food eu 6

www.foodsolutions.eu.com • Vol 4 Issue 1

THE APPLIANCE OF

SCIENCE

RECIPE FOR SUCCESSWith Royal Wessanen CEOAd VeenhofPage 38

Werner Bauer:“We had to

transform evenour most basic

researchfacilities intonutrition and

health researchcentres ”

Werner Bauer explains how a focus on research anddevelopment has driven Nestlé’s recent growth Page 30

RUNNING LIKE CLOCKWORKInside Swiss food giant Migros,with CEO Herbert BolligerPage 66

RISING FOOD PRICESThe UN’s Jacques Diouf addressesthe issues44

R&D INNOVATIONGeneral Mills’ Jeff Bellairs onwhy open innovation worksPage 56

COVER FSEU6 viz4:aug08 14/8/08 13:15 Page 1

TO KEEP US COMFORTABLE WE STRONGLY ADVISE YOU TO

FANCOM AD IFC.indd Sec1:2FANCOM AD IFC.indd Sec1:2 14/8/08 15:06:1314/8/08 15:06:13

READ THE INTERVIEW WITH PAUL SMITS ON PAGE 117

FANCOM AD IFC.indd Sec1:3FANCOM AD IFC.indd Sec1:3 14/8/08 15:06:4314/8/08 15:06:43

Agriflex_AD.indd 2Agriflex_AD.indd 2 29/7/08 09:40:5729/7/08 09:40:57

Agriflex_AD.indd 3Agriflex_AD.indd 3 29/7/08 09:41:0629/7/08 09:41:06

Headquartered in China, the company is mainly involved

in developing, manufacturing, and marketing coated fi lms,

anti-counterfeiting laser holographic fi lms, BOPP fi lms, as

well as supplying customized color printing and packaging

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pany who has 20 years in fi lm manufacturing, Shiner has

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with a total annual output of 17,200 tons/year (will increase

to 28,100 tons/year at the end of 2008), which can meet

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for 2008 can reach 70M USD, 30% of which is contributed

from international sales to 18 countries.

ProductCoated fi lm is a functional packaging fi lm which is mainly used

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er common fi lms, coated fi lms have superior barrier properties

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package goods to extend their shelf life (our coated fi lms can

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Unique One-stop ServiceAs the largest coated fi lm manufacturer in China, also the only

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Integrated Film & Specialty Packaging

Shiner International, Inc. ( NASDAQ: BEST, website: http://www.shinerinc.com ) is an emerging global leader in fl exible packaging fi lm industry engaging in providing one-stop packaging solutions for food company.

Company Overview

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Base Film Speciality Film Printing Packaging

Product

Name

EV 0.5

1.05

6.6

20

0.2

0.032

0.068

0.43

1.3

0.013

20

4.8

2.7

4.5

0.6

1.29

0.31

0.17

0.29

0.039

VPA

HPA

MWA

VMEA

Structure OTR23ºC(73ºC), 0%RH

ASTM D3985

cc/100in2.24hr g/100in2.24hrcc/m2.24hr g/m2.24hr

WVTR 38ºC(100ºC),

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Key Specifi cations

PVOH CoatingPET Film

Acrylic Coating

Acrylic Coating

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White Cavitated BOPP

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PVOH Coating

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Direct Sales RegionsMarket reached via converter and distributor

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• Competitive Price for Purchases

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• Strong Technical Support

• Promised After-sales Service

Please Visit Our Website for More Information: Http://www.shinerinc.com

or Contact International Sales Staff:Ms. Jan Xie, International Sales Manager Tel: +86(898)6858 1565 / Mobil: +86-138075 63637 E-mail: [email protected] / [email protected]

Global Market

Broad Industry Acceptance

Photos of Films and Its Applications

Reasons For Your Choice:

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• More than 50 major clients in over 15 countries.

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• Westfarmers (Australia)• KOROZO Ambalaj (Turkey)• American Multiplastics INC (USA)• Signature Flexible Packaging Inc. (USA)• CLP Industries Ltd. (Israel)• Iellefl ex (Italy)• Jamjoom Packaging ( Saudi Arabia)• Group Mexicano Imperial S.A. DE C.V ( Mexico)• Vinataba (The Vietnam Tobacco Corporation) • HSU FU CHI• Sony Music• Warner Music


Sandvik.indd 1Sandvik.indd 1 29/7/08 09:54:3829/7/08 09:54:38

FROM THE EDITORCan science solve the food crisis?Food shortages. Fuel and commodities price increases. Panic buying. Can cutting-edge advances in food technology provide the answer to the industry’s woes?7

Whether you blame demographic shifts, protectionist policies, climate

change or just plain old bad luck, one thing is certain: the current global

food system is not working. More than 860 million people around the

world suffer from hunger, and of those, about 830 million live in devel-

oping countries. Even the developed economies of Europe and North America are feel-

ing the pinch; where once the EU was flooded with oversupply, today the mountains of

butter have gone, the grain silos stand empty and the lakes of milk have been drained.

If the truth be told, the current crisis is probably down to a combination of all

the above factors – a perfect storm of changing tastes, short-sighted decision-mak-

ing and poor weather that has been amplified by current global economic pres-

sures and helped to drive demand (and subsequently, prices) up. And it’s not just

food shortages that are causing sleepless nights for policy-makers and industry

executives alike: the rising obesity epidemic and the requirement for better nutri-

tion also need addressing. Over 145 million people in the WHO European region

are obese, while 23 million are undernourished.

Science is just one area where significant advances are being made to tackle

these issues – and nowhere are the R&D challenges being addressed more im-

pressively than at Nestlé, the world’s largest food company. As Chief Technology

Officer, Werner Bauer commands a whopping €1.1 billion budget and is leading

some of the most innovative developments in the industry. “The longer we live, the

more influence food has on our future health,” he explains. “We now need to take

a much more holistic approach to how food and science inter-relate, looking at how

nutrition and lifestyle choices impact upon metabolic health.”

Indeed, nutrition is proving to be a hot topic amongst the executives we spoke

to for this issue. Ad Veenhof, CEO at Dutch food producer Royal Wessanen, explains

how his company is re-focusing on healthy food; while Herbert Bolliger, CEO at

Swiss supermarket giant Migros, outlines why nutrition and quality play a key role

in maintaining the company’s position as one of the world’s most admired firms.

So with science influencing our eating choices for the better in terms of health,

what role can it play in solving the issue of chronic food shortages? Many believe it will

be critical, whether it be breeding staple crops such as wheat, rice, maize and soy to

be more pest and weed-resistant, or genetically manipulating crops to provide boons

that nature cannot match.The jury’s still out on such applications, but given the cur-

rent situation perhaps the theory behind them is worth a second look.

Whisper it quietly, but the industry is worried. At the recent United Nations

Food Security Summit in Rome, Secretary-General Ban Ki-moon announced the

formation of a UN task force to address the problem of mass hunger and food

shortages, stressing the need for scientific advances in the long-term. Clearly, tech-

nology has a huge role to play in all our futures.

Ben Thompson

Senior Editor

“The next big advance to reshape thefood industry has already been invented,and our goal is to be the first to find it”Jeff Bellairs, Director of External Innovation, General Mills (Page 56)

“More research in agriculture andknowledge building will enhance pro-ductivity growth”Marianne Fischer Boel, EU Commissioner for Agriculture (Page 88)

“We must seek sustainable and viableglobal solutions that will narrow the gapbetween global food supply and demand”Dr Jacques Diouf, Director-General of the Food and Agriculture Organisation (Page 144)

EDITORS NOTE FSEU:aug08 14/8/08 13:44 Page 7

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38 Planning for healthy growthIn just five years, Ad Veenhof has turned Dutch

producer and distributor Royal Wessanen into one

of the continent’s business success stories – and

he doesn’t plan to stop there. Veenhof is on a mis-

sion to become the market leader in quality health

food products – and most importantly, to prove to

a sceptical public that such foods can be delicious.

44 Coca-Cola’s health kickDanny Strickland, Chief Innovation and

Technology Officer at The Coca-Cola Company,

discusses the strides the world’s largest bever-

age company is making in

the health and wellness

arena, as it expands its geo-

graphic reach and global

portfolio with a newfound

health consciousness.

66 Succeeding intough timesIn an increasingly competitive

and challenging market,

where competitors are slash-

ing prices, food costs are ris-

ing and consumers demand more information and

choice, surviving in the food retail industry is

tough. Herbert Bolliger, CEO of Swiss food giant

Migros, explains what it takes to stay at the top.

COVER STORY The appliance of scienceCan science help solve the world’s food crisis? Nestlé certainly thinks so. In an

exclusive interview with Food Solutions the firm’s Chief Technology Officer

Werner Bauer discusses why R&D is changing the face of food research, and

how Nestlé is leading the way.

9CONTENTSLEAD FEATURES

30

VOLUME 4 ISSUE 1 Q3 2008 www.foodsolutions.eu.com

44

CONTENTS FSEU:fst 14/8/08 14:51 Page 9

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48 Lipid NutritionMeeting the health needs of a growing market

56 Switching on to R&D successJeff Bellairs looks beyond the traditional

boundaries of the enterprise

60 Less acrylamide, same tasty foodBy Thomas Erik Nilsson

64 The new whey and permeatedrying processHenrik Jensen on new drying processes

72 Beating the fraudstersFood Solutions investigates the fight against

food fraud

74 Using near infrared spectroscopyBy Holger Keller

76 A light at the end of the tunnelFrançoise de Goeijen looks at new safety

regulations

78 Safe and soundDr Paul Young on food testing

80 Cold chain management

82 The future of food safety Jorgen Schlundt looks at what can done to

open up communications

86 The ultra performance food safetysystem

52 Ferid Haji, Jungbunzlauer54 Dr KW Quirin, Flavex 104 TedDickin, UTO 106 Dr Yuesea EricChen, Raycome International Corp

ASK THE EXPERT

66

56

11CONTENTSFOOD SOLUTIONS EUROPEVOLUME 4 ISSUE 1 Q3 2008 www.foodsolutions.eu.com

82

“Our open innovation programmehas opened our eyes to thetremendous innovation potentialthat exists outside the company”

General Mills’ Jeff Bellairs


92 Animal health

ROUNDTABLE DISCUSSION

24 Leslie Knudson 142 Rebecca Goozee

COLUMNS

12CONTENTSFOOD SOLUTIONS EUROPEVOLUME 4 ISSUE 1 Q3 2008 www.foodsolutions.eu.com

92

78

88

88 Agriculture for the 21st centuryMarianne Fischer Boel outlines agricultural

policy challenges

102 Feed the worldWith Roger Gilbert

108 A fresh perspectiveAndroula Vassiliou on strategies for better

food safety

112 Keeping your coolRobert Arendal explains the benefits of an effi-

cient supply chain

114 Dehumidification: the bestsolution for storing foodBy Christine Modla

117 Balanced technologiesQ&A with Paul Smits at Fancom

118 Energy management in flour mills

121 Belting solutions By Olaf Heide

124 Moving hygienic belting forwardWith Ian Hutcheson and Staffan Karlsson

130 Shaping plastic packaging

132 The traceability issueBy Marty Kerluk


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FS MAGAZINE

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CREDITS FSEU6:aug08 14/8/08 13:07 Page 14

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16 www.foodsolutions.eu.com

16UPFRONTP18 The Burning IssueP20 Issue in NumbersP22 The Five-Minute ExecutiveP24 Comment: Leslie KnudsonP28 Around the World in 80 Days

The World Bank now believes that some

33 countries are in danger of being

destabilised by food price inflation,

while Ban Ki-Moon, the UN Secretary-

General, said that higher food prices risked wip-

ing out progress towards reducing poverty and

could harm global growth and security. Speaking

at the United Nation’s Food and Agriculture

Organisation (FAO) conference in May, Ban said

world farm production will need to rise by 50

percent by 2030 to meet growing demand.

