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the Ministry and Assocham, "However, MoFPI Kacker said the food processing was keen to start a industry has consistently process of self-registered growth rate faster than regulation by that registered by agricultural industry. Towards sector. this end, MoFPI "Thus the industry was was in touch with consistently adding value to the apex industry agriculture sector," he said. organisations and On National Mission on Food trying to develop a Processing, Kacker said the system of self-mission was launched with the certification by specific purpose of enhancing food processing involvement of states in efforts to units. Quality further the growth of the food Council of India processing industry. has been tasked As a part of its promotional efforts with drawing up a ood processing sector has to push further the food processing roadmap for this emerged as the fastest sector in potential states across purpose," he said.growing sub-sector of the F India, Kacker said the Ministry of Initially, this will manufacturing sector during last Food Processing Industries has run parallel to financial year, a top official said.already finalised four schemes on statutory Food processing units, being set technology upgradation and cold certification up in Mega Food Parks, would be chains for non-horticultural crops, required to be provided with entire basic among others. obtained by units infrastructural facilities like Emphasising the need to maintain but eventually warehouses, storage facilities, appropriate quality standards in there could be testing labs and fruit-ripening the food industry, Kacker said a blending of chambers, Rakesh Kacker, newly created body, Food Safety statutory and Secretary, Ministry of Food and Standards Authority, is voluntary Processing Industries, said.playing the regulatory role in this certification, After inaugurating Mega Food regard. Kacker said.Parks Summit here, organised by

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News 2 everages & Food Processing Times- -I-2012B Dec

Micro ingredient solution for Indian poultry industry

BCA, a division of AB Agri, the Agricultural Group of Associated British Foods plc. (ABF), is participated at Poultry India exhibition,held recently in Hyderabad. Poultry A

India was an ideal platform to introduce ABCA to the Indian market. The company is dedicated to providing the animal nutrition and

livestock industry with a professional service in India and other Asian countries.

The livestock industry in India is the second largest contributor to gross domestic product (GDP),

after agriculture, and accounts for 9 percent of the total GDP. The objective of ABCA is to offer poultry and feed producers in India a new range of innovative, reliable and sustainable feed ingredients that improve poultry performance through better nutrition and health, leading to improved return on investment. Progressive research and development of innovative new products are all central to uncovering enhanced nutrient utilisation by farm animals. Through sharing the technical resources of nutrition and management advice, ABCA works together with poultry companies to produce safe, healthy meat and eggs in a cost-effective and sustainable manner.ABCA integrates with its' parent company ABF and acts as an innovator in marketing new micro feed ingredients and sustainable feed additives. AB Agri has interests across the food - as a producer and seller of animal feed and ingredients. Announcing at the company's official launch in India, Mr David Yiend, Chief Executive, AB Agri said “AB Agri is a balanced diversified business operating in many parts of the food chain from plough to plate supplying its products across 70 countries. ABCA's entry into the Indian market is another great milestone for us providing feed manufacturers and livestock farmers with safe and sustainable solutions to enhance animal performance and produce safe and high quality food products”. Mr James Charteris-Hough, Managing Director, ABCA emphasised that India is an important market to the Company and added that, “ABCA aspires to become a preferred choice in the area of innovative yeast derivative products for Indian animal nutrition and health industries”. At Poultry India 2012, organised by the Indian Poultry Equipment Manufacturers Association, ABCA showcased its innovative animal nutrition product range together with nutritional advice on flock management. Romila iyer, Business Manager of South Asia said, “Poultry India offers a great platform for the companies to interact and showcase their products and services. At ABCA we plan to establish well-balanced portfolio of innovative products/solution and introducing value added products to animal production and feed-market, coupled with our resolute focus on our customer's needs, will be the cornerstone for our marketing strategy”.

3 everages & Food Processing Times- -I-2012B Dec

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everages & Food Processing Times- -I-2012B Dec 4Food Processing News

Bry Air

Rabobank Report: "Raj-accino"- The Rise Of Coffee Culture In Indiaabobank has published a be significant, these coffee shops sized cities, and a high population strong competition for acquiring foreseeable future.new research report on the have added more visibility to the density with its associated prime premises. Furthermore, The Rabobank report on the Rrise of the coffee culture coffee culture. The first specialist potential for expansion of the coffee shops must be big enough growing Indian coffee culture is

inIndia, due to the efforts of a few coffee shop by Cafe Coffee Day coffee shop network. to accommodate a large number of available to media upon request.specialist coffee chains and instant opened up in 1996, and the people, with around 95 percent of "The impressive growth expected Rabobank Group is a global coffee players. company has since grown to a consumers in India preferring to of specialist coffee chains in India financial services leader providing

market leading position, with drink on-site rather than to take In a new report titled "Raj-accino," offers numerous opportunities for wholesale and retail banking, asset 1,350 coffee shops spread across away (compared to around 60 per Rabobank's Food & Agribusiness both local and international management, leasing, real estate India. At present, there are around cent in the U.S.). Competition for Research and Advisory group says players, provided that they can services, and renewable energy 2,100 specialist coffee shops in industry manpower is likely to that coffee drinking has spread overcome inherent obstacles," says project financing. Founded over a India, and given that there are continue to be a challenge due to across the country and Nitin Kalani, Rabobank beverage century ago, Rabobank is one of multiple international coffee shop high rates of staff attrition. On top consumption has doubled. analyst and author of the report. the largest banks in the world, with chains trying to expand their base of this, the sourcing of other Specialist coffee shop chains, Sourcing coffee beans is not the nearly $1 trillion in assets and in this important market, beverages, food and which have established themselves key barrier for specialist coffee operations in more than 40 consumers are likely to have even merchandising – all an essential as a 'hangout' for urban youth, are chains, with coffee beans countries. In North America, more options within the next three part of the coffee shop experience projected to reach 4,000 in accounting for an insignificant Rabobank is a premier bank to the years. – continues to be a problem as numbers by 2015 (21% CAGR). proportion of the total cost of a food, beverage and agribusiness

players struggle to establish This growth is a result of favorable For a burgeoning segment of the cup of coffee. For example, the industry. Rabobank's Food & quality, reliable supplier demographics, rising income Indian population, coffee chains cost of coffee beans in a Agribusiness Research and relationships.levels, rise of mid-sized cities and are also offering a new cappuccino is about 8 percent of Advisory team is comprised of

high population density. High real snacking/leisure experience. These India remains a tea drinking the sale price. To be successful, more than 80 analysts around the estate costs, manpower attrition coffee chains offer an experience country, with sales of the operational efficiency (e.g., world who provide expert analysis, and difficulties in managing the similar to that in developed traditional beverage still managing rent and labor costs) is insight and counsel to Rabobank supply chain will continue to be markets. The opportunities for outperforming that of coffee. With more important than focusing clients about trends, issues and the key challenges. coffee chain growth arise from the growth in coffee consumption solely on raw material costs. developments in all sectors of

favorable demographics – low per outpacing that of tea however, Although specialist coffee chains' agriculture. www.Rabobank.com Real estate overheads are a major capita consumption and increasing coffee culture is expected to contribution to India's total coffee concern, with coffee chains facing income levels, the rise of mid- continue to flourish for the consumption by volume may not

Mondelez to invest in cocoa production in India, Africa

ondelez International, which was recently formed following the separation of the Mconfectionary and grocery businesses of

American food major Kraft, has announced that it will invest $400 million (or Rs 2,200 crore) into cocoa production in India, Ghana and the Dominican Republican over the next ten years in a move aimed at securing supplies.

The company, which has brands such as Cadbury and Oreo, will work closely with cocoa producers in these countries as well in the Ivory Coast, which is the largest cocoa-producing country in the world. The development comes at a time when Mondelez is looking to increase revenues from emerging markets. The company already derives a sizeable chunk of its $35 billion revenues from markets outside the US. But faced with the prospect of slow growth in developed markets, it has been turning its attention to markets such as India, China, Brazil and Russia in the last few years. During her first official visit to India last year, Kraft's global chairperson, Irene Rosenfeld, who initiated the split between the confectionary and grocery businesses and has been put in charge of Mondelez, had said that she was keen to see the company in the top five list of food majors in the country. India currently remains small when compared to Brazil, Russia and China for Mondelez.But the business in India has been growing at over 25 to 30% per annum over the last few years. The company closed the 2011 calendar year with sales of Rs 3,359 crore - a growth of 35% over the previous year. The company is likely to retain this momentum in the current calendar year too despite a slowdown in discretionary food spends.This has partly to do with the action initiated by the company on the brand front. Mondelez has integrated Kraft brands - Oreo, Tang and Toblerone - which were distributed independently in the country prior to the $19.7-billion acquisition of Cadbury in 2010.Since then Mondelez has rapidly gained share in categories such as biscuits, which were new areas for it. In chocolates, it retains leadership through Cadbury, which has an over 70% share in India. In biscuits, it has a share of about six to seven%.In a recent interaction with Business Standard, the company's director, snacking & strategy, Chandramouli Venkatesan, had said that it was looking to consolidate its presence in cookies and creams, which constitutes 40% of the Rs 12,000-crore biscuit market by value, higher than the staple glucose segment. Oreo is a cream cookie.The company recently launched a chocolate cream variant of Oreo in addition to the classic vanilla variant, which is popular across the world. Kraft had priced this new variant at a slight premium to its vanilla flavour available at Rs 5, Rs 12 and Rs 25 respectively. The Rs 5 price point has been done away with for the new variant, with the company opting instead for price points of Rs 15 and Rs 30.It has also been pushing the new variant aggressively at retail outlets in a bid to improve penetration. The company also continues to innovate in categories such as powdered beverages with a thick format of Tang introduced earlier this year.

5 everages & Food Processing Times- -I-2012B DecFood Processing News

Food processing units needed in Odisha: , Industries Minister he state government is keen to promote non-mineral-based industries such as food processing Tin a big way, industries minister Niranjan Pujari

said. Speaking at the valedictory session of 17th Enterprise Odisha 2012, an event organized by Confederation of Indian Industry (CII) at the exhibition ground, Pujari said the state had many mineral-based industries but only a few agro-based and food-processing units. "The industry sector will be sustainable if we have a good mix of all kind of industries," the minister said.

The minister said Odisha has a robust agriculture sector and there is vast scope for value addition to agriculture produce. In the absence of food processing units, the state is not able to make the best of agriculture, he said. Pujari said the state is looking for investors in the automobile sector which is in its nascent stage. Speaking on shortage of raw materials and problems faced by industries like Vedanta, he said the government is trying its best to sort out the issue. CM Naveen Patnaik had inaugurated the event. Naveen had asked the industry to find ways to reverse the country's economic slowdown.

UP approves new food processing policy

ith an aim to boost investments in the state, the Uttar Pradesh government approved Wimplementation of the new Food Processing

Industrial Policy 2012.In a Cabinet meet, presided by Chief Minister Akhilesh Yadav, it was decided to implement the new food processing industrial policy, official sources said. The Cabinet also gave consent to set up a swimming pool in the international sports complex in Saifai, the native village of the chief minister in Etawah.Further, the Cabinet gave approval to create a revolving fund of Rs 30 lakhs to provide medical treatment to employees and former employees of Vidhan Sabha Secretariat in the Sanjay Gandhi Post Graduate Institute of Medical Sciences, Lucknow.With a view to help poor students, it also approved compensation of fees for those in private schools in the state. Besides, it approved changes in the guidelines of MLAs' local area development fund, making provision for extending help to the tune of Rs 25 lakhs for medical treatment to victims of accidents, fire incidents or critical ailment, sources added.

