terms of USD. The export of cultured shrimp has shown tremendous growth of 36.71 per cent in quantity and 92.29 per cent in dollar terms. The export of Vannamei has shown tremendous growth to 1,75,071 tonnes from 91,171 tonnes and USD 2 billion from 731.01 million compared to 2012-13. The export of Vannamei shrimp recorded a growth of 92.03 per cent in quantity and 172.81 per cent in dollar terms.


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Beverages & Food Processing Times June 2014