Meanwhile Jacques Diouf, the FAO’s Director-

General, said that US$30 billion a year is need-

ed to relaunch agriculture in the developing

world and avert future threats of food conflicts.

Even Europe is feeling the pinch. For

decades, the industrialised world has enjoyed

the luxury of producing far more milk, butter

and wheat than its citizens could consume, ex-

porting or even destroying the surplus. Some

experts believe this luxury has now come to an

end. Europe’s mountains of butter have been

depleted, its grain silos emptied and its lakes

of milk drained. “The era of overproduction is

GLOBAL FOODCRISIS LOOMS

UPFRONT FS EU6:12june 14/8/08 11:55 Page 16

17www.foodsolutions.eu.com

behind us,” says Stephane Delodder, an agricul-

tural specialist with Rabobank in the Dutch city

of Utrecht.

Indeed, the pressures in global food markets

have grown so intense that, for the first time in

its history, the United Nation’s World Food

Programme is finding it hard to procure supplies

of essential commodities. Some countries in the

emerging world are now placing so many export

controls on items such as wheat to conserve

them for their own populations that they have re-

fused to release supplies to the UN.

THE RESULTS

Increase in global food pricessince 2000, according to the

latest World Bank figures

75%

New figures released by the CBI

show that dining out has fallen to

a seven-year low – but restau-

rants that have embraced online

bookings are bucking the trend, according

to toptable.com.

The number of people booking through

toptable.com has soared 100

percent in the last year, de-

spite the credit crunch. The in-

crease in the profile of TV

chef’s such as Gordon

Ramsay and Jamie Oliver has

sparked an appetite for good

food at affordable prices. The

figures come in contrast to

the CBI research, which

shows that the volume of

business for the consumer services sector

has fallen sharply in the last three months,

with the balance of 44 percent the lowest

since November 2001.

Michelle Smith, editor of toptable.com,

said: “In spite of the credit crunch, diners

seem to be continuing to make the most of

what the UK’s gastronomic scene has to

offer. However, there is no hiding from the

fact that this is a time of economic instabili-

ty and personal finances are becoming more

and more stretched. This

means we’re seeing a real in-

crease in appetite for services

like toptable.com that can

allow consumers the luxury of

eating out for less.

“Money is undeniably

tighter for many diners, so

they’re becoming more choosy

about where they eat and how

much they pay for it. topt-

able.com provides a unique resource for find-

ing the best restaurants at the best price, and

we’re expecting to see continued demand for

the service going forward.”

Number of people in 78 coun-tries dependent on handoutsfrom the WFP facing reduced

rations this year

73million

Expected increase in theworld’s population by 2050;global demand for food will

double by 2030

Threebillion

Number of Indian farmers whotook their own lives last yearas a result of grain shortages

and farming debts

25,000DINERS TURN TO INTERNET FORQUALITY AND VALUE

It was meant to be a meeting to dis-

cuss solutions to the global food

shortage – but that didn’t stop world

leaders sitting down to an 18-course

gastronomic extravaganza at the recent

G8 summit in Japan. The dinner – plus six-

course lunch – at the summit of leading in-

dustrialised nations on the island of

Hokkaido included delicacies such as

caviar, milk-fed lamb, sea urchin and tuna,

with champagne and wines flown in from

Europe and the US. The extravagance of the

menus attracted widespread condemnation.

“It is deeply hypocritical that they should

be lavishing course after course on world

leaders when there is a food crisis and mil-

lions cannot afford a decent meal,” said

Dominic Nutt of the charity Save the

Children. “If the G8 wants to betray the

hopes of a generation of children, it is going

the right way about it. The food crisis is an

emergency and the G8 must treat it as that.”

G8 BANQUET HARD TO SWALLOW

The consumer services sector hasfallen sharply, with

a balance of

the lowest sinceNovember 2001

44%



Thinking long-termMohammed Saeid Noori-Naeini,Independent Chairperson of the FAO Council

There can be no doubt that many of the

underlying pressures that are contributing

to this situation are with us to stay. Indeed

we are glad some of them are with us

to stay.

We are glad that more and more people

can afford a more varied and nutritionally

balanced diet. We are glad that there is com-

petition for land, for improved housing and

improved leisure. But we cannot be glad that

in every society, even the richest, there are

losers and that many of the poorest coun-

tries are overall worse-off and facing a

greater challenge in feeding their people.

We need more production, we need

cheaper food and we need the means for

people to obtain food – the most basic of all

rights after the right to life itself. All politics

are local, but we must think long-term local

as well as short-term local. We must think

comprehensively, not slogan by slogan, cri-

sis by crisis.

Shifting focusLennart Bage, President of the InternationalFund for Agricultural Development

Today, the world is literally paying the price

for its past complacency. As we face the prospect

of insufficient supply to meet growing demand,

and with prices predicted to remain high, the

focus needs to shift back on agriculture.

Much of the response to meeting increasing

demand will come from large commercial farms,

mostly in the North, which already enjoy access

to financial and technical services and markets

for inputs and produce. But a major part of this

extra production must come from smallholder

farmers, who do not yet enjoy such access and

must therefore be the focus of governments’ ef-

forts and international support.

There are around 450 million smallholder

farms worldwide measuring two hectares or

less, home to approximately two billion people.

These small, family-based farms have tremen-

dous, under-utilised capacity. With help, they can

increase their production and productivity, raise

their incomes and, at the same time, contribute

to greater food security.

Historic opportunityJosette Sheeran, Executive Director of theWorld Food Programme

The world is producing more food for

more people than ever in history. In less than

40 years, the world has cut the proportion of

hungry in half, from 37 percent in 1969 to 17

percent in 2002.

And I believe the high food prices and in-

creasing demand present a huge, historic op-

portunity for developing world farmers. By 2050,

with growth demand, the world needs to pro-

duce twice as much food. This simply cannot be

done without huge investment in the world’s

poorest farmers by governments, the private

sector and the international community.

But high food and fuel prices now threaten

to short-circuit this potential and undo many of

these hard-earned gains. WFP was able to buy

40 percent less food today than we could eight

months ago with the same contribution, just be-

cause of soaring food and fuel prices. Only

by pulling together, in the spirit of global inter-

dependence, can we respond strategically to

this challenge.

THE BURNING ISSUEImpact of rising food pricesAs demand continues to outstrip supply, how can we address the issue ofsoaring food prices? Three experts at the recent FAO Food Security Summitin Rome provide their views.18


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The frenetic increase in raw material prices (cereals, maize and

sugar) is a cause of concern worldwide, with continuous in-

creases in the price of basic foodstuffs such as bread and

pasta. Consumers are dismayed and feel impotent when

faced with the speculation that lies behind the phenomenon.

The major food industries specialised in the transformation of

these products must increase their prices to make up for a drop in

production, as well as lower profit margins.

The solutions adopted by Agriflex SRL guarantee the same level

of quality and reliability, placing particular emphasis on containing the

plant’s running costs, thus helping customers limit investment and re-

duce their operating costs.

The Agriflex solution, launched a few years ago, is based on a

meticulous policy of corporate costs reduction, creating a more

streamlined and thus more efficient production line.

The industry is faced with two challenges. How can we contain

the increase in production costs when faced with 50, 60 or 100 per-

cent increases in the raw material cost? And how can we do so

without lowering the levels of quality, both in terms of food safety

and product quality, and in terms of equipment functionality and re-

liability – especially with regard to regulations, both concerning food

and other applications, and the attention to quality and full cus-

tomer satisfaction?

Automation is surely the answer. Thanks to the amazing progress

made in this field, Agriflex has developed dedicated software, com-

plex in its structure and development, but simple and user-friendly.

Such an investment pays off in the short-term (saving on new instal-

lations) as well as in the medium/long-term (drastic reduction in op-

erating costs). Agriflex’s answer is based on 30 years’ experience.

General Mills has seen a 300%increase in the number of innovation

concepts since G-WIN began (p56)

In the EU12 new member states,

agricultural income has risen by

40% since 2003 (p88)

The number of Nestlé factories totals

(p30)480

The Cool Chain Associationwas founded in

(p112)2003

Royal Wessanen’s revenues were

in 2007 (p38)€1.5 billion

Total world feed ouput is around

tonnes (p102)614million

HIGHER QUALITY, LOWER COSTS: TOO GOOD TO BE TRUE?

2ISSUE INNUM8ERS 3

86

Food prices are likely to stay high for the next two to three years until

stocks are replenished, the United Nations’ food agency has said.

The Food and Agriculture Organisation (FAO) told politicians in

Canada that prices should ease as stocks build again, according

to a Reuters report. FAO commodities economist Abdolreza Abbassian

said below-average yields and drought had been a more significant fac-

tor in rising grain prices than corn being diverted to biofuels.

Source: just-food.com

GLOBAL FOOD PRICES TO STAY HIGH



• Retail giant Tesco has announced its intention to develop a

wholesale cash-and-carry business in India, with an intital in-

vestment of up to UK£60m in the first two years. The busi-

ness will be based in Mumbai.

• Nestlé posted strong sales and earnings growth in the first

half of this year. Group sales rose by 3.8 percent, while oper-

ating profit was up 6.1 percent.

• Kraft Foods has sold its salted snack business in Scandanavia

and the Baltic states to a Norwegian private equity fund.

NEWSBITES

Rising fuel prices meantransportation costs now

represent

of the total expenditure forthe largest US emergency

food aid programme

Last year

of the US maize crop was turned into ethanol

to fuel vehicles

You could feed a personfor

from the grain that pro-duces just one tank of fuelfor a sports utility vehicle

1 year

The European Union isaiming to make biofuels

of all transport fuels by 2020

25%

10%

Increased sales have led to a jump in annu-

al profits at Sainsbury’s, the UK’s third-

largest grocer. The company booked

underlying pre-tax profit of UK£488m for

the 12 months to 22 March, up

28.4 percent on the year. Including

one-off charges, ranging from

costs incurred during last year’s

aborted takeover of Sainsbury’s

by Qatar-backed fund Delta Two to

the inquiry into price-fixing in the

UK dairy sector, pre-tax profit

inched up 0.4 percent to

UK£479m. Revenue was up 5.8

percent to UK£19.3bn, with like-for-like sales ex-

cluding fuel rising 3.9 percent.

Chief executive Justin King said

Sainsbury’s had “fulfilled the commitments”

the company made when it launched its turn-

around strategy – dubbed Making Sainsbury’s

Great Again – in 2004. He said: “We have now

reported 13 consecutive quarters of like-for-

like sales growth and

achieved UK£2.7bn addition-

al sales by March 2008

against the original stretching

target of UK£2.5bn. This is a

great achievement in a chal-

lenging market. Our sales

growth is also reflected in

substantially improved profits

and operational gearing is

coming through. We have good momentum as

we now focus on taking Sainsbury’s from re-

covery to growth.”Source: just-food.com

SAINSBURY’S JUMP IN FY PROFITS FUELLING THE RISEIN FOOD PRICES

Source: Scottish Sunday Herald

65%Sainsbury’sbooked underlyingpre-tax profits of

UK£488million

The US supplies more than

of the world’s maize exports

60%



Budget pressure is a day-to-day reality. You

get it once a year when you set the budget

and you get it every quarter when you re-

view your results. Where you spend your

time is the best indicator, and I spend the

majority of my time building relationships,

looking at where our priorities are, where we

should focus and why we’re doing what

we’re doing.

I can’t meet everyone face-to-face – but

we’ve certainly got a handle on many new

technologies, such as video conferencing,

live meeting technology and collaboration

software, so you can start to connect with

people. And if you cant do that in IT then

frankly there’s a big issue.

Leadership is lots of things: you have to

own the vision, you have to stand for some-

thing, you have to make it through the tough

times when it’s hard, you have to be visible, you

have to be accountable. You have to have a clear

vision, people have to see what you stand for,

trust you and believe in you.