Hi-tech slaughter house on the anvil in Patna

f things go according to plans, Patna may soon have a hi-tech slaughter house. An expression of interest on the Iwebsite of Bihar urban infrastructure development

corporation limited (BUIDCO) has been posted about setting up a modern slaughter house on a five-acre plot at Rama Chakberia on Patna-Gaya Road. The estimated cost of the slaughter house would be Rs 26.34 crore. The proposed structure would have the capacity of slaughtering 200 buffaloes besides 350 sheep and goat on eight-hour shift basis. Ministry of Food Processing Industry, Government of India (MoFPI), has approved Rs 11 crore grant for the project. The bidders can avail the grant subject to the condition that it meets the MoFPI guidelines. According to the proposal, the selected agency would have to set up backward linkage and livestock reception yard, a lairage, slaughter lines for sheep, goat and buffalo, effluent treatment plant (ETP), dry rendering plant, forward linkage with meat, transport facility under cold chain system and meat packaging plant. To keep the plant and adjoining areas healthy, the agency would have to install a rendering-cum-carcass utilization plant for disposal of cadavers and meat waste. However, BUIDCO managing director Anupam Kumar Suman said, "The project has to be implemented in 24 months. It is a semi-mechanized project but the agency would be free to install a fully mechanized plant." He said, "The food processing sector would be deemed to include modern slaughter house and rendering plant, ETP, fruits and vegetables processing plant, processing plant for meat, meat products, fish and fish products, milk or milk products, cold storage for perishable food products, any food park duly approved by the Ministry of Food Processing, government of India or any state government or union territory." Earlier, Patna Municipal Corporation (PMC) had constructed a boundary wall around the allotted land but due to the local residents' protest they had failed to proceed with the project. The slaughter house will be made under public private partnership (PPP) mode. PMC maintains one goat abattoir near Ashok Cinema. "Maintaining a goat abattoir is far easier than providing hygiene to the cow abattoir. The existing cow abattoir runs in an unhealthy and unhygienic condition and there is no option than to shift it," said PMC commissioner Pankaj Kumar Pal.

6 everages & Food Processing Times- -I-2012B Dec

Livelihood Security' at Punjab as investors are taken care of," he resident Pranab Mukherjee Agricultural University (PAU). added.said in Ludhiana that it

The President termed the P The three-day conference is being was time for public-Committee for Agricultural Costs organised as part of PAU's golden private partnership (PPP) in the and Prices (CACP), the National jubilee celebrations.food processing industry as

This was his first visit to Punjab Food Security Mission (NFSM) as the President. "I was looking and the National Horticulture forward to my visit to PAU, an Mission (NHM) as the initiatives institute that helped the country taken by the central government become self-reliant in terms of to give a boost to the agricultural foodgrain production. PAU played sector.

Sharing his experience as the a pivotal role in the dissemination union finance minister, Mukherjee of knowledge to farmers when the said several steps had been taken country needed it the most to to reduce storage wastage of come out of the foodgrain crisis," foodgrains and improve the Mukherjee said.

investors were coming forward He emphasised upon availability of credit to farmers.and state governments should The President called upon collaboration between the union explore the opportunity. scientists present at the and state governments so as to Despite being the second largest conference to deliberate upon the formulate a coherent and producer (after related stories To failure and desperation of a comprehensive agricultural policy save farmers, help lend push to section of the farming community aimed at facing the challenges of crop diversification: CM to Prez as prosperity had eluded a large sustainable agriculture.China) of fruits and vegetables in The President said a large number chunk of it.the world, India lags behind in Speaking on diversification, of policies were susceptible to food processing as post- Mukherjee said farmers should be failure, so it was vital to identify harvesting operations are not up kept away from the cost of the areas of prioritisation, to the mark, the President diversification, which should go followed by immediate action.observed. "Agriculture is the lifeline of the hand in hand with marketing Mukherjee was in Ludhiana to people in our country. That's why reforms, enhancement in inaugurate the international it is given due priority in every productivity, farm mechanisation conference on 'Sustainable union budget, wherein the and entrepreneur development.Agriculture for Food and interests of small farmers as well

he agrarian sector of India, processing as the next sunrise Rakesh Kacker, secretary, ministry which was once a major sector, the Union government has of food processing industries.

These units have been designed to Tcontributor to the country's come out with various schemes to provide full-fledged infrastructural economy, is gradually losing its boost its growth. Apart from facilities like warehouses, storage popularity among the country's setting up mega food parks across facilities, testing laboratories, fruit youth who are lured in by more the country, the ministry of food ripening chambers, etc.lucrative opportunities in other processing iIndustries has already “This will benefit entrepreneurs fields. finalised four schemes on areas who may not otherwise be able to Last year, agriculture contributed such as technology upgradation, dole out huge sums of investment just 5% to the country's GDP. “The cold chains for non-horticultural for the latest technologies. They reason for this below average crops, human resources can now use these facilities at the performance of the agriculture development, and other park by paying a user fee,” said JP sector is because the next promotional activities.Meena, joint secretary with the generation is moving out of Of the 30 mega food parks which ministry.farming activity. Farmers' children are in various stages of Emphasising on the need to are all educated now and are development, 13 have already maintain appropriate quality looking for well-paying jobs,” obtained the final approval. Food standards in the food industry, suggested J Crasta, co-chairman, parks in West Bengal, Tripura, Kacker said that though the Food Southern Regional Development Assam, Punjab, Uttarakhand, and Safety And Standards Authority Council, ASSOCHAM, during a Karnataka are at advanced stages was playing the regulatory role in seminar on Mega Food Parks, in of completion, while the mega this the ministry was keen to start a the city. food park located at Chitoor process of self-regulation by In stark contrast, the food District in Andhra Pradesh is industry.processing sector contributed over already operational and has

15% to the GDP. Recognising food received a warm response, said

he Ministry of Food disbursed through SFAC to the entrepreneurs @25% of the cost of Processing Industries in beneficiaries. plant and machinery and technical

Small Farmers` Agri-Business Tcoordination with Small civil works subject to a maximum Consortium (SFAC) provides soft Farmers` Agri-Business Consortium of Rs. 50.00 lakhs in general areas, loan under Venture Capital (SFAC) under Ministry of or @33.33% subject to maximum Assistance Scheme in the country Agriculture is implementing Mini of Rs. 75.00 lakhs in difficult areas including North-Eastern Region. Mission-IV under Horticulture such as Jammu & Kashmir, Under this scheme, venture capital Mission for North-East & Himachal Pradesh, Uttarakhand, for agri-projects upto 10% of the Himalayan States. Under the Mini Sikkim and North-Eastern States, total project cost or 26% of the total Mission-IV component of this A&N Islands, Lakshadweep and project equity or Rs. 75 lakhs, scheme, assistance at higher rates ITDP areas in the country. The same whichever is lower is provided.i.e. @ 50% upto Rs. 4 crore for pattern of assistance is available Under the Centrally Sponsored setting up of new food processing under NMFP through States / UT Scheme – National Mission on units and upto Rs. 1 crore for Governments.Food Processing (NMFP), the This information was given by Dr. Upgradation/modernization of Ministry of Food Processing Charan Das Mahanta, Minister of existing units is available to Industries extends financial State for Agriculture and Food industries involved in processing of assistance to food processing units Processing Industries in written horticultural produce in the above including fruits & vegetables units reply to a question in the Lok Sabh.States. Further, this scheme is in the form of grants-in-aid to the operational during 2012-13 also. implementing agencies / Funds under the scheme are

he ministry of food Under the scheme for cold processing industries has chain, value addition and Tapproved 62 projects so preservation infrastructure

far for establishing cold chain financial assistance in the form facilities to be implemented by of grant-in-aid at the rate of 50% the private and co-operative of the total cost of plant and sectors. machinery and technical civil

works in general areas, and at As per the Vision 2015: Strategy the rate of 75% of the total cost & Action Plan for Food of plant and machinery and Processing Industries in India'' technical civil works is provided document of April 2005, the by the ministry in difficult areas level of processing in India is subject to a maximum of Rs very low and varies from sector 10.00 crore.to sector and is estimated at

2.2% in the case of fruits and The initiatives are aimed at vegetables. As compared to this, filling the gaps in the supply in developed countries it is very chain, strengthening of cold high__80% in USA and 70% in chain infrastructure, establishing France. It is high in many value addition with developing countries as well infrastructural facilities like 80% in Malaysia and 30% in sorting, grading, packaging, Thailand. processing and preservation for

horticultural and non Through its various schemes for horticultural products like financial assistance and other marine, dairy, poultry, etc.promotional measures, the

ministry of food processing Other agencies of the industries facilitates creation of government such as National post harvest processing Horticulture Board (NHB), infrastructure including Agricultural and Processed Food processing facilities aimed at Products Export Development reducing wastages, enhancing Authority (APEDA), National value addition and increasing Cooperative Development shelf life in the country, as per Corporation (NCDC) and state information provided by the government also provide minister of state for food assistance for cold storages processing industries. under their respective schemes.

bout 30 mega food parks government was keen to are being set up across decentralise implementation of AIndia to attract schemes for the sector in which

investments in the processing states would be free to tailor them sector, minimise wastage and as per their requirement.

"To promote the sun rise sector in optimise production for domestic potential states across the country, and export markets, an official said.

"Of the 30 mega food parks, 13 the ministry has finalised four have been given final approval and schemes ? technology upgradation, seven of them are at advanced cold chains for non?horticultural stage of implementation in Andhra crops, skill development and Pradesh, Assam, Karnataka, promotional activities for backward Punjab, Tripura and West Bengal," and forward integaration," he said.

Stressing on the need to maintain Food Processing Industries quality standards in the processing Secretary Rakesh Kacker said at a units, the secretary said though the day?long summit on the sector Food Safety & Standards Authority here.

Of the remaining 17 projects, 15 was playing the regulatory role, the were accorded in?principal ministry favoured a process of approval in September while two self?regulation by the industry are yet to complete formalities for itself.

"We are in discussion with the apex final approval.Under the 12th Five Year Plan, the industry organisations to develop a ministry has launched the national system of self?certification by food mission for food processing in processing units. The Quality April in cooperation with state Council of India has been directed governments to ensure better to draw a roadmap," Kacker noted.

Noting that the food processing outreach of various schemes sector was critical to achieve chalked out for the sector.

"As the food processing sector has growth in the farm sector, Kacker emerged as the fastest growing said growth in the sector was sub?sector of the manufacturing essential to meet the twin national sector during last fiscal (2011?12), objectives of inclusive growth and the units being set up in the mega food security.

"There will be a surge in demand parks will be provided basic for food products due to shift in infrastructure such as warehouses, demographic profile, as 65 percent storage facility, testing labs and of the 1.2?billion population is fruit ripening chambers," Kacker below 35 years of age and size of said at the summit on 'Mega Food middle class is set for over a Parks: An Investment Destination'.