IT spend should demonstrate that we’re driving

efficiency. If you can demonstrate that to the rest

of the organisation then there’s a degree of com-

fort that the shape of what you’ve got should be

about right.

We have a mission statement, like everybody

else. Ours is very clearly worded about what we’re

going to do and how we’re going to do it. Rather

than efficiency, we want to move to growth. IT in

Unilever has been focused on driving efficiency

and taking cost out. We want to shift that focus to

growth, which is much harder. If you do it well and

are successful it’s much more important.

We don’t want a million different ways of doing

something. We want to have a clear architec-

ture and sets of partners that we’re going to

work with to get us there. The kinks are about

shifting focus into growth and it’ll be gradual

but we must start to do that, and we must make

what we start to deliver much simpler.

Ultimately we don’t invent anything inside

Unilever IT anymore. We bring the outside in.

I don’t design SAP, I buy SAP and then I config-

ure it to fit my business. We don’t write any-

thing from scratch anymore. You’ve got to start

saying “whose technologies am I going to

bring in, and how am I going to make sure I al-

ways bring those guys in instead of the 12 oth-

ers who could be doing it?” Part of that was

informed by our view that the world is chang-

ing out there, there are going to be fewer and

fewer big guys.

THE FIVE-MINUTE EXECUTIVE

22 The food sector goes high-tech Neil Cameron, CIO of Unilever, talks about technology, IT spend and theimportance of clear architecture with Food Solutions.


3SpackTech_AD.indd 13SpackTech_AD.indd 1 29/7/08 09:40:3329/7/08 09:40:33


laying off of 12,000 employees, impacting

all major markets.

Quite simply, what made Starbucks

work is gone. Its ‘thing’ was that at one

time it was a special luxury treat or ex-

perience, but its over-saturation makes

it no longer a novelty and the rushed

convenience-driven environment of the

stores doesn’t make it feel special any-

more. Its segue into speed and conve-

nience is exactly why places like

McDonalds are now giving the higher-

end coffee retailer a run for its money.

It all goes back to business basics,

and a recent quote in a media release by

Wal-Mart President and CEO Eduardo

Castro-Wright says it all: “Our underlying

business is strong because of price lead-

ership, clearly defined product offerings

and a better store experience that con-

tinues to drive customers to our stores.”

Starbucks take note. Sticking to its

brand identity and continuing to build

on its customer loyalty, the discount re-

tailer reported a 58 percent surge in

same-store sales for June, beating ana-

lyst expectations with an increase of 5.8

percent, and forecasts a two to four per-

cent improvement for July sales.

The bottom line is that in today’s

cost-conscious consumer environment,

value is more important than ever. Value

goes deep into brand identity, product of-

ferings, pricing and the kind of in-store

experience offered. As of right now, all of

these crucial ingredients seem to be in

flux for Starbucks. The once-elite special-

ty coffee retailer is going to have a hard

time getting back to its roots of exclusiv-

ity and its special customer experience,

and until then will have to watch its value

erode in the eyes of shareholders and

customers alike. �

Tough times are always good for re-

vealing who will rise to the occa-

sion – and in the case of today’s

recession, the squeeze on the US

economy has already begun to separate

the men from the boys. Or in this case, the

Wal-Marts from the Starbucks.

In times of consumer scepticism –

when the housing market has taken a

dive and gas prices are sky high – busi-

nesses have to prove value and gain con-

sumer trust and loyalty. Retailers, in

particular, face the brunt of a tight econ-

omy, and the natural reflex is discount-

ing. So while Wal-Mart gets to flex its

strong foundational model built on dis-

count, Starbucks sits in a fairly precari-

ous position.

In a cost-conscious consumer market,

the first thing to go are the extras, and any

budget-cutting advice columnist will tell

you at the top of every list of unnecessary

expenditures are those three-euro lattes.

When the price of a gallon of gas becomes

equivalent to a 16 oz. cup of coffee, all of a

sudden they’re not so hard to give up.

Built on the notion of ‘premium coffee at

a premium price’, the specialty coffee drinks

offered at Starbucks are meant to be consid-

ered a luxury – and a luxury drink simply

doesn’t come at a discount price. Today,

Starbucks finds itself in a state of underper-

formance with a dropping share price. And

as part of a scrambling turnaround strategy,

the company is playing with a string of pro-

motions to improve store traffic, including

free coffee and €1 discounts.

Of course, Starbucks shot itself in the

foot long before it had the economy to

blame. Exclusivity doesn’t go well with over-

availability and its out-of-control growth

across the nation outpaced its own business

model. Add to that too many product offer-

ings and a deteriorating store experience

and it’s no surprise that Starbucks recently

announced the closure of 600 stores and the

24LESLIE KNUDSONLessons from retailOr why Wal-Mart sales were up 5.8 percentat the same time that Starbucks hit a new52-week low.



The annual ‘Cheese Rolling’ tournament

at Coopers Hill in Gloucestershire, UK,

come round again in May with the win-

ner carted off on a stretcher. The unique

sporting event finds men and women pitting

themselves against a giant rolling cheese down a

hill with a gradient of 1:1. The 7.5lb Double

Gloucester cheese is released as competitors hur-

tle down the hill in an attempt to grab it before

crossing the finishing line. While organisers

claimed the wet weather had softened the ground,

30 volunteers from the St John Ambulance were

kept busy with 19 injuries. Christopher Anderson,

19, who won the first race, was carried off on a

spinal board after injuring his back.

TRADE FAIRGREAT SUCCESS

The cost of feed has increased

dramatically in recent times.

Since feed cost is the single

biggest cost for any grower, this

dramatic cost increase has a severe neg-

ative influence on the profitability of the

grower. Feed conversion ratio (FCR) is

all about growing the most kilograms of

meat for every kilogram of expensive

feed given to the animals. Numerous

studies by researchers and the experi-

ence of a multitude of growers has

proven that there is a direct relation be-

tween achieving the best feed conver-

sion ratios possible and being able to

apply effective climate control.

To gain the greatest advantage from

using climate control to improve feed con-

version ratios requires the right products

and the best application knowledge.

Munters aims to be the global leader in

providing effective and energy efficient cli-

mate control solutions to growers. As part

of this ambition, the company acquired the

well-known Danish ventilation specialists

Turbovent Agro A/S during 2007. Munters

has build up a wealth of climate control ex-

pertise and products over the years

through extensive research, which has

been further enriched with the acquisition

of well known industry leaders such as

Euroemme, Aerotech and now Turbovent.

IMPROVING FEED CONVERSION RATES

The 18th International Trade Fair Packaging

Machinery Packaging Confectionery

Machinery was held in Düsseldorf in

Germany from 24-30 April this year. Shiner

International, China’s market leader in anti-coun-

terfeit and coated plastic films and a US public

company, attended this famous exhibition in order

to enhance the international brand force of its anti-

counterfeit and coated films, colour printing ser-

vices and to further exploit international markets.

As one of the most authoritative packaging ex-

hibitions in the world, INTER PACK 2008 attracted

around 170,000 visitors from over 110 countries –

and Shiner International benefited from this fa-

mous trade fair enormously. Over the course of

seven days, wholesalers and manufacturers from

Western Europe, Eastern Europe, Africa, North

America, Middle and South America and the Middle

East came to Shiner’s booth to enquire about prod-

ucts and services, capacity of supply and other in-

formation for developing a long-term business

partnership with Shiner. In addition, many existing

customers also attended the exhibition and en-

joyed the opportunity to communicate with Shiner

face-to-face. Apart from the benefits in knowledge

gathering and trust building, some new products

were also introduced in detail.

PVOH-related coated films are the key new

products made by Shiner’s high-tech research cen-

tre. Its outstanding oxygen, flavour and aroma bar-

rier is much better than PVDC. In addition, PVOH is

non-yellowing, printable for any kind of ink and high

yield. Furthermore, PVOH’s sensibility to moisture

is reduced through Shiner’s improvement.

Shiner International’s next international show

will be PACK EXPO 2008 in Chicago in the US from

9-13 November this year. Every famous interna-

tional trade fair is a stage for Shiner to show its

high-tech new product development, capacity and

quality of manufacturing, and its increasing inter-

national map of marketing.

CHEESE CHASING1

43

65

The cheese can reach speedsof up to 70mph as it hurtlesdownhill

3000 competitors and spectators flock to the eventfrom all over the world

Since 1988, the cheese hasbeen handmade by DianaSmart of Churcham,Gloucestershire

The race winner is usually allowed to keep the cheese

Post-war food rationingforced organisers to use awooden cheese before 1954

In 1997, 33 people wereinjured, the highest toll in recent years

2


Rising health concerns in Europe have created opportunities with-

in the bottled water market, which has traditionally lagged be-

hind the soft drink sector in terms of popularity. As

consumers become increasingly health conscious, they

are switching from higher calorie carbonated soft drinks to bottled

water. In addition, the European bottled water market benefits from

the general reluctance in the population to drink tap water.

New analysis from Frost & Sullivan finds that the market

earned €24.52 billion in 2006 and is expected to grow at a com-

pound annual growth rate of 2.5 percent in Western Europe and

17.7 percent in Eastern Europe during 2007-2010.

Overall, the Eastern European market is likely to outpace the

Western market in growth due to its larger untapped potential.

While flavoured/enhanced water appears to have the brightest

prospects, still water continues to account for the biggest share of

market volume. The home and office delivery (HOD) segment also

has great potential for growth, as it is a largely unexplored market.

Bottled water companies will have to combat the campaigns

mounted by municipal utility companies, which accuse bottled

water companies of bottling the same water that is freely available

via the utilities for a price. The bottled water companies need to ini-

tiate public awareness campaigns and publish statistics to counter

this point.

There are also concerns regarding pollution created by the dis-

posal of non-biodegradable packaging material. Companies have to

demonstrate corporate social responsibility by using environmen-

tally safe materials.

Analysis from Frost &Sullivan finds that the

market earned

in 2006

It is expected to grow at a compound annual

growth rate of

in Western Europe and

in Eastern Europe during2007-2010

24.52billion

2.5%

17.7%

NEW WARNINGLABELS FOR SWEETFOOD COLOURINGS

EUROPEAN BOTTLED WATERMARKET IS SPARKLING

Back in the Q1 2007 issue of FoodSolutions, Catherine Geslaine-Laneelle, Executive Director of theEuropean Food Safety Authority,outlined how her organisationis tackling the EU-wide publichealth challenge presented by theobesity epidemic.

FROM THE VAULT

Sweets and other food

containing six E-number

colourings that increase hy-

peractivity in children will

have to carry a health warning follow-

ing a new ruling by the European

Parliament. A report by the Food

Standards Agency on the damaging

effects of six dyes – E102, E104, E110,

E122, E124 and E129 – formed the

basis of the EU’s warning. Firms now

have 18 months to put alerts on wrap-

pers. Some of the best-known

treats to be hit are Skittles, Revels,

M&Ms and Lovehearts, as well as

Lucozade Energy.

To read more, go to www.foodsolutions.eu.com and click on“Combating obesity” within issue five.


MuntersEU_AD.indd 1MuntersEU_AD.indd 1 29/7/08 09:52:2829/7/08 09:52:28


CHINA READY FOR SAFETY CHALLENGEHealth inspectors are maintaining round-the-clock in-spection at up to 148 food plants providing meals for theBeijing Olympic Games, according to local media. Theinspectors are monitoring production processes andsanitation, while also carefully checking product quali-ty. Chinese-made products were at the centre of a se-ries of global safety scandals last year.

FS IMPACT RATING: �� WORLD TRADE TALKS HIT IMPASSEAnalysts have said that the collapse of the Doha talkscould symbolise an end to multilateral trade agreements.Instead, nations may pursue dual agreements with part-ner nations, preferring to focus on their own require-ments rather than a more common negotiating goal. Thetalks in Geneva were complicated by recent increases inthe price of food and fuel.

FS IMPACT RATING: ��

US FARM BILL IGNORES GLOBAL ISSUESThe US Congress has passed a $290 billion farm bill,which will increase subsidies to US farmers and cut inter-national aid programmes. With global food prices sky-rocketing and global fears of a potential food shortagegrowing, the bill sends a disappointing message from theUS to the rest of the world and has been widely con-demned by the international community.

FS IMPACT RATING: ��

COMPANY INDEX Q3 2008

28

AROUND THE WORLD IN

Our guide to the most exciting developments infood and agriculture over the last quarter.

80DAYS

Companies in this issue are indexed to the first page of thearticle in which each is mentioned.

3S Packaging Agriflex Agri-Food and Biosciences Institute Anitox Barry Callebaut Bayer Animal Health Büchi Labortechnik AGBuhler AG CDC Cool Chain Association Datamonitor DeLaval Denner Discount DSM DuPont Qualicom European Anti-Fraud Office European Commission European Food Safety Agency European Union Evonik Industries Fancom FDA

23208692519274

11882

112309066766972

52, 88, 1081088692

11760

Federation of Migros Co-operatives (FMC) FLAVEX Naturextrakte GmbHFood and Agriculture Organisation (FAO) Food Fraud Database Food Fraud Task Force Fort Dodge General Electric General Mills Germanischer Lloyds Habasit Halnan Shiner Industiral Co IARC Illegal Meat Task Force International Feed Industry Federation International Food Safety Authorities Network JECFA JohnsonDiversy Jungbunzlauer Kraft Foods Lipid Nutrition Maxim Integrated Products Inc. Migros

6654

60, 82, 1447272923056

112121256072

10282

60, 829252

114488066

Munters Munters Europe AB Nestlé Niro A/S Novozymes PRISYMIDPromens Raycome International Corp Royal Philips Electronics Royal Wessanen Saint-Gobain Performance PlasticsSandvik Shell Lubricants Slow Food Subway The Coca-Cola Company UK Food Standards Agency UTO Wal-Mart Waters CorporationWorld Health Organisation (WHO)

11425306460

1321301063838

12412429

134136, 138

4472

10424

78, 8660, 82, 102, 112

ZIMBABWE FACES FOOD SUPPLY CRISISZimbabwe’s official inflation rate has escalated to 2.2 mil-lion percent, driving the cost of a loaf of bread to aboutone-third of a teacher’s monthly salary. Zimbabwe’s eco-nomic collapse, combined with drought and crop failures,has left two million people short of food, with aid agencieswarning that the figure could rise to five million byJanuary next year.

FS IMPACT RATING: �



what the changes mean in terms of overall

health, but we have established that introduc-

ing friendly bacteria can chance the dynamics

of the whole population of microbes in the gut.”

Earlier research has suggested that pro-

biotics help prevent bowel conditions such

as ulcerative colitis, protect children against

allergies and may even reduce the risk of

colon cancer. They may be particularly bene-

ficial for older people, bolstering levels of

friendly bacteria that dwindle with age. The

foods may also be useful for those on antibi-

otics, replacing good bacteria that are killed

off by the drugs.

Probiotic drinks and yoghurts are good

for the health, according to a new

study. Scientists have claimed buying

the drinks is a waste of time because

the products contain too few bacteria to make

a difference. But the latest research suggests

that they have a clear effect on the body.

Jeremy Nicholson, who studied the products at

Imperial College London, said: “Some argue

that probiotics can’t change your gut microflo-

ra – whilst there are at least a billion bacteria in

a pot of yoghurt, there are a hundred trillion in

the gut. Our study shows that probiotics can

have an effect. We’re still trying to understand

PROBIOTIC YOGURT DRINKS DO WORK

TOP 10 FOODS FORBETTER HEALTH

FIRST ISO 21469ACCREDITATION AWARDED

Shell Lubricants have become the very first re-

cipients of the ISO 21469 international stan-

dard for food sector lubricants. Shell food

grade lubricant products are currently the

only ISO 21469 certified products available globally.

ISO 21469 is a hygiene standard designed to im-

prove the safety of machinery used in food production

and packaging when using food grade lubricants.

Attainment of this ISO standard is certification of the

end-to-end quality process of Shell’s food grade prod-

uct formulations and manufacturing.

To achieve this standard, Shell Lubricants under-

went a four-stage accreditation process, submitting

comprehensive product formula and labelling infor-

mation to the NSF for review. The NSF conducted a

thorough physical audit of Shell’s plant in Bern, in-

cluding checks on hygiene conditions and verification

that ingredients used on-site match those recorded in

the product formulas already submitted. Samples

were also collected for independent chemical testing

of food grade lubricants at the NSF laboratory. Finally,

Shell Lubricants submitted a risk assessment, demon-

strating that every possible measure is taken to ensure

that the customer’s food grade lubricants will be man-

ufactured to the correct standard.

“Food safety is an important issue and ISO 21469

will help to ensure better standards of lubricant hy-

giene, offering peace of mind to manufacturers and

consumers alike,” commented Shell Lubricants Food

Sector Product Application Specialist, Eduard

Stempfel. “We believe that the work involved in quali-

fying for ISO 21469 is very important if it helps to main-

tain food grade product assurance and high levels of

food safety for all. We’re delighted to be the first sup-

plier to achieve official certification.”

This accreditation proves that ISO 21469 is achiev-

able and it now sets a benchmark for other food sec-

tor lubricant suppliers to follow.

Ahectic lifestyle makes it easy to skip

a meal or just grab less-than-

nutritious food on the run. But a

busy day doesn’t have to stand in

the way of great health. A multivitamin is

great insurance for days when you do miss

a meal or two, but real food should always

be your primary source of nutrients. Keep

these 10 foods on hand at all times, and

you’ll be able to whip up a delicious meal or

snack that will keep your energy up and your

immune system strong.

1

43

65

87

109

BERRIES

CITRUS

VEGETABLES

WHOLE GRAINS

SALMON

LEGUMES

NUTS AND SEEDS

LEAN PROTEINS

TEA

OLIVE OIL

2



THE BIG INTERVIEW

Werner Bauer is a happy man. The night be-

fore our interview, his beloved Germany

beat Turkey in an epic semi-final at

Basel’s St Jakob Park stadium, a game he

attended, to reach the final of the Euro 2008 Football

Championships in Vienna and

send Germans everywhere

into a state of rapture. When

we meet the next morning, he

is still very much high on that

winning feeling. “It was a great

game, a really fun game to

watch,” he says, beaming.

“Turkey played really well, but

we scored some terrific goals

and in the end were probably

a bit more clinical. We just

know how to win.”

He could just as easily be

talking about Nestlé itself. The company has a well-de-

served reputation for operational excellence, and ever

since Henri Nestlé developed the first milk food for in-

fants in 1867 – saving the life of a neighbour’s child in

the process – the company has steadily grown to be-

come the world’s largest food firm, employing a busi-

Can science help solve the world’s food crisis? Nestlé certainlythinks so. In an exclusive interview with Food Solutions’ SeniorEditor Ben Thompson, the firm’s Chief Technology Officer WernerBauer discusses why R&D is changing the face of food research,and how Nestlé is leading the way.

The applianceof science

ness model based around delivering innovative solu-

tions for human health and nutrition. With 2007 rev-

enues of €65.9 billion, it is clear that Nestlé, too, knows

how to get results.

Much of this success can be put down to the com-

pany’s decision a few years ago

to refocus its activities on

health and concentrate on the

nutrition and wellness sector.

It’s a transformation that has

been heavily reliant on R&D,

and as such Bauer has been a

key figure in integrating a cul-

ture of innovation into the very

fabric of Nestlé’s operations – a

task made easier by the high-

regard in which R&D has always

been held at the food giant.

“This company has always had

a very good attitude towards R&D,” he explains. “I re-

member when I first joined the company 20 years ago,

there was a tremendous sense of goodwill towards re-

search and development, a belief that whatever the

problem, R&D has the potential to fix it. That attitude

has not changed.”

WernerBauer NESTLE ED:aug08 15/8/08 09:23 Page 30

“When I first joined the company 20 years ago,there was a tremendous sense of goodwill towards

R&D, a belief that whatever the problem, R&Dcould fix it. That attitude has not changed”


Nonetheless, there were still significant hurdles to be overcome for the

company to realise its vision. “For me, the greatest challenge in moving

from a classical agroconverter company into a nutrition and wellness com-

pany was realigning our competency areas,” continues Bauer. “We had to

transform our organisation into one where we developed high added value

products, which meant we had to build up our R&D capabilities, trans-

forming even our most basic research facilities into nutrition and health re-

search institutions.” Many of the areas in which the company had

previously been strong – such as the processing of agricultural bulk work

for the development of foodstuffs such as French fries and tomato sauces

– were sold off, and investment switched to building out more added-value

environments.

It was a major shift, involving knowledge acquisition around a whole

host of cutting-edge areas, including new technology platforms and evolv-

ing research into areas such as enzymatic processes, metabolism and

bioavailability. “We needed to find out all about how the body

metabolises, and find out how those processes influence your health

status,” says Bauer. “This was a new category for us, and it put quite a

stress on the R&D organisation. Expertise in all these new areas had to

be established before we could drive forwards, so it was quite a heavy

change over time.”

Better understandingHe is in no doubt, however, that the

effort has been worth it, with an in-

creased understanding of how nutrition

and lifestyle choices impact upon body

composition and metabolic health proving

to be a valuable tool in new product de-

velopment. “We have thousands of prod-

ucts, and this new focus has really

enabled us to look at the nutritional value

of each of those products, based on the

latest scientific research,” he says.

It’s a key area for Nestlé, informing

all of the company’s decisions around

the launch of new products. Internally,

the firm is guided by what Bauer refers

to as “the 60/40 plus” formula, an inter-

nal process that requires all R&D, mar-

keting and product development staff worldwide to judge products based

on two criteria. “First, in a blind taste test between our product and the

competition, our product has to have 60 percent superiority,” he explains.

“Ideally, we want to be higher than that, but with a minimum 60 percent su-

periority we can launch that product. Secondly, we aim to achieve nutri-

tional superiority.” This means that once all the basic criteria have been met

(low salt content, sugar adequacy, low-to-nonexistent trans-fatty acids)

then the product must be nutritionally superior to competing brands – the

‘plus’ element. “We have over 360 nutritionists in our various R&D centres

looking at the continuous nutritional improvement of our products, and the

60/40 plus process provides an internal quality management tool for this.”

For Bauer, the key challenge is in translating scientific advances into

defined consumer benefits. Take weight management, for instance.

“When you understand the mechanisms around satiety, you can build it

in to your products and deliver higher satiety with lower calorie intake,”

he suggests. “Another area of research is based around the impact of

calorie-burning foods. For example, capsicum (found in chilli peppers)

has been shown to stimulate the body’s metabolic rate – helping to burn

more calories – as well as having antioxident effects. These are both ad-

vances that have a clear, defined consumer benefit – that of helping cus-

tomers to better manage their weight.”


Global headquarters of Nestlé, Vevey, Switzerland


Buchi_AD.indd 1Buchi_AD.indd 1 29/7/08 09:42:3729/7/08 09:42:37

so far that the benefits are generally accepted because the scientific liter-

ature behind it has come such a long way.”

And although it took more than 10 years to move from basic science to

consumer acceptance, Bauer sees this as a positive step. “I think it’s good

that there is a reluctance just to jump on the next bandwagon, and instead

a desire to understand what happens and why,”

he says. “Today we understand the mechanisms

behind probiotics, and that allows us to extend

the concepts further. For example, once you un-

derstand the link between your intestinal consti-

tution and how your skin reacts, then you can

influence the status and health of your skin

through the use of probiotics, which is something

we never could have predicted 10 years ago.

Today, we have products on the market that help

against sunburn that stem from a probiotic con-

cept. So science has progressed dramatically.”

Indeed, Bauer believes the way that food has

become an integral part of disease prevention – as

opposed to just being thought of as sustenance –

provides a huge area of opportunity for Nestlé.