Addressing members of the 10?fold jump to 583 million people Associated Chambers of from 50 million currently," he Commerce and Industry of India noted.(Assocham), stakeholders and officials, Kacker said the central

Mega parks to woo investments in food processing

Time for PPP model in food processing: Pranab

Food-processing growing faster than agri sector: ASSOCHAM

Steps Taken by the Centre to Promote Food Processing Industries in the North East

Food processing ministry has approved 62 cold chain facility projects

Food Processing News

7 everages & Food Processing Times- -I-2012B Dec

McDonalds' soft serve should be classified as ice-cream for determining excise duty: Supreme Courthe Supreme Court has ruled that the 'soft

serve' sold at McDonalds India's outlets Tshould be classified as ice-cream for the

purpose of determining excise duty, upholding the

excise department's claim. The department had issued three show-cause notices to the fast-food restaurant chain for April 1997-March 2000, saying 'soft serve' would attract the 16% duty plus an additional duty levied on ice-cream. McDonalds India (Ms/ Connaught Plaza Restaurant (Pvt) Ltd) had opposed the classification, leading to the dispute.

In a judgement last week, the apex court ruled, "We

are unable to accept the argument that since 'soft serve' is distinct from 'ice-cream' due to a difference in its milk fat content, the same must be construed in the scientific sense for the purpose of classification." The two-member bench comprising Justices DK Jain and JS Khehar said, "In absence of any statutory definition or technical description, we see no reason to deviate from the application of the common parlance principle in construing whether the term 'ice-cream' is broad enough to include 'soft serve' within its import."

Earlier, the Customs, Excise and Gold (Control)

Appellate Tribunal in Delhi had concluded that 'soft serve' should be classified as 'edible preparations, not elsewhere specified or included' and 'not bearing a brand name', attracting nil duty. The tribunal upheld McDonalds' claim that 'soft serve' could not be classified as ice-cream since ice-cream contains 10% milk fat whereas 'soft serve' does not contain more than 5% milk fat. Both the company and the excise department had filed appeals in the tribunal after three adjudications following the department's proposed penalty on the assessee and its managing director. Ruling that the tribunal had erred in classifying 'soft serve', the apex court also said that there was no merit in the company's contention that 'soft serve' could not be regarded as ice-cream since it was marketed across the world as 'soft serve' and not ice-cream. "The manner in which a product may be marketed by a manufacturer does not play a decisive role in affecting the commercial understanding of such a product. What matters is the way in which the consumer perceives the product at the end of the day notwithstanding marketing strategies," the court ruled. "The true character of a product cannot be veiled behind a charade of terminology, which is used to market a product," court said. "In other words, mere semantics cannot change the nature of a product in terms of how it is perceived by persons in the market, when the issue at hand is one of excise classification." The court also dismissed the company's argument that as per culinary authorities, ice-cream must necessarily contain more than 10% milk fat content and be served only in a frozen to hard stage for it to qualify as ice-cream.Classifying 'soft serve', which contains 5% milk fat content, as ice-cream would make the product stand foul of requirements of the Prevention of Food Adulteration Act, McDonalds' lawyer claimed. Rejecting this claim, the court said that such a hard and fast definition of a culinary product like ice-cream, which has seen constant evolution and transformation, is untenable. Food experts suggest that the earliest form of ice-cream may have been frozen syrup, the court added, concluding that there is no clear or unanimous view regarding the true technical meaning of ice-cream. In fact, there are different forms of ice-cream in different parts of the world that have varying characteristics, the court said. "Besides, even if we were to assume for the sake of argument that there is one standard scientific definition of 'ice-cream' that distinguishes it from other products like 'soft serve', we do not see why such a definition must be resorted to in construing excise statutes," the court said. "Fiscal statutes are framed at a point of time and meant to apply for significant periods of time thereafter; they cannot be expected to keep up with nuances and niceties of the gastronomical world."

Dairy News

8 Dairy News everages & Food Processing Times- -I-2012B Dec

in 2010. But the Rs 1,000-crore one sixth of the world's milk and Anmum - producing powdered merger of the two largest ew Zealand-based dairy project, which envisaged having almost all of this is consumed milk, ready-to-milk, yoghurt, cooperatives in New Zealand - the giant Fonterra, one-time N 40,000 high-yield cows that locally. The country has a large, cheese, butter and other dairy New Zealand Dairy Group and partner of Bangalore-produced high-quality milk, did not complex dairy industry and, while products that are exported to Kiwi Co-operative Dairies - with headquartered Britannia, has take off following the Board of Fonterra has developed a strong markets in the Middle East, the New Zealand Dairy Board.announced it is setting up a local Approvals for Special Economic knowledge of the country's dairy Australia, Africa and Asia. Gowans, who takes over as the office in a bid to step up its Zones rejecting IFFCO's proposal. India head, has an understanding of

presence in India. The new office, in With the independent office now, emerging markets, says Wickham,

Delhi, will be led by expatriate Fonterra, which has revenues in having managed exports of

Hamish Gowans, who will be excess of $17 billion, is expected to Fonterra's products to countries in

designated as general manager.go solo in the country. Fonterra's Asia. He is expected to help the

The move to have a local presence president Greater China and India dairy major galvanise its operations

comes at a time when the Auckland-Kelvin Wickham said the opening India as its seeks avenues to

headquartered group, formed in of the new office would help the establish itself and grow. But with

2001, is fine-tuning its strategy for company get a better understanding well-entrenched local players such

India following two aborted of the local dairy market. as Amul and Mother Dairy as well

attempts to get a foothold in the "India's dairy industry is growing as private players such as Britannia,

country. Following the split with rapidly. With 20 million more Nestle and Danone, the road ahead,

Britannia in 2009, when the latter mouths to feed every year and an say experts, is not likely to be easy.

acquired Fonterra's 49% stake in the increasingly affluent population, the Besides national level-players, the

seven-year-old joint venture demand for high quality dairy dairy markets in India has a number

Britannia New Zealand Foods, the environment, it is clear we need to According to industry estimates, nutrition continues to grow at a of regional brands that massively

Kiwi giant had attempted to tap the have dedicated leadership on the Fonterra is responsible for over rapid pace - annual dairy undercut to drive penetration.

local market by entering into an ground to further strengthen 25% of the world's dairy exports. In consumption is forecast to reach Thanks to all this most private

agreement with the Indian Farmers relationships and develop New Zealand alone, Fonterra is the around 180-200 million tonnes by players have opted to operate in the

Fertiliser Cooperative Ltd (IFFCO) opportunities," he added. largest cooperative group with over the end of the decade," Wickham value-added or premium dairy

to set up a large dairy farm at the Globally, Fonterra has three core 10,000 farmers owning it. The said. "Today India produces around market in India.

latter's Nellore Kisan SEZ This was brands - Anchor, Anlene and group was formed following the

Dairy major Fonterra sets up local office as India thrust grows

tirring Indian milk with Australian technology for Sproduction of value-added

items. This was the key theme discussed between Indian dairy players and an Australian dairy team at a joint meeting.

The Australian team, led by Michael-Carter, Trade Commissioner, expressed interest in exploring India-Australian tie ups in the areas of animal husbandry, dairy development and livestock research.

It was observed at the meeting that while the Indian dairy sector is witnessing phenomenal growth in terms of milk production, it is facing challenges in the form of export growth and development of value- added products.

On the other hand, Australia has lesser production of milk, but significant expertise in the areas of processing and livestock development.

“Australia is currently the third largest exporter of dairy products in the world and our strength in accessing export markets can be leveraged by India companies through tie-ups with Australian dairy firms and co-operatives,” Carter said.

M.V. Reddy, Andhra Pradesh Director of Animal Husbandry, pointed out that the Indian dairy sector could explore imbibing Australian technology to increase average milk production and fodder management.

In a follow-up to the meeting, another Australian dairy delegation will visit Hyderabad in March during the second edition of the Dairy Show and meet with dairy entrepreneurs and farmers from Andhra Pradesh and other parts of the country.

Andhra Pradesh produces 11.6 million litres of milk, but only about 13 per cent was being procured by the organised sector, leaving farmers with surplus production. Also, the procurement price here is the lowest compared with other milk producing centres at Rs 17 a litre, compared with Rs 19.50 in Maharashtra and Rs 22 in Gujarat.

Australia explores tie-ups in Indian

dairy sector

everages & Food Processing Times-B Dec-I-2012 Dairy News

to other parts of the country, and to the farmer and value to the created as part of the 'Operation (SBUs) - dairy, horticulture and oils ast month, a rep from the even overseas. The top management consumer, the twin peaks that are Flood' programme of the National - were created and functional Irish Dairy Board dropped by L today comprises hires from embedded in the DNA of the Dairy Development Board structures were designed. Gradually, at Mother Dairy's Patparganj multinational companies (NDDB). In 2000, a fourth SBU, dairy products, was plant in East Delhi to shoot the who bring in much needed Mother Dairy Fruit & incorporated. "The accountability breeze with Managing Director Siva agility and leanness to an Vegetable Private matrix was also fixed at that point Nagarajan. They met in the plush organisation that counts a Limited (MDFVPL) of time, implying each functional confines of the company's million people in its was incorporated as a head was accountable for Innovation Centre conference room supply chain dispensing 30 wholly-owned everything in their respective and as the conversation progressed, lakh litres of milk a day. domains," says Saugata Mitra, subsidiary of NDDB to Nagarajan --or Naga as he's fondly From selling Chief People Officer, MDFVPL, take over the assets, called -- served up a pinkish cup of commoditised milk to who served Japanese consumer functions and rice kheer to the Irishman. exporting mangoes to electronics majors Sony and Sharp personnel of Mother Japanese customers or before taking up a position with Dairy Delhi and Fruit He devoured it in no time and asked banana purees for sorbets Mother Dairy. & Vegetable Project. for a second helping. Naga obliged in the European market to All through the transition and But it was in FY2007-and then asked why he asked for identifying gherkins as an beyond, the six-member board led 08, on the another cup. It transpired that he export item off Bangalore by Chairperson Amrita Patel, has recommendation of a had at the back of his mind rice or even offering golgappa- been more than supportive, says study by Accenture, a pudding in Germany from a firm flavoured kulfis at Rs 5 a Naga. "This board has a sense of corporate structure called Mulder. He wanted to do a pop to the domestic appreciation of what the consumer actually started taking mental comparison of the two consumer, Mother Dairy wants and what the farmer has to go root. That year, Dhara products. Naga made sure the straddles an enviable through. It understands fairness and Vegetable Oil & Food meeting ended on a sweet note as range. In its march to doesn't do anything with a short Company Limited, the Irishman asked for tech transfer capture new markets and term point of view," says Naga, who another wholly-owned for kheer and a bevy of other company. emerge as a leader across has wide-ranging experience in subsidiary of NDDB, was products that Mother Dairy categories, the Rs 5,279 crore theFMCG space and worked with amalgamated into the fold of manufactures. The corporate makeover company is hiring global MDFVPL. Philips before signing on at Mother Mother Dairy has been re- There's clearly a change in thinking consultants to tweak its systems, Soon after, taking cues from the Dairy. He demonstrates with an calibrating its Delhi-centric from a cooperative setup back in keeping a mindful eye on fair price study, three strategic business units example. approach over the years, expanding 1974 when Mother Dairy was

How a transformed Mother Dairy is spreading its wings from Delhi to Dublin

Dairy foods intake cuts hip fractures risk

ncreasing consumption of dairy foods may help reduce risk of osteoporotic fractures in the population aged over 5 and reduce healthcare costs, I

a new study has suggested.The study was based on a new analytical model that links nutrition and fracture risk, and health economics. It was based on data from the Netherlands, France and Sweden, countries which have varying levels of dairy product intake in the population.Calcium is contained in different types of foods (including in certain fish and greens), however around 60 to 70 percent of daily calcium intake in Western Countries is derived from dairy products.In addition to calcium, dairy products also provide a

large variety of essential nutrients such as minerals, vitamins and proteins that, along with vitamin D, are

also beneficial to bone health.Low dietary intake of calcium has been associated with decreased bone density and increased risk of osteoporosis, a disease where bone becomes less dense and prone to fracture.The researchers calculated the number of disability-adjusted life years (DALYS) lost due to hip fractures associated with low nutritional calcium intake and the number of hip fractures that could potentially be prevented each year with intake of additional dairy products.The benefits were highest in France with 2023 prevented hip fractures, followed by Sweden(455) and the Netherlands (132). This represents a substantial health cost savings of approximately 129 million, 34 million and 6 million Euros in these countries, respectively."Our study likely underestimates the potential cost savings of increased dietary calcium in that it relies on existing figures for the senior population and does not take into account the long-term benefits to the younger generation," said study co-author Professor Rene Rizzoli, Professor of Medicine and Head of the Division of Bone Disease at the University Hospitals of Geneva."Adequate nutritional intake and regular exercise during childhood and adolescence, both necessary for the development of peak bone mass, may contribute to bone strength and reduce the risk of osteoporosis and fractures later in life," he added.

9

announced that co-operatives in litres daily. While for the large base by expanding market company's veterinarians carry out ith nearly 70 lakh litres of Tamil Nadu were procuring about players this is an opportunity to geographies are the only option for over six lakh artificial milk being handled daily by W 27 lakh litres of milk daily. The expand their procurement base to sustained growth. Dairy output is inseminations annually, which will the cooperative and the milk is sold as liquid, packeted milk grow the business, the smaller growing with farmers seeing an maintain availability of about one organised players in the private

opportunity for weekly, assured lakh additional female calves to sector, Tamil Nadu has emerged the income from milk supplies while keep the production pipeline going.second largest dairy player after agriculture is a seasonal operation. Gujarat. R. Rajasekaran, Secretary, Tamil But the increase in milk Nadu Dairy Association, said the Though a far second, with procurement needs to be utilised. wide industry base is helping in cooperative in Gujarat alone While farmers' income is protected, keeping the procurement going. handling 1.2 crore litres of milk, the surplus has ensured there is no Even if some small players stay two of the largest players in Tamil 'inflation' in milk while prices of away, the produce is absorbed by Nadu, the Tamil Nadu Cooperative dairy products have dropped. While the larger players. Deficient Milk Producers Federation and the Hatsun Agro's margins are squeezed monsoon, agri-labour shortage is private sector Hatsun Agro Product it is an opportunity to expand driving farmers to dairying as there Ltd together procure nearly 50 lakh procurement in the long-term, he is assured and regular income. litres of milk directly from dairy said. Typically, production increases by farmers.

4-5 per cent annually but this year The company's presence in a According to industry sources, on the growth is set to double.diverse base including, milk powder going flush season is seeing a rapid and processed into various dairy players are also growing though

exports, countrywide marketing of Deficient monsoon also means that increase in milk production and the products. In the private sector, there is some short-term pressure on branded products including ghee, from January when the dry fodder co-operative and private sector has Hatsun Agro procures about 21-24 maintaining procurement.dairy whitener and milk powder is availability goes down, output could managed to keep procurement lakh litres of milk daily and enabling milk absorption. Nearly 13 drop. Also fodder concentrate prices going even as in neighbouring according to the Tamil Nadu Dairy DIVERSIFICATIONlakh litres of milk is processed into are increasing with prices going to States the dairy industry is declaring Association, which represents over

R. G. Chandramogan, Chairman branded milk, ice-creams and Rs 19 a kg from Rs 12 kg .a 'procurement holiday'. 100 small dairy companies that sell

and Managing Director, Hatsun related products while the balance is branded milk in packets, some of Following a review last week, the Agro, says, diversifying the product converted to dairy ingredients. The them procure up to 25,000-50,000 Dairy Development Department had

than 98 per cent are rural worth of dairy produce. 'Amul' has success of the dairy or other farm where cooperative societies do not he United Nations has cooperatives, barely 50 per cent of become a household name. Kurien enterprises. Convergence in the function well, cooperation can be declared this year as the T them are active in the rural credit rightly diagnosed that a major provision of services relating to promoted among farming families International Year of system. The National Commission ailment of the cooperative sector is breeding, nutrition, healthcare and in a village based on shared goals Cooperatives. FAO chose for the

processing and marketing is an and enlightened self-interest. The World Food Day on October 16, essential requirement for success. self help group model which is the theme “Agricultural Second, a quality literacy now helping women to get the Cooperatives

Key to Feeding the World”. movement should be launched to power of scale in small scale According to FAO, cooperatives spread knowledge of Codex enterprises could also be adopted across all sections provide over alimentarius standards of food in farming. Farmers can form eco-100 million jobs around the world, safety as well as animal hygiene societies, which will ensure that 20 per cent more than and sanitation. Third, cooperatives environmentally benign multinational enterprises. In 2005, should be professionally managed technologies like integrated pest the Indian Dairy Cooperatives, and authority and accountability management, integrated nutrient with 12.3 million members, should go together at all levels. supply and scientific water accounted for 22 per cent of the Fourth, human resource management are adopted. Contract milk produced in the country. development is important both at farming is another pathway for Sixty per cent of members are the farmer and professional levels. providing the advantages of group landless or have very small plots Farmer level capacity building can cooperation in production and of land. Women make up 25 per be done in Krish Vigyan Kendras, marketing.cent of the Vidya Dairies, as well as in the Section 25 companies can also be membership.Cooperative credit farms of outstanding dairy promoted where farmers are societies are performing a valuable entrepreneurs (farmer to farmer engaged in enterprises such as role since they extend credit to learning). Fifth, public policies in hybrid seed production and the

on Farmers called for the the absence of professional farmers at a low interest rate.They the fields of import and export of manufacture of the biological revitalisation of the cooperative management. He had difficulty in occupy 7.4 per cent of the animal feed (concentrates), input software essential for sustainable credit system and suggested that finding competent managers for financial space in the economy and output pricing and investment agriculture.the rate of interest should be 4 per the new dairies set up under the according to B Yerram Raju. and infrastructure development cent for loans extended to farmers. Operation Flood programme. This Raju also points out in a recent should ensure the sustainability We have nearly 25 per cent of the Some state governments like led to the organisation of the article (Inclusion, July-Sept 2012) and survival of small-scale dairy world's farmer population and Madhya Pradesh are giving loans Institute of Rural Management at that there is an unfortunate fall in farming. Finally, the fact that poverty and malnutrition are at interest rates even lower than 4 Anand. He also set up a Vidya the share of cooperatives in the women play a pivotal role in dairy widely prevalent among marginal, per cent. The rejuvenation of the Dairy in the Anand Agricultural rural credit market from around 62 farming should be kept in view, small farm and landless labour cooperative credit system is University.per cent in 1992-93 to about 34 per while developing support systems. families. Farm size is diminishing essential for achieving the goal of This is a unique training school cent in 2002-2003. The Gender specific needs, such as and prime farmland is being sold “financial inclusion”. In addition imparting practical experience Constitution (97th Amendment) creches for infants and medical for nonfarm purposes. A socially to the financial sector, there is from milking to marketing. In our Act 2011 enacted by Parliament is help for adults should be met. viable method of getting small need for cooperatives both at the country, with a very large number designed to aid the promotion, Among outstanding examples of scale producers together, either in production and post-harvest phases of small and marginal farmers and ownership, control and the success of cooperatives, the form of cooperatives or of farming. with the growing feminisation of management of cooperatives by mention may be made of the selfhelp groups is urgently needed Thanks to the late V Kurien, and agriculture, the cooperative members and seeks to reduce state Indian Farmers Fertiliser to maintain young farmers' interest the late Tribhuvandas Pa tel, the pathway is the most beneficial one control in partnership. It is to be Cooperative (IFFCO), which is a in farming. If farm economics or cooperative sector assumed a for enhancing rural livelihood and hoped that all state governments unique venture with 39,824 ecology go wrong, nothing else dominant role in our dairy nutrition security. The will formulate new Cooperative cooperative societies as members. will go right in agriculture.industry, particularly in Gujarat. achievements of the dairy sector Acts in line with the 97th The Krishak Bharati Cooperatives The Gujarat Cooperative Milk provide many lessons to policy Amendment before too long. (KRIBHCO) has become the (M S Swaminathan is an Marketing Federation is one of the makers such as the following: Yerram Raju also points out that world's premiere fertiliser agricultural scientist who led largest organisations of its kind, First, there is need for an end-to-while there are as many as 97,410 producing cooperative. India's green revolution )handling nearly Rs12,000 crore end approach for ensuring the cooperative banks, of which more NCF has suggested that even

everages & Food Processing Times-B Dec-I-2012 Dairy News

Flush with milk, TN emerges second largest dairy player after Gujarat

India and international year of cooperatives

10

global buyers show interest. The process begins. dragged down some of its rivals estimated business of more $80 airy giants Danone and with investments and lower billion, which could more than Fonterra are among D profitability, besides high voltage double by the end of the current potential acquirers of a competition in metros. decade. controlling stake in Hyderabad-The company processes 1.6 Another large private dairy firm, based Tirumala Milk Products million litres milk daily across a New Delhi-based Sterling Agro, after promoters and private string of plants in the three has mandated NM Rothschildto equity investor Carlyle Group southern states. The founders are find buyers, leading to another started work on a share sale plan. most likely to retain a big potentially big deal in the sector. The 15-year-old Tirumala , the

sale will be open only to foreign Emailed queries to Danone and minority stake, considering that Banking on white business second largest private supplier of strategic acquirers and the Carlyle Group remained any foreign buyer would need a Carlyle holds 20% in the liquid milk in the southern states, original founders plan to retain a unanswered at the time of going strong local partner to manage Hyderabad-based Tirumala Milk will ask around Rs 2,500 crore, part of their stake," said a source to press. Fonterra could not be operations in a heavily Products, which is the second or $450 million, in enterprise mentioned earlier. reached immediately. Tirumala fragmented industry with strong largest milk supplier in southern valuation, said sources directly French foods behemoth Danone is expected to end the current regional flavours. states Five other first-generation familiar with the process. is among the interested suitors fiscal with Rs 1,500-crore Sources said there has been rural businessmen jointly own Carlyle, which invested less than who have approached the revenue, with an operating profit discussions of strategic M&A in remaining majority share in the three years ago, holds 20% stake. company, expressing serious estimated at 9-10 %. The the Indian dairy sector for a 15-year-old milk co Tirumala has A group of five first-generation intent to buy a large stake. company with a strong while, but no big deal has been a strong network across AP, rural entrepreneurs jointly own Fonterra of New Zealand is distribution network across clinched yet. Private equity deals Karnataka & TN, and has not the remaining majority shares. another foreign player, but talks Andhra, Karnataka and Tamil have valued assets in this sector ventured beyond liquid milk, The PE investor and the with the latter is in very Nadu has stayed focused on anywhere between 12 and 15 butter ghee, sweets PE investor, promoters have short-listed three preliminary stages. Investment liquid milk, butter ghee and times their operating profits. promoters have zeroed in on 3 global investment banks as they bankers have pitched names of some ethnic sweets. It has not India is among the top global global investment banks for the get ready to launch a sale. other global acquirers but clarity forayed into higher priced markets by per capita sale which is open to foreign "Investment banker/s will be would emerge only after a formal processed dairy products that consumption of milk, with an groups only.mandated shortly after a few

everages & Food Processing Times-B Dec-I-2012 Dairy News

Danone, Fonterra eye Tirumala Milk

Indian ice cream market to grow of 17% during 2012-2017

ncreasing affluence, a large young population, product innovation, growing institutional sales, Ietc. are expected to be the catalysts in driving the