“The longer we live, the more influence food has on

our future health,” he explains. “We now need to

take a much more holistic approach to how food

and science interrelate. I remember 20 years ago

when we were first starting to talk about function-

al food, and people thought it sounded like moon-food, real sci-fi stuff. But

now people are coming round to the idea that there are certain things that are

really good for your long-term health. Actually, we are reverting back to some

of the old beliefs our grandparents had about the effects of certain foodstuffs.”

Research in the pipelineIt’s yet another example of the way food industry R&D is moving down

a similar path to that of the pharmaceuticals sector. Today, scientists un-

A further area of interest is the company’s Healthy Recovery pro-

gramme, which helps patients undergoing treatment for various condi-

tions to improve their diet as a means to combat the negative health

effects of therapy. “Cancer treatment, for instance, has a huge impact on

both your metabolic and physical status,” explains Bauer. “Part of our

work is developing specific nutrition for people

undergoing heavy treatment, because we’re

seeing that nutrition can be a key factor in

preparing the body for the successful applica-

tion of these therapies. It’s a fascinating area,

very much linked to understanding the body’s

needs under specific conditions.”

A more scientific approachIn this respect, he sees the industry moving

closer to the model used by the big pharmaceu-

ticals companies in terms of the way it uses sci-

entific research for product improvement. “We

have certain responsibilities, and need to main-

tain strong principles around how we use sci-

ence,” he says. “Clinical research has to have

significant control mechanisms. For example,

everything we do worldwide in clinical research

goes through a committee that decides on the

setup of the study, the outcome of the study, the

statistical significance of the study, and so on. A

company of our size and reputation could never afford to have a gimmick

result used for a legitimate claim.”

But with a growing body of scientific research behind it that attests to

the health benefits of nutritionally improved food products, Nestlé has no

need for such gimmicks. Bauer cites probiotics as a development where the

advantages of the product speak for themselves. “Ten years ago when we

launched the first probiotic products, it was unbelievably difficult to com-

municate the benefits,” he says. “Today, the understanding has progressed

1866-1905In 1867, Henri Nestlé developed a food for babies whowere unable to breastfeed. His first success was an infantwho could not tolerate his mother’s milk or any of theusual substitutes. Soon, Farine Lactée Henri Nestlé wasbeing sold across Europe.

1905-1918 In 1905, Nestlé merged with the Anglo-Swiss CondensedMilk Company. By the early 1900s, the company wasoperating factories in the US, Britain, Germany and Spain.By the end of World War I, Nestlé’s production had morethan doubled.

TIMELINE: KEY DATES1918-1938After the war, government contracts dried upand consumers switched back to fresh milk.However, Nestlé’s management respondedquickly: the 1920s saw Nestlé’s firstexpansion into new products, with chocolateNestlé’s second most important activity.

1938-1944Profits dropped from US$20 million in 1938 to US$6million in 1939. Ironically, the war helped with theintroduction of the company’s newest product,Nescafé, a staple drink of the US military. Nestlé’sproduction and sales rose in the wartime economy.

FAST FACTS: NESTLÉ

Global headquarters:Vevey, Switzerland

2007 revenues: €65.9 billion

Worldwide employees:276,000

No. of factories: 480


derstand much more about genomics and the reasons why some people are

more predisposed to certain illnesses than others, and much of this research

is being transposed across to the food industry. For Bauer, this means the

dawning of a new age of personalised nutrition. “The more we know about

human genetics and nutrition, and how they interact, the more we are able

to help people make decisions about what they should eat, how much they

should eat, when they should eat, and so on. We are increasingly seeing that

what works for one person will be different for another.”

And with the idea of personalised nutrition mirroring – conceptually, at

least – pharma’s advances in personalised medicine and targeted treat-

ments, Bauer is excited by the possibilities it offers. “This more customised

approach to nutrition will be beneficial for future generations, for sure,” he

enthuses, “and it’s something we’re really focusing on. We’ve actually been

able to take a number of best practices from the pharma industry to help

drive this. For instance, for many years now we have employed the pipeline

approach to our R&D, which means we have a constant flow of innovation

in specific categories – such as infant formula and clinical nutrition, for in-

stance – and are able to look at that research in terms of what the project

will be worth in future values.”

The other key area is diagnostics. “If you could measure whether you

were salt-sensitive or not in a simple way, you could immediately adapt

your nutritional intake to reflect this,” Bauer says. “In this regard, diag-

nostics will play a clear role in the future, especially non-invasive diagnos-

tics – people who want to change their lifestyle and nutritional behaviour

don’t necessarily want to undergo heavy invasive diagnostics. In fact, we

are currently working on a partnership with General Electric to develop non-

invasive diagnostic tools to help meet this demand.”

The value of partnershipsFurther partnerships will certainly be key for the company going for-

ward. And while the rapid developments in the application of science and

“The more we know about human genetics andnutrition, and how they interact, the more we areable to help people make decisions about whatthey should eat, how much they should eat,when they should eat”

2003+ 2003 started with theacquisition of MövenpickIce Cream. In 2006, JennyCraig and Uncle Toby’swere added to theportfolio and 2007 sawNovartis Medical Nutrition,Gerber and Henniez jointhe company.

1981-1995Nestlé divested a number ofbusinesses1980/1984. In 1984,Nestlé’s improved bottom lineallowed the company to launch anew round of acquisitions, the mostimportant being American food giantCarnation in 1985.

1996-2002 Since 1996 acquisitions have includedSan Pellegrino (1997), SpillersPetfoods (1998) and Ralston Purina(2002). In 2002, Nestlé merged its USice cream business into Dreyer’s,followed by a US$2.6 billionacquisition of Chef America, Inc

1944-1975Growth accelerated. In 1947 came themerger with Maggi seasonings and soups.Crosse & Blackwell followed in 1960, asdid Findus (1963), Libby’s (1971) andStouffer’s (1973). Diversification camewith a shareholding in L’Oréal in 1974.

1975-1981Nestlé’s growth in the developing worldpartially offset a slowdown in the company’straditional markets. Nestlé made its secondventure outside the food industry by acquiringAlcon Laboratories Inc.



technology are undoubtedly having a positive impact

on the food industry, Bauer concedes that they do pose

some organisational challenges. “You cannot have all

competencies and capabilities available, all the time,

within the four walls of your organisation,” he says.

“The speed of change is far higher than the speed at

which you could adapt all your resources to keep up.”

As a result, Nestlé has developed a number of

partnerships with universities in order to help get

ahead of the game, with around 200 major contracts

in place – for example, to help with basic research

work into proteins and their value to the healthcare

side of the business. The company has also created

a venture capital fund to benefit from the brilliant

ideas being formulated at the many start-up com-

panies within the sector; since 2002, Nestlé has in-

vested in 80 start-up companies investigating new

ideas in areas such as immunity, triggering and al-

lergy prevention.

The final element of the strategy involves im-

proving collaboration with the company’s various supply partners in order to

take advantage of those firms’ own substantial R&D capabilities. “We decid-

ed to create an innovation partnership model with those companies, and it is

one of the most efficient tools we have put in place over the past few years –

highly efficient, highly focused and with a high level of trust established,” ex-

plains Bauer. “We now have 15 such R&D partnerships in place.”

It’s clearly an approach that works well, and Nestlé was recently cited

in a Datamonitor study as having one of the most holistic approaches to

open innovation systems in the industry. For Bauer, this success is all about

setting the rules of engagement at an early stage of the game. “To build the

right level of trust, you need to have clear contracts. For each of these part-

nerships, we have the same frame contract, which makes clear who owns

which patents and the IP behind them. We set these guidelines before we

even start working together, which is a very efficient way of working.”

Challenging timesAnd it needs to be. The food industry is entering a period of sustained

pressure, with more demand, less supply, ill-judged agricultural policies

and the rise of biofuels all contributing to rising prices in what Nestlé CEO

Paul Bulcke has referred to as “a perfect storm”. Add to this the fact that

much of the developing world is still suffering from food shortages and mal-

nutrition and it is clear that these are challenging times for food industry

executives. So what does Bauer see as the key trends over the coming

years? “For me, the biggest driver of change is the demographic changes

currently taking place,” he says. “What are the specific nutritional needs of

a population in which a major proportion is aged 65 or over? That’s a much

bigger focus for us now than it was 20 years ago. We also clearly need to

invest in more R&D behind obesity issues.”

Lifestyle change is the next big driver of change in the food industry, some-

thing Bauer believes is very much triggered by urbanisation. “Around 80 per-

cent of the population today already live in urban environments, so this has

led to totally different feeding behaviours,” he explains. “For instance, fewer

people take their breakfast at home anymore, but rather in the office environ-

ment or on their way to the office. These kinds of things clearly have an impact

on what you deliver to the consumer in terms of products.” Management of

key resources will also be critical. “Scarcity of good water. Scarcity of good agri-

cultural land. Scarcity of certain raw materials. Scarcity of oil. All these factors

will lead to the necessity to rethink food production and distribution, how it’s

transported and over what distances. We could see a return to the values of

local production and consumption.”

The good news is that the final driver for change cited by Bauer is the

pace of technological development. “Science and technology is progress-

ing ever faster, so hopefully we will have even better solutions to some of

the three first challenges,” he says. “As a company very heavily involved in

R&D, Nestlé will be at the forefront of these rethinks in terms of how we cur-

rently do things. It’s an exciting time.” �

NEW NUTRITION FACILITY

In April this year, Werner Bauer inaugurated a Nestlé

Nutrition facility in Konolfingen, Switzerland, to produce

new-generation probiotic infant formula under the NAN

brand and enable Nestlé Nutrition to meet the growing

needs of consumers in over 90 countries.

The inauguration marks the first stage in a series of

investments totalling around €109 million over the next

three years, strengthening Konolfingen’s position as a

global manufacturing site for highly-specialised infant

formula and healthcare nutrition. The new Nestlé

Nutrition industrial site will benefit from synergies with

Nestlé’s Product Technology Centre, also based in

Konolfingen.

The establishment of the new Nestlé Nutrition plant is

a further sign that Nestlé sees the nutrition business as

one of its key strategic areas with above-average growth

and profit potential over the coming years. Nestlé

Nutrition is today the world leader in specialised nutrition

with annualised sales of about €6.7 billion in 2007.


ShellLubricants_AD.indd 1ShellLubricants_AD.indd 1 29/7/08 09:54:5629/7/08 09:54:56


CEO PERSPECTIVE

Ad Veenhof ED:aug08 14/8/08 13:36 Page 38

Health food has traditionally suffered from some-

thing of an image problem. Think of healthy eat-

ing, and images of brown rice, lentils and pulses

most likely spring to mind: undoubtedly good for

you, but tasty? Forget about it. Most of us would

rather have our teeth pulled than sit down to a

dinner of alfalfa sprouts and wholewheat pasta. But is this an out-

dated stereotype? Ad Veenhof’s Royal Wessanen certainly thinks

so, and aims to change that perception by providing healthy al-

ternatives that are both nutritious and tasty.

“The common factor that characterises all of our products is

authenticity,” explains Veenhof. “This is driven by a firm belief that

our customers want, above all, food that is true to its origins, ei-

ther in terms of its ethnicity or the purity of its ingredients. We be-

lieve that Wessanen brands can differentiate themselves in the

marketplace by adhering to true authenticity – not just in terms of

the product itself, but also in the way each product is marketed

and through packaging and promotion.”

Wessanen has a long heritage in the food business, reaching

back to 1765 when it first began trading in mustard, canary and

other seeds. Today, the company has a fully diversified global sales

market, producing and distributing natural and organic products as


In just five years, Ad Veenhof has turned Dutch producer and distributorRoyal Wessanen into one of the continent’s business success stories –and he doesn’t plan to stop there. Veenhof is on a mission to becomethe market leader in quality health food products – and most importantly,to prove to a sceptical public that such foods can be delicious.