Indian Ice Cream market in the coming years. Research firm IMARC Group expects this market to grow at a CAGR of 17% during 2012 - 2017, according to its latest report titled “Indian Dairy Market Report & Forecast: 2012-2017”. The report which has done a comprehensive analysis of the Indian dairy market expects the share of the organized sector to increase significantly in the coming years. According to an analyst at IMARC Group, “Although, the unorganized sector currently accounts for a larger share of the Indian ice cream market; it is shrinking considerably in the urban areas. In the rural areas, however, kulfis/ice creams made by small/cottage industry are popular. In small towns and villages, there are thousands of small players who produce ice creams/kulfis and cater to the local demand. The market for the organized sector is restricted to the large cities in the country. In the coming years, however, the penetration of organized players such as Amul and Kwality Walls are expected to increase in the rural and semi urban areas as well”.According to the report, a notable shift in the consumption pattern of ice creams in India has been from impulse purchase by youngsters as fun food to its regular use as a dessert. Driven by this rising trend, the report found that the share of take-home sector over the last five years has increased significantly and currently accounts for more than 60% of the total ice cream market in India. This study, an updated and far more extensive and analytical version of our popular 2011 study, provides and draws upon a comprehensive analysis of every major dairy segment in India. The study, which has been undertaken using both desk research and two waves of qualitative primary research, has analyzed three aspects of the Indian dairy market. The first section quantifies the Indian dairy market into fourteen major segments and investigates the current and future opportunities in each of these segments. The second section provides an in-depth understanding of dairy consumption patterns among Indian consumers and the potential of value added dairy products. The third section investigates into the usage of natural colouration in dairy products and evaluates their current and future potential.

11

country. And import only on rare certain irrational facts, this there are less than 200 outlets occasions when local supplies opposition leader of Lok Sabha now, India is expected to be such ran out. Swaraj's subsequent should have made an effort to an important market that Yum! attack, while opposing the find and understand what Brands India reports directly to government decision to allow PepsiCo has done in helping the headquarters in Louisville, foreign supermarket chains to farmers improve yield and Kentucky.

So Kapil Sibal's statement open stores in India, was on income:The company' has created a cost- seemed quite contrary to the PepsiCo, commenting that, effective, localized agri-supply statistical figures. Though KFC "Pepsi promised to buy potatoes chain for its business by building declined comment on Sibal's and tomatoes from farmers (in a stature as a development statement in the parliament, the Punjab), but backed out later."

In its defense, PepsiCo India, the partner by helping farmers grow truth is that the chain has been largest snacks player in the more and earn more. It expanding furiously and has country, said that it sources all its introduced new high-yielding already become Yum! Brands potato requirement from within varieties of potato and today largest-selling fast food chain, the country and works with over PepsiCo India has introduced overtaking Pizza Hut. Also, 24,000 farmers across nine states world-class, top-quality, high- Yum! expects KFC to account including West Bengal, Punjab, yielding potato varieties. High- for 60% of the $1 billion sales Gujarat, UP, Maharashtra, yielding potato seeds have that the company is expected to Karnataka and Bihar. allowed farmers to produce generate by then.

Ultimately the research done by According to PepsiCo, they are world-class potatoes and obtain opposition to stop FDI in the the largest procurer of potato in higher returns.

Also by introducing sustainable retail sector, was not apt. Ms India and procured 240,000 MT farming methods and practicing Swaraj did try to blemish these of potato from Indian farmers in

olitics and publicity run Congress's FDI proposal, he is contact farming this company companies and their effort t to 2012, which is more than double on the same track. BJP's ready to grow a two-foot potato! has provided world-class directly benefit the farmers. of had been procured five years Ptop notch leader Sushma I hope he can tell the difference agricultural practices available to Today we need capital and funds ago. This giant company has set

Swaraj in the utmost foray to between a potato and a bottle farmers and helping them raise as well as world class agri up a state-of-the-art potato seed impede the implementation of gourd. farm productivity. In fact its –businesses to compete. No facility in Punjab and all the seed

Multinational food majors FDI in retail used her position to biggest highlight is that this doubt, the entry of FDI in this is provided to farmers across the McDonald's, PepsiCo and KFC play blame game and tarnish company believes in working sector can definitely bountifully country is grown by Punjab and got a taste of real Indian politics certain Multinational companies closely with farmers and state position the agri industry in the Haryana farmers.when Parliament started a debate that actually benefited the Indian PepsiCo works with farmers governments to improve agri- top notch level. FDI would also on allowing FDI in multi-brand immensely. throughout the crop cycle — sustainability and crop be benefiting the Indian farmer

The issue of multinationals retail where the ruling front and providing quality seeds, diversification and also immensely without the acting against the interests of the opposition traded charges that technical expertise, facilitating facilitating financial and intervention of the middlemen.Indian farmers has been debated left the US firms upset and Alas the FDI has been passed in loans from banks, harvesting insurance services in order to de-over the time in the wake of the dumbfounded. the parliament, what else is left expertise etc." risk farming.

The FDI debate left a sour taste government's proposal to PepsiCo pioneered contact to say! Except, it is an important PepsiCo has been operating in for McDonald's, Pepsi, KFC and introduce 51% foreign direct farming in order to improve the thing. It will boost the India since 1989, has many multinational companies. investment in multi-brand retail performance of a tomato government's confidence to significantly expanded its McDonald's refuted Sushma sector. processing plant in Punjab; it implement key economic footprint in India and currently

BJP has been opposing the move Swaraj's allegation that the fast- imported and tested high- reforms and would definitely has 38 beverage bottling plants to introduce FDI in multi-brand food giant does not source even yielding varieties that thrived help the government in passing and three food plants. With retail since the government had basic commodities such as best in India. Consequently, yield the other important and pending several food and beverage brands introduced the thought of FDI in potatoes from within India, while improved by over 300% and the reform measures very quicklyin the country, PepsiCo is retail. Whatsoever wasn't it the PepsiCo issued a clarification Indian industry has welcomed length of the tomato season more estimated to have about eight NDA who has cultivated the idea that it is the largest procurer of the approval accorded by Lok than doubled, resulting in a Rs1, 000 crore brands.of FDI in this regime. Sushma potato in the country. Sabha to FDI in multi-brand Amid the controversy over the substantial increase of farmer

KFC, which is on an expansion Swaraj known for her orating retail, saying it will send a strong way multinational food and incomes. Today, the success of spree in India, did not comment, ability was put in the front by the signal to foreign investors and beverage companies have been contact farming has spread and but it must have been shocked to opposition to foil of this enable the government to take up importing critical raw materials PepsiCo engages with over hear communications and IT investment. further economic reforms. FICCI instead of procuring them 22,000 farmers across the

Ms Swaraj, blamed and cited that Minister Kapil Sibal say, "Many – The association of associations locally, PepsiCo, the soft drinks country to grow a variety of PepsiCo as an example of how said KFC will drive the dhabas has hailed this development and and snacks giant, said it would crops. Through this partnership, multinational companies short- out of the market. Dhabas have fully supports the government. double the procurement of PepsiCo has transformed the change Indian farmers on one driven out KFC. The country needs to move potatoes from Indian farmers lives of thousands of farmers by

Sushma Swaraj had alleged pretext or the other. She pointed forward and it's high time to send from the current 2.4 lakh tonnes helping them refine their farming McDonald's about their fries, out that PepsiCo sourced most of a strong signal to foreign over the next five years. techniques and raise farm saying that they never buy the potatoes needed for This company has been working investors.productivity.potatoes from local Indian manufacturing chips from FDI will introduce new with about 24,000 farmers and KFC is now a prominent farmers, saying the potatoes are abroad, saying Indian potatoes technology and investment in last year we procured about 2.4 presence in Indian cities and too small here. But in a rare were not large enough for the marketing agricultural produce. lakh tonnes of potatoes through towns. The red and white instance of a multinational size of chips it produces. India must take full advantage of contract farming. PepsiCo will signboard has become evidently

In fact, the argument over refuting a politician, McDonald's modern technology and continue this program and now even more visible. Yum! Brands, potatoes resulted in some hilarity India (North and East) in a press operational and management trying to expand the programme the parent company that owns in the House when Congress MP statement said: "We confidently experience of big supply chains in order to double the the KFC brand, has set in motion D S Hooda claimed that farmers and proudly state that ingredients in the food retail business to procurement over the next five an expansion plan to open 500 in his native Haryana were ready used in our products are sourced make this happen. The future is year. This company has contract stores by 2015. It isn't being to provide 24-inch-long potatoes locally that includes the French rarely a linear extrapolation of farming arrangements in about over-ambitious. About 1,800 for PepsiCo's chip- fries. the past. Circumstances change seven states and is now said to people visit each of the 190

McDonald's India, said it was manufacturing plants. Taking a and new challenges arise. It is, be focusing on expanding its existing restaurants every day. In honoring a prior investment swipe at the young therefore, important to identify procurement process in the December alone, there will be 40 commitment with the parliamentarian, Swaraj had challenges of the future and start Indian agriculture sector. new KFCs popping up all over government that it would source remarked: So excited is he at Before commenting on basis of working now to meet them.the country. Despite the fact that its entire raw materials from the eliciting support for the

12 everages & Food Processing Times-B Dec-I-2012 Brand Report

THE IMPLEMENTATION OF FDI IN RETAILA DEBATE OF BLAME, POWER AND TRIUMPH

The future is rarely a linear extrapolation of the past. Circumstances change and new challenges arise.