By Rebecca Goozee

well as quality food products. In recent years, under the guidance of

Veenhof, the company has experienced redesign, restructure and

rebuilding to create a highly efficient and cost-effective method of

getting products to the marketplace, using state-of-the-art logistics

and marketing techniques. Distribution operations have been ben-

efiting from Wessanen’s Smart Assortment service, for example, as

well as several other value-added services.

In 2004, after detailed consumer and market research,

Veenhof’s team identified two groups of food products that they felt

offered the best opportunities for growth: pure, natural and or-

ganic foods, and ethnic specialties from around the world.

“We called them Health and Premium Taste,” he says. Now,

with a focus on these products, Wessanen is ready to launch

its Health and Premium Taste brands in both the European and

North American markets. Due to the significant potential of

the health and gourmet market – particularly with increasing

numbers of consumers becoming more aware of what they eat

– Wessanen, with Veenhof at the helm, is preparing to become

the market leader in this area. “We aim to differentiate from

mainstream health categories by offering an attractive port-

folio of great-tasting natural and organic products for the so-

called conscious consumers,” he says.

GROWTH

PLANNINGFOR HEALTHY


“Our health food range comprises of a rather broad portfolio of products and

brands, varying from organic breakfast cereals to multigrain chips, herbal teas

and vegetarian spreads.” Target consumers are principle-conscious, who are

critical about their social and natural environment. “These consumers shop at

neighbourhood natural food stores and general grocery stores, where our

brands command trust and respect thanks to our reputation for purity and au-

thenticity,” says Veenhof.

Wessanen also have a Premium Taste portfo-

lio, aimed at specific segments and categories,

such as authentic Asian foods, Mediterranean spe-

cialties and French gourmet products. “Target con-

sumers are adventure-conscious, and have an

international orientation, taking pleasure in ex-

ploring new flavours. These consumers shop for

our authentic premium-quality products in special-

ist ethnic stores or in the international aisle of the

general grocery store.”

Food safetyAs customers become better informed they

will increasingly insist on quality and safety in the

food chain, and companies will have to be more

creative in how they source products to meet the

growing needs of an expanding and diversifying

population base. Food safety is a top priority,

says Veenhof. “For one, all our production facilities comply with BSC, IFS

and in the near future the new ISO 22000. And in addition to this, the

Wessanen Food Safety Plus (WSF+) standard goes beyond the legal re-

quirements and builds on HACCP and the new ISO 22000 standard re-

garding food safety.” Reaching beyond ISO 22000, the WSF+ includes

additional requirements in the field of contamination risks, transport,

training, purchasing, traceability and new product development. In the

future, Veenhof aims to incorporate external audits on issues such as

food safety, product responsibility, social and ethical indicators.

Along with food safety, transparency and traceability are two key is-

sues in the food industry that are essential for operations to run smooth-

ly. In 2007, Wessanen made a general analysis of all possible

sustainability issues in the food supply chain. This analysis resulted in

the Wessanen Identified Social and Ecological issues (WISE) list. Next,

a Wessanen team identified the 10 most used ingredients in their brand-

ed products portfolio and established a sustainability risk profile for

each of them. “In order to make a direct link between our products and

supply chain responsibility, we will integrate criteria for sustainability

into the lead buyers and new product development processes by the

Health foodThere has undoubtedly been growth across the spectrum of the health

food market in the last decade, and despite rising food prices, this trend

looks set to continue. Veenhof believes

that today’s consumers are increasingly

better informed through a mixture of

media, marketing and globalisation, re-

sulting in an increased awareness of envi-

ronmental and health issues. This

awareness triggers a desire to eat more

healthily and pay attention to their food

with regard to food safety and production

methods, says Veenhof. On the whole,

more and more consumers study product labels for information about the

origin of the food they purchase, as origin reflects quality and authenticity.

“Supportive trends in the past couple of years have been healthy

eating on-the-go, such as fruit drinks, smoothies and breakfast bever-

ages,” he suggests. “There has also been a growing popularity in nat-

ural and healthy herbals and botanicals, such as herbal energy drinks

and energy bars.”

Wessanen’s focus on health foods concerns healthy and authentic food

products that are cultivated in an organic manner, containing no artificial ad-

ditives or that have undergone no processing, or are exclusively vegetarian.


SUSTAINABILITY STRATEGY

Over the next five years Wessanen isembedding a culture of sustainability intothe company through:

• The involvement of top management on the

Sustainability Board

• Continuous improvement of

sustainability performances

by setting SMART targets,

using the Plan-Do-Check-Act

cycle and promoting a fact-

based approach

• Maintaining transparency by

providing internal and

external stakeholders with a

fair representation of activities

and goals

• Taking an integral approach

towards sustainability –

products, planet, people and

profits – and integrating these

in existing management

systems and processes

• Focusing on its direct sphere of influence and thus

creating the foundation to widen the scope of the

sustainability strategy in the future to include indirect

impacts up and down the supply chain

“The common factor that characterises all of our products isauthenticity. This is driven by a firm belief that our customerswant, above all, food that is true to its origins, either in termsof its ethnicity or the purity of its ingredients.


JohnsonDiversey_AD.indd 1JohnsonDiversey_AD.indd 1 29/7/08 09:50:3629/7/08 09:50:36

passionate about maintaining a business approach that is built on purity,

fairness, safety and environmental responsibility.”

Veenhof has been systematic in his approach to sustainability, creat-

ing a framework that enables the company to monitor social, environ-

mental and financial performance across the organisation as a whole.

Waste volumes, carbon footprint and cooling agent consumption have

all been monitored, as well as the number of employee training hours,

injury frequency and severity. Data is gathered annually and published

in the company’s Sustainability Report, which measures and monitors the

impacts and responsibilities of the supply chain, giving insight into re-

sponsibilities with regard to products, people, planet and profits. Along

with Wessanen’s Sustainability Report, the company’s sustainability poli-

cy also includes several themes. “Since we want to think of sustainability

as a core element of our organisation, we inte-

grated this concept in our business principles,

which describe our responsibilities and com-

mitments towards our stakeholders.” Based

on these business principles, seven themes

have emerged, namely: transparency and ac-

countability, supply chain responsibility, gov-

ernance, environment, employees, human

rights and product responsibility.

Product responsibilityOne element of this themed policy means

that Wessanen maintains product responsibil-

ity, which for Veenhof means that besides

being safe and bona fide, products have a

pureness of taste, contribute to balanced nu-

trition or are based on recipe heritage. “We

carry a large assortment of health products, in-

cluding organic, natural, vegetarian and di-

etetic,” explains Veenhof. “The key to our success in this area is marketing,

and in particular consumer information. A number of our brands have

helpdesks in place, offering personal advice with regard to the use of our

products. Furthermore, we make sure the health claims on our products are

valid and assessed on a regular basis.” Veenhof is keen to point out that

product packaging plays a key role in the development of new products in

terms of marketing, as aside from its protective function it is also a chance

to convey the correct message in terms of marketing (being attractive and

authentic), and consumer information (containing the correct labelling and

health claims).

As well as this responsibility, Veenhof is also keen to look at improving

other areas in the coming months – for example, a number of frozen snacks

will be awarded the ‘Il kies bewust’ or ‘conscious choice’ logo, informing con-

sumers that these particular products conform to a number of health criteria

in that particular product segment and, as such, are a healthier option.

ProfitsTotal revenue for Wessanen’s first quarter of 2008 was an impres-

sive €384.6 million. Veenhof believes this can be attributed to good per-

formances in all four businesses, across both Europe and North

America. “Growth in our branded operations was mainly the result of

increased brand quality, strong innovation and intensified marketing ef-


■ TRANSPARENCY AND ACCOUNTABILITY: Being

honest, clear, open and timely about performance,

business activities and products.

■ SUPPLY CHAIN RESPONSIBILITY: Striving to

optimise the supply chain by co-operating with supply

chain partners. Important elements of this are the

pursuit of transparency, a controlled supply chain and

a constantly improving supply chain.

■ GOVERNANCE: Honest stewardship and good

management is vital for a

company to be successful.

■ ENVIRONMENT: Minimising the

negative impact of products and

processes on the environment,

from both the perspective of

internal environmental care and

supply chain orientated

environmental care.

■ EMPLOYEES: Wessanen

guarantees the conditions for its

employees to make sure they are

engaged, motivated and involved

in business processes.

■ HUMAN RIGHTS: Wessanen

respects and supports the human

rights of its employees and all other parties affected

by its business.

■ PRODUCT RESPONSIBILITY: We have a

responsibility in guarding and contributing to the

health of people. Honest, explanatory information

about food is part of this responsibility.

SEVEN STRATEGIC THEMES

end of 2008,” says Veenhof. “By disclosing the origins of our products

we are able to fulfil our promise of authenticity. In this process, we

achieve transparency and create internal and external pressure to become

more sustainable.”

SustainabilityIndeed, Wessanen is committed to making a contribution to sustain-

able development in all of it’s businesses. Veenhof claims that Wessanen

products are bought by discerning consumers for whom social, environ-

mental and ethical issues are important. “These consumers want to be sure

that the ingredients are pure and natural, and that the supply chain carry-

ing the product from field to table is environmentally, ethically and social-

ly responsible,” says Veenhof. “It is therefore essential to show that we are


forts,” says Veenhof. He goes on to explain that European business con-

tributed to approximately 50 percent of the growth.

Organic sales growth was 5.1 percent in the first quarter, excluding cur-

rency variation, and Veenhof is committed to growing European revenue by

a further five to seven percent and American revenue by six to eight per-

cent, with both branded divisions predicted to reach higher margins of 10

to 12 percent.

But how does Veenhof plan to reach these tar-

gets and overcome today’s tight budgets? Product

innovation and cross-border expansion have been,

and continue to be, key strands in Wessanen’s

growth strategy, explains Veenhof. Specialist

European Category Innovation Managers are em-

ployed to generate ideas for new products in key

categories, and once an idea has been accepted by

the board, a project team is assembled to ensure

all-inclusive and speedy product development.

“This innovation process has been very successful

for us,” says Veenhof, “leading to the creation of

products such as SOjuicY, the soy-based beverage

range that has recently been rolled across the

Netherlands, Belgium, France and the UK.”

Future focus“Our strategic focus for the future is on gener-

ating more organic growth by fulfilling the increas-

ing demand for food that is natural, wholesome and

authentic. We will continue to develop our key

brands, refine our innovation pipeline and create

opportunities for multi-country product launches,”

says Veenhof. On the distribution side, Veenhof is striving to enrich the quali-

ty of retail relationships by achieving an exceptional level of product, market

and consumer expertise. “We will also look for further opportunities to exploit

buying synergies in Europe, and to build partnerships with our suppliers.

Within this process we will remain mindful of financial implications and the

constant need to measure activity by its cost-effectiveness.” �


€1.5 BILLIONROYAL WESSANEN’S

2007 REVENUES

After 32 years at Royal Philips Electronics, working his

way through the ranks, from Management Development

Officer to CEO of Domestic Appliances and Personal

Care, Ad Veenhof joined Royal Wessanen in 2003 as

President and CEO. Since then he has successfully

turned the company around, substantially strengthened

the overall financial position and is now in the process of

embarking on growth in all four division: Europe Branded,

Europe Distribution, North America Branded and North

America Distribution.



Danny Strickland, Chief Innovation and Technology Officer at The Coca-Cola Company, discusses the strides the world’s largest beverage companyis making in the health and wellness arena, as it expands its geographicreach and global portfolio with a newfound health consciousness.

Coca-Cola’s

health kick

INNOVATION FOCUS

Coca-Cola ed:aug08 14/8/08 13:43 Page 44

Coca-Cola is still all about refreshment – but these days it’s

just as much about health and wellness. The company, once

primarily known for its classic, syrupy-sweet carbonated

beverages, is now talking about brain food and cholesterol-

lowering agents as it aims to make further inroads into

health conscious consumer-driven markets. The renewed

focus on wellbeing has resulted in a healthy share price for the €18.5 bil-

lion company. New ventures into the lucrative enhanced and functional bev-

erage markets thanks to the recent acquisitions of glaceau, Fuze and Jugos

del Valle, along with strong geographic growth in key markets is piquing in-

vestor interest.

Since Chairman and CEO Neville Isdell took the reins nearly four years

ago, the company has been on a fast track for growth with bigger, riskier

projects, heavy marketing efforts and an eye on acquisitions. Worldwide

sparkling beverage volumes increased four percent and still beverages in-

creased 12 percent. The impressive growth and earnings speak to the level

of continued innovation that has carried the company above and beyond

their standard platforms through new product offerings across a range of

beverage categories – energy drinks, juices/juice drinks, soft drinks, sports

drinks, tea and coffee and water – while injecting an array of health bene-

fits into the portfolio.

Decisions around such innovation largely fall on the shoulders of

Danny Strickland, who wears the innovation hat at Coca-Cola and is re-

sponsible for orchestrating innovation initiatives across R&D, technical

stewardship (including items such as regulatory, water, environment, etc.)

and flavour manufacturing. “Great innovation is the convergence of three

things,” Strickland says. “It’s understanding the fundamental consumer

need that you’re trying to satisfy, having the capability to satisfy that need

through a robust and sustainable solution, and making sure it fits from a

business standpoint in terms of the right strategy and economics. So, it’s

consumer, technology and business fit.”

While many different streams of innovation come across Strickland’s

radar, he narrows his innovation focus down to three main components. At

the top are the most significant projects that are carried out on a larger

scale across many diverse markets. “The big bets are the convergence be-

tween consumer needs, technology and business fit, but on a much larger

scale,” he elaborates. “We call them big bets because they have a poten-

tially significant impact, they take more resources and they’re more chal-

lenging, but the payoff is bigger when you succeed.”


Danny L. Strickland is Senior Vice

President and Chief Innovation and

Technology Officer for The Coca-Cola

Company. Strickland leads the

company’s worldwide innovation and

research and development efforts and

helps develop new products, packages

and technologies to meet the

demanding needs of consumers.


Typically the big bets lead to a platform – the perfect example being

Diet Coke, which has branched off into Diet Coke Cherry, Diet Coke with

Lemon, Diet Coke Caffeine-Free, etc. In addition to big bets, another

focus of the innovation process entails locally driven initiatives that

possess more of a degree of granularity related to a particular customer

or market, and are driven by a local understanding of needs based on

a certain demographic.

The third stream of innovation Strickland cites as critical for success

is reapplication – identifying what works well and then applying

those successes elsewhere, whether in another product or a differ-

ent market, such as with Coca-Cola’s On-the-Go bottle. “The On-the-

Go bottle was a package that started in China and is significant

because it was a great example of us managing innovation differ-

ently around the world, finding potential success stories and then

moving them around very quickly,” he adds.

Most importantly, underlying every innovation decision is a deep

understanding of consumer needs. Coca-Cola has applied extensive

consumer research around the globe through a number of techniques

and customer interactions, and then applied their findings to identi-

fy what Strickland calls the different “need states” of a consumer

when in need or want of a beverage. Of the 20-25 different consumer

need states, Strickland‘s team identified approximately 18 related to

health and wellness, a realisation that prompted their work to capi-

talise on the vast potential of health-related needs and led to the cur-

rent focus today.

A big focus on health Understanding the array of health needs has pushed Coca-Cola

heavily into the health and wellness arena to produce products that

deliver a tangible added benefit. “One of the directions that we have

been going in for the past several years that’s bearing more and more

fruit is a focus on health,” Strickland elaborates. “We know that con-

sumers are looking for more. They still want it to taste great, but they’re

looking for additional value-added benefits, and health and wellness is

something that many people are looking for.”

In turn, Coca-Cola has taken a broad approach to health and wellness,

looking at elements such as disease prevention and the various consumer

states of need such as energy, recovery, alertness or refreshment. The more

significant aspects of wellness have required the application of clinical stud-

ies to demonstrate the added benefit.

Minute Maid Heart Wise is an early example of one such product that in-

corporated more weighty health benefits. “Minute Maid Heart Wise is a Minute

Maid Juice that contains something called plant sterols, which actually reduce

your cholesterol,” Strickland says. “We added to that a vitamin version, a joint

health version, which has glucosamine and chondroitin in it.”


Coca-Cola is the world’s largest beverage company and posseses the

world’s most recognised brand. It markets four of the world’s top five soft

drink brands including Diet Coke, Fanta and Sprite, and a wide range of

other beverages, including diet and light beverages, waters, juices and

juice drinks, teas, coffees, energy and sports drinks. Through the world’s

largest beverage distribution system, consumers in more than 200

countries enjoy the company's beverages at a rate exceeding 1.4 billion

servings each day. Below are the most recent additions to Coca-Cola’s

refreshment portfolio:

April 2007 Minute Maid introduces enhanced orange juices for health-

conscious consumers: New varieties include

Minute Maid Multi-Vitamin and Minute Maid

Active.

May 2007 DASANI launches new DASANI

Plus enhanced water beverages: The line,

with zero calories per serving, comes in three

varieties: Refresh + Revive, Cleanse +

Restore, and Defend + Protect.

May 2007 The Coca-Cola Company acquires

glacéau, maker of vitaminwater, for $4.1 billion:

glacéau, the creator and leader of the enhanced

water category, is also the maker of fruitwater,

smartwater and vitaminenergy.

May 2007 Simply Orange Juice Company

keeps it simple for on-the-go consumers with

new single-serve carafes: Simply Orange Juice

Company is expanding its flourishing portfolio of

refreshing, not-from-concentrate chilled juices

and juice drinks with the introduction of new

13.5 fl. oz. single serve carafes.

August 2007 Simply Orange Juice Company

expands offerings to include Simply Apple and

Simply Grapefruit. The juices offer consumers a “closest to fresh-

squeezed taste experience.”

August 2007 Coca-Cola North America and Caribou Coffee launch new premium

ready-to-drink iced coffee in US. Caribou Iced Coffee will be available in three

delicious flavours: Regular, Espresso and Vanilla, and will be packaged in a unique

12 oz. reclosable Alumi-Tek aluminum bottle from Ball Corporation.

March 2008 Ilko Coffee International Premium ready-to-drink expresso-based

coffee beverages: The Coca-Cola Company and illycaffè SpA have finalised

their global joint venture and will be introducing three premium ready-to-drink

coffee products in several European countries in April 2008.

THE LATEST COCA-COLA PRODUCTS

“Innovation is understanding the fundamentalconsumer need, having the capability to satisfythat need, and making sure it fits from a businessstandpoint”


Even more recently, the latest version of the Minute Maid Juice has in-

cluded DHA – the proprietary source of preferred Omega-3 acid, an in-

gredient that can be found in fish oils and is often associated with

claims of enhancing brain function. Also commonly found in baby for-

mulas to aid in early development, Coca-Cola is now applying its herald-

ed benefits to adults. While the idea of Coca-Cola experimenting with plant

sterols and conducting clinical trials to understand true health benefits may

sound like a significant departure from its early days, Strickland is quick to

emphasise that Coca-Cola products have always been based on great sci-

ence – and will continue to be.

One of the foundational items created to ensure this con-

tinued focus on health benefits is The Beverage Institute For

Health and Wellness. This entity is composed of individuals

specifically chosen for their health and wellness backgrounds

to further promote Coca-Cola’s commitment in this arena and to

bring together an external advisory panel. Together with a team

of nutrition scientists and registered dieticians, the institute is

responsible for the company’s clinical research programmes and

serves as a resource for anyone interested in the science of bev-

erages and their role in health and wellbeing.

“The thinking behind creating the institute was twofold,”

Strickland says. “One was to make sure we had a real under-

standing of the health issues that our consumers faced; the sec-

ond was to provide guidance to our fundamental development

work around that and how we should approach understanding

and developing those products.”

Whether it’s health-related or not, one thing’s for sure: under Strickland, in-

novation is a rigorous, championed process deeply integrated into the compa-

ny’s backbone, involving welcoming ideas of every sort from individuals across

the organisation. He points out how innovation begins with a simple idea or pro-

ject concept, before being refined. For example, heart health and weight man-

agement were easy targets to identify as obvious health concerns, and so the

company turned to sterols to aid with promoting heart health.

Though the innovation process itself at Coca-Cola is not exactly linear

or simple, it’s obviously something the company is an ace at. One prime ex-

ample of recent innovation success is Diet Coke Plus – something Strickland

calls out as a “real signal to people” that Coca-Cola had broken the mould.

“When we began to put nutrients in Diet Coke, we crossed an important

line,” Strickland says. “You are now beginning to have a positive impact on

health, and that’s changed how people have felt about Coke, the same way

that the Minute Maid Health Line has changed the way that people think about

Minute Maid because now people understand that they have choices.”

Choices is a light way of putting it – today the entire Minute Maid portfolio con-

sists of more than 100 different flavours and varieties of beverages.

While Coca-Cola has definitely underpinned its expanded range with

great science, it’s also evident that the company continues to do what it

knows best: great taste. Nowhere has this been more evident than in the

success of Coke Zero – one of the most successful launches in company his-

tory, which accounted for nearly one-third of Trademark Coca-Cola growth

in 2006. Today the brand is available in over 50 countries.

“Underpinning Coke Zero is a level of formulation skill around flavour

and sweeteners, and those are two fundamental strengths of the compa-

ny,” Strickland notes. “If you think about what Coca-Cola is able to do bet-


THE BEVERAGE INSTITUTE FORHEALTH & WELLNESS

The Beverage Institute For Health & Wellness supports

nutrition research, education and outreach, with a primary

focus on beverages. The Beverage Institute is responsible

for evaluating emerging wellness trends and ingredients on

behalf of The Coca-Cola Company, conducting clinical

research in support of Company brands and establishing

research programmes that lay the foundation for the

development of new beverages to meet the nutritional and

wellness needs of consumers.

■ R&D: Research programmes lay the foundation for the

development of new beverages to meet the nutritional and

wellness needs of consumers.

Research interests cover a wide

variety of beverage-related nutrition

topics, including hydration, weight

management, fortification, functional

ingredients, and the potential for

delivering the natural goodness of

whole fruits and vegetables through

beverages.

■ Experts: Research direction is

determined through a co-ordinated

effort of our team of nutrition,

medical and technical scientists and

our external Scientific Advisory

Council, which includes scientists and physicians

affiliated with some of the world's most prestigious

research organisations.

■ Contributions: The Beverage Institute is dedicated to

helping consumers and health professionals understand

the role that hydration, beverage ingredients and

personal choice play in a healthy lifestyle.

ter than anybody in the world – and always has been – it is offering bever-

ages that taste great. With Coke Zero, we’ve refined those skills yet further

– in this case to taste more like coke, and to get the sweetness profile just

right for a very broad number of people.”

Because a good chunk of focus in placed on sustaining the pipeline,

Strickland is already talking about how the innovation know-how acquired

from the experience with Coke Zero will be applied to other beverages in

the portfolio.

With solid fundamentals in place around taste and science, a deep un-

derstanding of consumer needs and one of the most robust innovation ap-

proaches, it’s safe to say Coca-Cola is set for long-term sustainability.

“When you think about a pipeline, you really have to think about this as a

dynamic process and the bar continuously gets higher,” Strickland points

out. “There’s a lot of talk about sustainability from an environmental stand-

point, but we have to think about sustainability from an innovation stand-

point as well because consumer’s expectations continue to evolve. We have

to be able to sustain an expanding pipeline, and you can really only do that

by doing the fundamentals right.” �



It’s an unfortunate but undeniable fact

that more people are now overweight

than ever before. Being overweight can

cause issues with one’s self-image, but

more importantly it also poses a considerable

health risk. Obesity is actually set to replace

smoking as the most important cause of heart

disease today. It also increases the risks of

a whole range of other serious health prob-

lems, including type two diabetes, stroke,

kidney failure, gallbladder disease, hyper-

tension and cancer. In the face of this threat

to an increasing number of people’s health,

there is a signifi cant and rapidly growing

market for food products that help tackle this

problem. Currently, the weight loss segment

is already one of the largest health condition

markets in the United States, with expected

market growth of almost fi ve percent. Appe-

tite suppressants now account for 13 percent

of the US slimming aids market.