Hence it is important to identify challenges of the future and start working now to meet them.

functions of the body. Its major “triglycerides” resulting from the reactive chemically. can be found in olive oil, nuts, functions are: combination of one unit of glycerol peanut oil, canola oil and avocados. These fats are derived from animal

and three units of fatty acids. The products such as meat, dairy and *it helps supply energy (9 cal/gm) .Polyunsaturated fats (PUFA) - fatty acids comprise of carbon- eggs. But they are also found in

These contain two or more double carbon chains some plant-based sources such as *it also helps absorb fat-soluble bonds. They are also liquid at room When they are solid at normal room coconut, palm and palm kernel oils. vitamins (A,D,E and K) temperature. These are found in temperature, they are referred to as These fats are solid at room

safflower, sesame, corn, cottonseed “fats” and when they are liquid at temperature. *provide essential fattyacidsand soybean oils. that temperature, they are called whichare the building blocks for the Unsaturated fats

“oils.”hormones needed to regulate bodyThose containing one or more ESSENTIAL FATTY ACIDS – The main components of edible fats functionscarbon-to-carbon double bonds are These fatty acids are "essential" and oils are triglycerides. The termed “unsaturated.” because our body is not able to minor components include mono *it helps to give a satiety feel i.e.

synthesize them and must be provide a sense of fullness and diglycerides, free fatty acids, Monounsa tu ra t ed f a t s and obtained through the diet. These phosphatides, sterols, fat-soluble polyunsaturated fats are two types

*it acts as an insulator to maintain include omega-6 (Linoleic) and egetable oils and fats are vitamins, tocopherols, waxes, etc of unsaturated fatty acids. They are body temperature omega-3 (Linolenic) fatty acids, recognized as essential derived from vegetables and plants. To understand the nutritional and Classification of Oils and Fats: which have been linked to lowering Vnutrients in human diet. It is functional importance of fats and Oils and fats can be further divided triglyceride levels. Common .Monounsaturated fats (MUFA) the most important ingredient in oils, it is necessary to understand into the following categories: sources of essential fatty acids – These contain one double bond. any food recipe as they provide their chemical composition. include vegetable oils, fish, grains, They are liquid at room temperature taste, texture and above all Saturated fats (SAFA)

seeds, and green vegetables. but begin to solidify at cold nutrition. Apart from enhancing the Those containing only single Chemical Composition: temperatures. This type of fat is palatability of the food, it also plays carbon-to-carbon bonds are termed Fats and oils are made up of TRANS FATSpreferable to other types of fat and a vital role in the metabolic “saturated” and are the least There are some fats that are formed due to modification of oils by a process called Hydrogenation. These are known as TRANS FATS. Unlike other members of the fat family (saturated, polyunsaturated and monounsaturated fats), trans fats, or trans-fatty acids, are largely artificial fats. Studies have shown that trans fats are linked to heart disease.Trans-fatty acids (TFA) are found in small amounts in various animal products such as beef, pork, lamb and the butterfat in butter and milk.

Despite the many benefits oils and fats have, too much in our diet can cause major health problems. Although all fats have the same amount of calories, some are more harmful than others. Intake of fats also affects the blood cholesterol levels which is directly linked to heart disease, the most common being the coronary heart disease or CHD in short.Cholesterols are primarily of two types:

*LDL or Low density lipo-proteinalso known as ' The BADCholesterol' as it builds up on thewalls of arteries

*HDL or High density lipo-proteialso known as ' The GOODCholesterol' as it helps removecholesterol from the walls of

arteries

.Saturated fats : Too much of it raise LDL cholesterol

.Monounsaturated fats – Lower LDL cholesterol and maintain HDL cholesterol

.Polyunsaturated fats – Lower LDL cholesterol and too much of it lowers HDL cholesterol

.Trans fa ts – Ra i se LDL cholesterol and lower HDL cholesterol

By: Dr. K.D. YadavSr. Vice President (Technical )Kamani Oil Industries Pvt Ltd.Mumbai, India.

13 everages & Food Processing Times-B Dec-I-2012 Oils & Fats

VEGETABLE OILS AND FATS

Thus one has to have minimum or no trans fats and right balance of SAFA, MUFA and PUFA in our dietKnowing the right fats to eat can help us to maintain a healthy heart and a healthy body

BENEFITS OF FROZEN DESSERT AGAINST ICE-CREAM

The FSSAI defines Frozen dessert as – “a product obtained by freezing a pasteurized mix with milk fat and/or edible vegetable oils

and fats having a melting point of not more than 37° C in combination and milk protein alone or in combination/ or vegetable

protein product with the addition of nutritive sweetening agent”.

Milk fat is an expensive ingredient in many developing countries and vegetable fats provide an inexpensive high quality alternative.

The use of vegetable fats results in lower costs and higher production output. It also makes it possible to give the frozen dessert a better

nutritional profile.

Salient Features of the vegetable fat used in frozen dessert:

· The fat based with sharp melting properties at body temperature is highly desirable to ensure good organoleptic

characteristics.

· The fat must have a bland taste that does not mask any added flavours

Advantages of using Vegetable fat over Dairy fat/cream:

1.Frozen Dessert made from Vegetable fat is Trans free and Cholesterol free, whereas Ice cream made with Dairy Fat contains Trans

fats and cholesterol which is not good for health.

2.Dairy cream is not as stable as compared to Vegetable fat.

3.Dairy cream used in Ice Cream has to be stored in refrigerator whereas one can store Vegetable fat at room temperature.

4.Frozen desserts are easier and often faster to make as compared to Ice creams.

Vegetable Fat Dairy Fat (AMF)

Nature of Fat 100% vegetable fat 100% animal fat

Cholesterol Absent Present

Melting Point 31-34° C 29-35° C

IV 32-35 26-38

FFA 0.1% 2.5% max

Odour Odourless Odour present

Trans fat Absent Present

everages & Food Processing Times-B Dec-I-2012 14

Australia explores tie-ups in Indian dairy sector everages & Food Processing Times-B Dec-I-2012 Dairy News

facing challenges in the form of M.V. Reddy, Andhra Pradesh tirring Indian milk with export growth and development of Director of Animal Husbandry, Australian technology for S value- added products. pointed out that the Indian dairy production of value-added

sector could explore imbibing items. This was the key theme On the other hand, Australia has Australian technology to increase discussed between Indian dairy lesser production of milk, but average milk production and fodder players and an Australian dairy significant expertise in the areas of management.

In a follow-up to the meeting, another Australian dairy delegation will visit Hyderabad in March during the second edition of the Dairy Show and meet with dairy entrepreneurs and farmers from Andhra Pradesh and other parts of the country.

Andhra Pradesh produces 11.6 team at a joint meeting. processing and livestock million litres of milk, but only development.The Australian team, led by about 13 per cent was being

Michael-Carter, Trade “Australia is currently the third procured by the organised sector, Commissioner, expressed interest in largest exporter of dairy products in leaving farmers with surplus exploring India-Australian tie ups in the world and our strength in production. Also, the procurement the areas of animal husbandry, dairy accessing export markets can be price here is the lowest compared development and livestock research. leveraged by India companies with other milk producing centres at

through tie-ups with Australian It was observed at the meeting that Rs 17 a litre, compared with Rs dairy firms and co-operatives,” while the Indian dairy sector is 19.50 in Maharashtra and Rs 22 in Carter said.witnessing phenomenal growth in Gujarat.

terms of milk production, it is

ndia Ratings, subsidiary of is likely to increase with and modern retail chains.In FY12, Kwality reported rating agency Fitch, has growing population. In addition, revenue of INR24.2bn (FY11: Iaffirmed New Haryana- the gradual shift in consumer INR16.1bn) with an EBITDA based Kwality DairyLong-Term preferences towards branded margin of 6.9% (6.3%) and a net rating at 'BBB+' with a Stable milk products would enable profit of INR923m (INR459m). Outlook owing to company's higher growth for the organised Kwality was incorporated in strong operational track record sector in the dairy industry.

According to agency, the rating 1992 by Kwality Ice Creams with sales and net profit CAGR of the dairy company is because (India) Limited in West Bengal. of 74% and 90% over FY07-of its position in the dairy The company was acquired by FY12 (year end March), industry, with milk procurement the current promoters in 2002 respectively.

The rating agency said, this and distribution networks. The and its registered office was reflects the stable demand for North India based dairy also subsequently shifted to Haryana.milk and related products, which supplies to FMCG companies

as Austria, the Netherlands, lobby group he EU is on course for a representing Germany and Ireland, complain smooth phasing out of dairy processors T that the continuation of the milk quotas by 1 April – which says that quota system discriminates 2015, with dairy exports set to such moves against their growing grow on the back of strong would “only lead production. Austria overshot its demand from emerging to a weaker milk delivery quota by 4.2% last countries, such as India and competitiveness year, triggering a superlevy China, according to a European of the EU dairy penalty of some €33 million, Commission report published on sector globally”.

while Ireland and the 11 December. Despite a dip in Commissioner Netherlands (both €16 mn), dairy prices this summer – a Dacian Ciolos Germany (€10 mn) and Cyprus move that prompted farmers to has also been (€1 mn) also faced significant protest in Brussels in November keen to warn the penalties. These countries call – Commission officials say the EU against for an adjustment of thresholds medium to longer term outlook undermining for butterfat as a means to limit is favourable, with the end of previous the impact of the superlevy on quotas to provide significant agreements at their national production.opportunities for growth. The Council level. “I

am optimistic second so-called 'soft landing' Meanwhile, other countries, that the milk report – which analyses the such as Poland, Spain, Slovenia package, which evolution of the EU's milk and Portugal, see ongoing talks entered into force market since the mid-2010s – on reforming the CAP as an in October, will opportunity to prolong quotas to notes that quotas are “no longer provide new protect their industries. Their relevant to limiting production” elements for calls for market protection have in most countries, with total EU strengthening the found support from French milk deliveries remaining some producer's role in Conservative MEP Michel 4.7% below last year's quota. the dairy supply Dantin, Parliament's rapporteur The quota price, paid by farmers chain”, he said. on market management, who is seeking additional quota, is The EU pushing for the reintroduction of already at or close to zero, the executive is set to a supply-management system in

Commission states. Under rules publish a further the reformed CAP. Under his agreed as part of the so-called report on the plans, the EU executive could health check of the Common sector, grant milk producers aid if they Agricultural Policy in 2008, the particularly on cut supplies by at least 5%, EU approved a gradual the impact of the while fining others in times of production increase – 1% every end of quotas on oversupply on the domestic

disadvantaged year – until the quota end date. market. The suggestion is regions, by mid-strongly rejected by the But several highly competitive 2014.European Dairy Association – a milk producing countries, such

showcase our technology in he Netherlands will set these centres and see how we up two centres in the T can help Indian farmers in field of post harvesting improving yield,” he said here for potato crop and dairy sector on the sidelines of AgroTech.in Punjab to help farmers “The officials and experts from enhance the yield.the Netherlands will hold a “One Centre of Excellence meeting with Punjab (COE) will be set up in Punjab government officials and for post harvesting of potato

progressive farmers tomorrow here to work out the modalties for setting up the COE for potato,” an official of Punjab Horticulture department said here.“Dutch can help Punjab potato growers in handling, storage and processing of potato crop,” state official said adding that assistance could also sought from

crop and second COE will be for Netherlands experts to prevent

dairy sector (genetic and animal increase in sugar content in

health),” the Netherlands stored potato crop.

Counsellor for Agriculture Punjab is a major producer of

Nature and Food Quality, Arie seed potato crop with annual

Veldhuizen, said.output of 21 lakh tonne,

These two COE are expected to covering 80,000 hectares of area

be established by next year, he under cultivation. Part of the

said.Indo-Dutch Joint Agriculture “The main objective of setting Working Group, Netherlands up COE is to better the plans to set up 8 such COEs production and yield. We will across the country.

Dutch to set up two centres, help potato, dairy sector

Kwality Dairy retains BBB+ status by India Ratings

Commission sees rosy future for dairy sector once quotas end

15

16 News everages & Food Processing Times-B Dec-I-2012

Mirinda re-creates cult song magic to introduce

new Mirinda flavours in Tamil NaduepsiCo has launched a campaign for the Tamil Nadu market featuring brand ambassador Asin, to introduce Mirinda's P

apple and grape flavours. The film is themed on a remixed version of popular Tamil film song 'Vasantha Kala Nadigalile' from the film 'Moondru Mudichu'.Featured here is a 30-second edit of the film, which shows Asin trying to get rid of her suitors to grab the apple and grape Mirinda bottles. After getting all three flavours in her hand, Asin rows away into the sunset, only to have her boat rocked by the two guys as the 'galatta' love triangle continues.The film is set on a boat in the middle of a lake, like the original 1976 song. The agency has roped in Gautham Vasudev Menon to direct the film. For the benefit of readers not tuned into Tamil cinema, the original song features in K Balachander's movie featuring Rajinikanth, Kamal Haasan and Sridevi.Senthil Kumar, national creative director, JWT India, said, “Pepsi's south-specific work across all its brands have always been very special to me and my team at JWT South. And Pepsi was the first brand to recognize the fact that the south market needs to have south-specific work and just dubbing a Hindi ad in Tamil or Telugu would not work here. This has led to many memorable commercials that have the hearts of the south Indian consumer and the brands have grown in both equity and market shares as a result.''Mirinda had started the 'galatta' series of films with Mirinda Bride, where Asin essayed the role of the bold new south Indian bride. Next came Mirinda Market, which unleashed the Chennai lingo of double meanings with Asin essaying the role of a market rowdy. This was followed up with Mirinda Auto, which took on the overcharging auto meters of Chennai. And then the brand came up with Dance Master, who was tuned into the 'galatta' mode by Asin playing a mad modern student of dance.Ruchira Jaitly, executive vice president - marketing, beverages (flavours), PepsiCo India, said, “Mirinda has always stood for great unique taste that brings alive the 'galatta packed' moments, and these two new fruity flavours add to the brand's essence that is unlimited fun and full of madness. These flavors add local familiarity to a bestselling global drink and with this we hope to dial up consumption frequency and penetration for the brand.”The launch is supported by a 360-degree campaign including radio, cinema, online and consumer engagement programmes.

Corporate News 17 everages & Food Processing Times-B Dec-I-2012

Cadbury invents chocolate that 'doesn't melt'“Here in York, our specialist number of placement students affordability of Nestlé It has recently been granted adbury is producing teams develop breakthrough and apprentices. confectionery products. funding of almost GBP 1 million chocolate that does not C technologies for chocolate, wafer Their work is essential for the Many employees who are from the UK Technology Strategy melt and can survive hot and fruit-based confectionery, and continuous improvement of the recruited and trained in York will Board for two projects to temperatures.

be assigned to other Nestlé stimulate business-led innovation The confectionery company's operations or research and in the country.scientists have invented a new development centres in the future. Nestlé's PTC in York is located Dairy Milk chocolate bar that can The PTC in York currently offers on the same site as its withstand up to 104 degrees 13 industrial Collaborative confectionery factory that Fahrenheit (40 degrees Celsius) Awards in Science and produces popular brands for three hours.Engineering (CASE) studentships including Kit Kat, Aero, and The team of scientists figured out with universities in the UK. Milky Bar.a way to break down sugar These training grants, funded by The extension work on the PTC particles into smaller pieces, the Biotechnology and Biological was completed according to the which in turn reduces the amount Sciences Research Council, principles of 'lean construction', a of fat covering them.provide students with research global standard for designing and This makes the Dairy Milk able training experience through constructing more efficient and to withstand significantly warmer collaborations between academic environmentally sustainable conditions.institutions and partner buildings and systems.However, this chocolate will only organisations. The PTC is designed to minimise be available in tropical countries The PTC also has a variety of waste of materials such as water, such as India and Brazil.research and development carbon dioxide, and energy while Cadbury said: "Production of partnerships with other local and maximising output.temperature-tolerant chocolate international universities, would allow production of chocolate ingredients and quality, texture, nutritional institutes and suppliers.chocolate-containing product coatings for ice cream products. profile, sustainability and

more suitable for hot climates, “The particularly in less economically expansion developed countries where the will enable us supply chain is ill-equipped to to intensify handle temperature fluctuations." product and Nestlé Strengthens Global

packaging Expertise in Confectionery

prototyping The company's investment in its

using PTC in the city of York will

sustainable enable it to accelerate

and high confectionery product

quality raw development for the UK and the

materials, rest of its worldwide business.

innovative At the PTC, teams of

manufacturintechnologists, scientists,

g processes engineers, food chemists,

and reliable confectioners, nutritionists and

and efficient other experts work on developing

equipment.innovative ideas for

“It means we confectionery, from new

will be able manufacturing, raw material

to develop processing and packaging

ideas more methods, to the reformulation of

rapidly from existing products.

the initial Nestlé has expanded the

concept to the miniature factory, or pilot plant,

finished at the heart of the PTC, where

product you new technologies are developed

see for a sale and tested before being used in its

on a shelf.”factories around the world.

Mr Palzer “All Nestlé PTCs around the

was joined at world provide a 'critical mass' of

the event by expertise in particular product

David Heath categories.” Stefan Palzer,

MP, Minister Director of PTC York.

of State for The company has also enlarged

Agriculture the PTC's sensory testing facility,

and Food; where panels of experienced

Fiona confectionery tasters evaluate

Kendrick, prototypes and finished products

Chairman and on a variety of factors including

Chief smell, bitterness or sweetness,

Executive and taste preference.

Officer of The investment is one of a

Nestlé UK number Nestlé has made in its

and Ireland, global research and development

and Ciaran capabilities recently.

Sullivan, Earlier this month the company

Managing opened its first R&D centre in

Director of India and the Nestlé Institute of

Nestlé Health Sciences in Switzerland,

Confectionerwhile in October it announced it

y in the UK would increase the number of

and Ireland.R&D units it has in China from

Nestlé's PTC two to four.

in York “All Nestlé PTCs around the

employs world provide a 'critical mass' of

about 185 expertise in particular product

people of categories,” said Stefan Palzer,

more than 30 Director of PTC York, at the

nationalities, opening ceremony.

including a

Food News 18 everages & Food Processing Times-B Dec-I-2012

Baby food and child nutrition market in Indiapercentage of energy spent by a elaborates on the value chain also provided. about the Government regulations he Baby Food and Child child on different activities. It is analysis of the sector. An analysis of the drivers explains for baby food and child nutrition Nutrition Market in India is T then followed by the classification A separate section on import and the factors for growth of the products which include the Infant growing rapidly owing to the of the child nutrition products based export of baby food and child industry that include increase in Milk Substitutes (IMS), Feeding increased awareness among parents on different compositions. It then nutrition products is also provided, disposable income, increase in bottles and Infant foods Amended regarding proper nutritional well moves into the market overview Act 2003 and the various being of their child. In the recent section, which provides an regulations by the Food Safety and years, the country has also overview of the global baby food Standards Authority of India witnessed growth in the number of and child nutrition market with (FSSAI).young working mothers who suffers details about its current market In the next section, different from shortage of time and has to scenario and growth. Apart from initiatives taken by the Government depend on processed child nutrition this, the section also highlights of India to facilitate growth of this products. In addition to this, some about the major global players of sector is mentioned which include major corporate activities such as this market in the infant formula modification in Packaged joint ventures, mergers and category along with their respective Commodities Rules 2011, Milk and acquisitions by some of the top market shares. The next section Milk Product Order (MMPO ) and multinationals has also taken place provides an insight about the Indian other initiatives taken in terms of in this sector, which indicates baby food and child nutrition custom duty relaxation in different prominent signs of prosperity of the market, highlighting the market size industries that are related to this baby food and child nutrition and its growth in the upcoming sector either directly or indirectly.market in the coming years.years. It also provides information The major trends identified in the The report begins with the about the major players in the sector include innovation in product introduction section which offers a Indian market with their respective variants, inclination towards health brief description about child market shares. In addition to this, and wellness foods, collaborations nutrition, its various aspects and its survey results about consumer and acquisitions and innovative role in the proper development of a preference for child nutrition brand building activities.child. After this, the various factors highlighting the growth in import number of new born babies, products and major brands in The competition section offers a determining the nutritional and export values over the years. increasing working women different baby foods categories are competitive landscape of the requirements of a child are Then, details regarding major population and increased reach and also provided. The next section players by providing their financials mentioned along with the breakup importing and exporting nations are availability due to growing retail

and key financial ratios. It also and pharma

provides elaborate information outlets The key

regarding the organizations. Key challenges

financial parameters constitute the include

financial performances of the regulatory

players which are followed by challenges, rise

business highlights. Porters Five in ingredient

Forces Analysis has been price, high

incorporated for a brief but effective pricing and

understanding of the market cultural aspects.

scenario.The next

The report concludes with a section section speaks

on strategic recommendations

Health foods Complan, Horlicks, Saffola's wrong claims exposedHealth food products and cooking oil to biscuits are facing prosecution for wrong claims.Think twice before you use a cooking oil that is good for heart and corn flakes that make you lose weight or a drink that makes your kids grow tall and have the memory of an elephant.Food Safety and Standards Authority of India (FSSAI) under the Union health ministry probed the claims of leading food and cooking oil manufacturers. Based on the report, 19 brands now face prosecution proceedings.It was found that the health value of a product in advertising and on the label were different. Food Safety and Standards Act (FSSA) says any nutrition value claims by visual or written as well as orally have to be backed by scientific data.

The FSSAI verified the labels on various food products, their advertisement in the media as well complaints from consumers. Based on this the companies were asked to come up with proofs to justify their claims.

FSSAI's three-member committee went through the replies and gave the report and ways to stop these companies from indulging in such acts. It asked the regional officers empowered to start prosecution. These products targeted the kids and promised height increase, more stamina and increase in memory power. For the adults, the promise of lowering cholesterol, improving cardiac health and solving obesity related issue were the common claims.

Complan, a health drink brand, could not produce any data to show that those drank this grow twice faster. Horlicks with claim to make children “taller, stronger and sharper” too had no evidence. Ironically both these products marketed in the West makes no such claim.

Only in India, kids are used on the cover of the food product Complan and Horlicks. Complan Memory which has images of kids with books has been booked for wrongly giving the impression that this drink gives students more memory power.

Kellogg's Special K cornflakes is marketed as the ideal breakfast for those wanting to lose weight since it is a low-fat food. There is no scientific study to back this claim. Saffola oil is good for cardiac care and Britannia Vita Marie biscuits reduce cholesterol were the claims. None of them are found to have any such health benefits.

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everages & Food Processing Times-B Nov-I-2012 19 Corporate News

market trends and given that 10% from confectionery over mix for us would be according innovation is concerned, so you ndia's largest biscuit maker snacks are growing much faster the long-term”. to the category sizes. Biscuits as will see FMCG companies Parle Products Pvt. Ltd is I a category is (significantly) diversifying into related product pushing aggressively into

higher than snacks right now. So categories and most big snacks and sweets as it seeks to we will continue launching new companies are already doing shield itself from a slowdown in products in the premium biscuit that,” said Anand Ramanathan, the growth of biscuit sales.category.”Within the next three years, associate director at consulting Britannia sells breads, health Parle expects confectionery and firm KPMG. “ITC has been snacks, namkeen, oats and other snacks to generate 16-18% of its doing it aggressively but even foods apart from biscuits. ITC sales from less than 10% the others have been doing it in also sells various products such a small way.”currently, saidPraveen Kulkarni, as ready-to-eat foods under the To increase its focus on snacks, general manager (marketing).Kitchens of India brand, Bingo! Parle has used its wide network “Rather than looking at Parle as potato chips and mint candies. of wholesaler contacts to set up a biscuit company, we want to Neither Britannia nor ITC a separate distribution channel be seen as a food company,” disclose sales of specific for the category, Kulkarni said.said Mayank Shah, group

“Parle has a very good products.product manager. “So, while we “The core capability for FMCG distribution network. They reach will further consolidate our (fast-moving consumer goods) towns, not just cities. So they position as a biscuit major, the companies is distribution which have the experience and the focus would be there on new can be leveraged across infrastructure to scale up fast,” than biscuits, Parle would “like Shah said the firm will tweak its things such as the western and products. There is not much of a Ramanathan said.60% of its sales coming from business model according to traditional snacks that we have challenge as far as product biscuits, 30% from snacks and market trends. “Ideally, the sales launched.”

Parle gets over 90% of its revenue from popular biscuit

brands such as Parle-G, Hide &

Seek and Krackjack. Compared

with rivals such as Britannia

Industries Ltd and ITC Foods,

the maker of Sunfeast biscuits,

Parle has been slow in expanding into new product categories. Over the past few years, Parle's main focus was growing its biscuit sales through increased distribution and new products as demand for biscuits was particularly strong from 2007 to 2010.However, this year, biscuit sales have slowed sharply. According to industry body Indian Biscuit Manufacturers Association, biscuit volumes grew just 9% in the six months to September, a drop from the 11-16% rise in the previous years. The soaring costs of key ingredients such as wheat and sugar forced biscuit makers to hike their prices, hurting demand. Parle's biggest

rival, Britannia, the maker of

Tiger and Good Day biscuits,

reported at least five straight quarters of decline in biscuit volumes.Parle's biscuit business has grown much slower than the 25% jump in sales of snacks as well as the 15% rise in sales of

sweets such as Mango Biteand

Melody, marketing head

Kulkarni said.Parle recently launched its Indian snacks Parle Namkeen to compete directly with

Haldirams offerings. It also sells

chips under the Parle Wafers,

Musst and Monaco Smart Chips

brands.Given the slowdown in biscuit demand, Parle and Britannia will have to make a stronger and quicker push into new product categories, analysts say.Parle chairman Vijay Chauhan,

in an interview Mint published on 28 November, forecast revenue at about Rs.10,000 crore for 2012-13, which would be a 28% rise over last year.Shah said that based on current

'

As biscuit growth slows, Parle moves faster into snacks, sweets

20 everages & Food Processing Times-B Dec-I-2012

21 everages & Food Processing Times-B Dec-I-2012 Corporate News

Vadilal enters flavoured milk market, looks at 5-7% share in three years

ce-cream and frozen processed foods major Vadilal Industries Limited has entered the Indian flavoured milk market with its new Power Sip under the Vadilal Quick Treat umbrella brand. I

This new initiative is part of Vadilal's long term strategy to offer a wider range of frozen food products to consumers and its first major product launch in the beverages market, a press release from the company said.

According to it, the potential for growth in the Indian flavoured milk is very good with an estimated annual growth rate of 15-20 per cent."Vadilal will utilise its strong ice cream retail distribution network to make this new product a popular brand across India over the next few years," it said.The release said Power Sip will come in a 180 ml bottle priced at Rs 18 with three flavours - rose, elaichi and kesar. More flavours like chocolate, badam and coffee will follow in a few months. No preservative are used in

Power Sip and it has a long shelf life of six months, it said."Flavoured milk is largely an impulse category product and Vadilal will focus on making Power Sip available at tourist places, railway stations, bus stands, airports, schools & college canteens, etc. This brand targets people on the move who seek quick, healthy and hygienic way to refresh and re-energise. In today's changing and busy lifestyle, market for beverages in India is growing fast. Flavoured milk has become an experience which is relished by one and all. It has a huge potential to become a regular drink among various age groups," the release said.Mr. Devanshu Gandhi, Managing Director of Vadilal Industries Ltd said, “Power Sip is being launched in Ahmedabad first and over the next six months it will be sold across Gujarat. Thereafter, we will introduce this new product in Maharashtra, Madhya Pradesh and Rajasthan. Rest of India will follow in the second and third years. Our target is to capture 5-7% market share over the next three years and make Power Sip a Rs 30 crore plus brand. This is our first major launch in the non-ice cream dairy sector and we plan to introduce more products in this space in future.”Mr. Rajesh Gandhi, Managing Director of Vadilal Industries Ltd added, “After establishing the company as the second largest ice cream player and a leading player in the frozen processed foods market, we are now strategically looking at those segments which offer us value chain benefits and strong growth. The flavoured milk segment fits in well with our wide distribution network and a strong projected growth rate of 20% per annum in future. With an extensive distribution network of over 50,000 retailers, 250 stockkeeping units (SKUs), 550 distributors and 32 CNFs across India, we are well placed to make Power Sip a successful national brand.” The release said Vadilal has strong backward linkages with the farmer community for milk procurement for ice creams at its plant near Ahmedabad. From a small outlet in Ahmedabad over 80 years back, Vadilal Industries Ltd has today emerged as India's second largest ice cream player. The company is also one of the largest frozen processed food players in India with significant exports of frozen vegetables and ready to eat snacks, curries and breads.

Output of food products and

beverages set to fall marginallyThe output of manufactured food products and beverages is set to fall marginally this year after Maharashtra and Karnataka, the two major sugar producing states are likely to produce less sugar during the peak sugarcane crushing season (November-March) on account of lower sugarcane availability. Moreover, the diversion rate of sugarcane towards the manufacture of sugar is also expected to fall in Maharashtra. This is expected to pull down the country's total sugar production by 10.3% during the current fiscal.

Output of edible oils like groundnut oil and cottonseed oil is expected to fall by 5.3% and 8.4%, respectively, during 2012-13. A shortage in groundnut and cotton production and ban on the imports of oilseeds is likely to lead to a fall in the production of these variants. "We expect output of tea and biscuits to fall by 0.9% and 2.9% respectively, during the year," CMIE ( Centre for Monitoring Indian Economy) said in its latest report.

But inspite of a fall in the above mentioned commodities, a healthy rise in the output of majority of the other commodities is likely to arrest the fall in the overall index. "We expect output of manufactured food products like milk and milk powder, instant food mixes and coffee to rise by 2.5%,'" CMIE said.

22 everages & Food Processing Times-B Dec-I-2012

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SC seeks records of food safety panel on soft drinksThe Supreme Court sought records of a Food Safety and Standards Authority of India's (FSSAI) committee which said carbonated beverages do not pose health hazard and there were no benzene residues in the soft drinks.Justice K.S. Radhakrishnan and Justice Dipak Misra called for the records of the FSSAI's technical committee after counsel Prashant Bhushan said the authority's Sep 12 order was given by its committee on advertisement and labelling, not by the scientific panel on food additives.As Bhushan focused on the health hazards of carbonated beverages, Justice Radhakrishnan observed that the "best course is to educate people not to consume beverages.""All cricketers are promoting soft drinks on television," he said.Assailing the order which was submitted to the court, Bhushan said the order, issued Sep 12 by FSSAI assistant director Kamal Kumar, was like affixing the authority's stamp on a report by soft drink manufacturers.Bhushan, appearing for petitioner Centre for Public Interest Litigation, told the court that the order said benzene residue in carbonated beverages was formed only under certain conditions when agents like benzoates and ascorbic acid were present together with heat, ultraviolet light and metallic ion mixture."However, in the absence of benzoic acid and ascorbic acid together, benezene residues are not generated (in carbonated beverages)," the order said.It said that according to studies by Indian Council for Medical Research, the consumption pattern of the beverages was only 500 ml per day in a "worst case scenario which do not appear to pose any health hazard."The order said Indian Beverage Association had confirmed to the FSSAI that in India, benzoic and ascorbic acids were not present together in the beverages.Seeking the minutes of the technical committee which had a hearing for eight days, Bhushan asked if the FSSAI had itself done any test to determine the presence of benzoic acid in carbonated beverages.Bhushan told the court that the FSSAI was not accepting the findings of its own lab in Ghaziabad.Senior counsel K.K. Venugopal, who appeared for one of the respondents, told the court that all the prayers made by the petitioner NGO have been satisfied after the union government enacted a law comprehensively addressing the issues raised in the petition.He told the court that it was nearly eight years since the court was seized of the matter.Additional Solicitor General P.P. Malhotra, who appeared for the government, said the technical committee was authorised to look into the additives. He said Bhushan had appeared before the committee on five occasions but had never raised this objection.However, Justice Radhakrishnan said the issue raised by Bhushan was serious and called for the records of the meetings of the committee.

The Food Safety and Standards Authority of India (FSSAI), the apex food safety body under the aegis of the Ministry of Health, has appointed product testing and certification firm Intertek to undertake testing, inspection and auditing of food business operators (FBOs) in the country.

The Intertek food laboratory in Gurgaon has been accredited by the National Accreditation Board For Testing Laboratories ( NABL). The labs capabilities cover residual pesticides, antibiotics and heavy metals, among others.

FBOs need to test their food samples at defined intervals every year, a statement issued by the organisation said. In addition, Intertek will be responsible for multiple factors inspecting food businesses, ranging from basic hygiene requirements, to periodical audits. The accreditation has authorised Intertek to give away food safety management system certificates to food business operators.

"We have experienced change in the behavior of people and with more awareness coming in," Rajesh Saigal, MD, Intertek India said in a statement.

The FSSAI Act, implemented last year in August, requires all food manufacturers to obtain necessary licenses and comply with mandatory food safety and hygiene standards mentioned in the act.

FSSAI appoints Intertek to execute food safety testing

Beverages News

23 everages & Food Processing Times-B Dec-I-2012

Consulting EditorBasma Hussain

everages & Food Processing Times-B Dec-I-2012 24Back Page