Infl uencing your appetitePinnoThin, a unique ingredient devel-

oped and patented by Lipid Nutrition is a 100

percent natural, vegetable-based product,

that works by targeting weight gain at the

source. By promoting a feeling of fullness, it

can help to reduce food consumption.

PinnoThin can be taken as an ap-

petite suppressant either before a meal

or in-between meals to help to prevent

the urge to snack. But it can also be used

to create food products that can actu-

ally play an active role in weight management.

High pinolenic acid pine nut oil is a prod-

uct that comes from a natural plant source.

It is based on pine nut oil derived from the

nuts of the native Korean pine tree, Pinus

koraiensis. This tree grows in Korea, Japan,

Siberia and China (Manchuria). China is the

world’s largest producer and exporter of nuts

of Pinus koraiensis to Europe and the USA.

The oil of these specifi c nuts contains

more than 92 percent of poly- and monoun-

saturated fatty acids. It is especially rich in

very long chain fatty acids, such as pinolenic

acid. Pinolenic acid is an omega-6 fatty acid

(C18:3 - 5,9,12) which has double bonds in

the cis confi guration. Korean pine nuts con-

tain about 40 times more pinolenic acid than

for example Italian stone pine nuts.

How does it work?Appetite is a complex mechanism, con-

trolled by many different factors. One of the

most important factors is the role played

by hormones. These send messages to our

brains, either triggering or reducing feelings

of hunger. PinnoThin works by stimulating

the release of the hunger-suppressing pep-

tide hormone, CCK (cholecystokinin). This

hormone sends signals of satiation to the

brain, which can help to reduce prospective

food intake.

Food Solutions takes a look at one solution and the growing threat of an obesity epidemic.

EXAMPLES OF FOOD PRODUCTS ENRICHED WITH PINNOTHIN

Food product Serving size (g) Enrichment Amount of PinnoThin) Percentage of 3g PinnoThin (%) / serving (g) dosage

Yogurt 200 1.5 3.0 100%

Yogurt drink One-Shot 65 4.6 3.0 100%

Fruit emulsion 10 30 3.0 100%

Bar 60 5.1 3.0 100%

Demonstration prototypes have been developed by Lipid Nutrition. Recipes can be obtained on request.

Meeting the health needs of a growing market

HEALTH FOCUS

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Lipid Nutrition B.V., Hogeweg 1,1520 AA Wormerveer, The NetherlandsPhone:+31 (0) 75 629 29 11E-mail:[email protected] www.Clarinol.com www.PinnoThin.com

The benefi cial effects of PinnoThin have

been demonstrated at a dosage of three

grams. The intake can be offered to consum-

ers as so-called ‘one-shot’ concepts in which

the total intake is given in one small serving.

PortfolioPinnoThin is available as an oil and

powder, which means it is suitable for a

wide variety of applications, from dietary

supplements to foods. It is recommended

PINNOTHIN STUDIES CONFIRM SATIETY BENEFITS

New studies demonstrate PinnoThin’s ability to suppress appetite and reduce food intake.

Research into the appetite-suppressing dynamics of functional ingredients is relatively

new, so scientifi c information is still somewhat limited. However, two new studies on

PinnoThin are now emerging with data concluding that it increases the release of the

satiety hormone cholecystokinin (CCK). These studies also showed that PinnoThin FFA, the

form PinnoThin TG is broken down into after consumption, increased the release of another

satiety hormone, glucagon-like peptide1 (GLP1). Both hormones send signals of satiety to

the brain and are essential in regulating food intake.

Study resultsThe two studies, Pasman et al., 2008 and Hughes et al., 2008, tested the effects

of PinnoThin’s active ingredient, the Korean pine nut oil (Pinus Koraiensis), on satiety

hormones and food intake. Both studies evaluated the effects of PinnoThin FFA, PinnoThin

TG and a placebo. Visual Analogue Scales (VAS) were used to measure participants’

degree of hunger, desire to eat, perception of how much they thought they could

eat, fullness and satiety. The results from both studies confi rm PinnoThin’s appetite-

suppressing benefi ts.

In the Pasman study, three grams of PinnoThin were administered to 18 women after

a small breakfast. CCK, GLP1 release and VAS scores were then measured over the next

four hours. A signifi cant CCK increase was observed after consumption of both PinnoThin

FFA and PinnoThin TG. GLP1 increased considerably after PinnoThin FFA. Prospective

food intake decreased after PinnoThin FFA administration.

In the Hughes study, which lasted a full day, 42 women were given Korean pine nut

oil 30 minutes before lunch. Food/calorie intake was then measured at lunch and dinner.

Participants given PinnoThin FFA reduced food intake by nine percent and caloric intake by

seven percent.

Promising results encourage further research

More research is needed on appetite-suppressing functional ingredients to fully

understand their effect on satiety so that we can determine optimal delivery forms and

administration times. Comparative data on PinnoThin FFA and TG forms suggests that the

TG form has a delayed hormone-release response. Since the amount of time it takes for TG

to break down into FFA form in the human gut and infl uence satiety is not yet certain, Lipid

Nutrition is continuing research on this as well as on PinnoThin’s unique satiety benefi ts.

for liquid food products like fl avoured milk,

yoghurt and beverages, and for products like

dressings and fat spreads. It has also been

successfully applied to bakery products like

cookies and nutritional bars.

Technical aspectsIncorporating PinnoThin in food prod-

ucts can be done by replacing or by mixing

the existing fat phase with PinnoThin. Mixing

the ingredient with other oils is easy and will

not cause any problems. PinnoThin can also

be added to a non-fat product like skimmed

milk or yogurt.

Food applications PinnoThin has been successfully applied

to a wide range of food products and at rel-

evant concentrations such as:

• Dairy products, like milk, fl avored milk,

yoghurt and yoghurt drinks.

• Beverages.

• Bakery products (bread, cake, cookies).

• Spreadable fats.

• Nutritional bars.

• Fruit emulsions (ready-to-consume).

SummaryPinnoThin is an unique appetite sup-

pressant – no other appetite suppressant on

the market today stimulates the production

of CCK, which is an objective parameters for

satiety – and it is protected by several inter-

national patents for specifi c uses in food,

food supplements, pharmaceuticals and as

a health component. PinnoThin can help to:

• Promote a feeling of satiety.

• Suppress appetite.

• Reduce meal size.

• Reduce the urge to snack.

• Increase satiety value of PinnoThin forti-

fi ed foods.

Lipid Nutrition innovates and markets

scientifi cally sound lipid ingredients from

natural origin, which improves and maintains

health and well-being. The current product

range comprises:

• PinnoThin: The appetite suppressant.

• Clarinol: Concentrated CLA for weight

management.

• Marinol: Fish oil concentrates (EPA/DHA)

for heart health and brain development.

• Betapol: Mimics the structure of human

milk fat for infant formula.

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motic effects would normally cause gastric

distress. Based on the scientifi c evidence

available, an exemption for the laxative

warning (mandatory for foods containing

more than 10 percent of polyols) is justi-

fi ed and Jungbunzlauer dedicates effort to

achieve a change in the current legislation.

All naturalAlongside health, ‘natural’ products are

one of the main trends we see in the modern

food industry. Consumers are not only in-

terested in the ‘health factor’ of their foods

– mainly with regard to calorie and sugar

content – but are increasingly concerned

about how natural their food is and where

it comes from. As a sugar alcohol (also called

polyol) erythritol has to be la-

belled with 2.4 kcal/g according

to the most recent approval. The

true calorie load of erythritol,

however, lies far below the standard polyol

value of 2.4 kcal/g. Actually it is close to zero.

First proposals from the Commission Direc-

tive proposals to change this are available,

which is backed up by scientifi c literature and

the opinion of the European Commission’s

Scientifi c Committee on Food. The results of

stakeholder discussions are awaited with sus-

pense. Once passed, the new regulation will

herald the formation of a new group of sweet-

eners, currently consisting of only erythritol:

all-natural and delivering no calories.

High digestive toleranceThe metabolic behaviour based on the

small molecule size is what distinguishes

erythritol from other polyols. Beside the

much lower calorie level this has also

another major advantage: while all other

polyols have the distinct disadvantage of

causing digestive distress, erythritol is

well-tolerated. Scientifi c studies show that

at typical consumption levels, erythritol has

no laxative effect. Its small molecular size is

the key factor since this allows it to be ab-

sorbed quickly in the upper digestive tract,

so that very small amounts reach the lower

tract – where degradation of polyols and os-

Nutritional benefi t and natural - two sides of erythritolJungbunzlauer’s erythritol, recently approved all over Europe, is a sugar alcohol that is low in calories, very tolerable in its digestion and all-natural in addition, a very low glycemic index makes it a unique product.

fermentation. Based on non-GMO natural

plant carbohydrates such as sugar or glu-

cose, fermentation of erythritol is complete-

ly natural. This provides erythritol with an

outstanding position amongst other sugar

replacers on the market.

In nature, erythritol occurs in items such

as grapes, soy sauce, wine, honey and even

cheese. This means that consumers are

physically used to it and that the likelihood

of allergies is low.

Beside highly benefi cial and physi-

ological benefi ts such as a zero GI and

non cariogenicity, it is important to stress

that erythritol is not only a valuable sugar

replacement based on nutritional facts,

the taste qualifi es it. Erythritol has a clean

sweet taste and a sensory profi le very

similar to that of sucrose. With a sweeten-

ing power of about 70 percent of sucrose,

it is sweeter than most other polyols. Thus

in many applications, erythritol can stand

alone as a single sweetener. In addition, it is

also a very good blending partner.

Either as single sweetener or in blends

Jungbunzlauer’s erythritol is suitable for

a wide variety of applications. Amongst

these are sugar-free chewing gum, table

top sweeteners, cereal bars and even sugar-

free/sugar-reduced chocolate. Furthermore,

it provides a healthy, low-calorie method

of sweetening dairy products such as ice

creams and yogurts.

Ferid Haji is Product Manager Sweeteners, Jungbunzlauer International AG. Tel. +41 61 2955 279, email [email protected] or for more information please visit www.jungbunzlauer.com

FERIDHAJI

Ferid Haji graduated in 2000 as food

technologist at the Technical University,

Berlin. He joined Jungbunzlauer in

2001 as Technical Service Manager

and was assigned to Product Manager

Sweeteners in 2005. His main

responsibility is the development of the

European erythritol market.

Erythritol, a naturally-occurring sugar

alcohol, has been commonly used as food

ingredient in the US and Japan for many

years. Since the middle of February this

year, it has also been fully approved across

Europe for use in food products. Currently,

erythritol is the only low calorie, natural

sweetener anywhere in the world enjoying

this regulatory status.

Erythritol is derived via a natural fer-

mentation process, rather than from cata-

lytic hydrogenation. On an industrial scale,

erythritol is obtained from microbial yeast

ASK THE EXPERT

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On June 12, 2007, the agricul-

tural ministers of the European

Union adopted a new regula-

tion, no. 334/2007 on organic

production and labelling,

which will become effective on January 1,

2009. This will replace the well known or-

ganic regulation 2092/91/EEC and should

be connected to the introduction of a

new bio-logo replacing the old EU organic

label. However, the new label is delayed

until January 1, 2010 since the intended

one has been withdrawn after protest from

a supermarket chain.

Here, one aspect will be considered,

namely the addition of fl avourings to or-

ganic products. According to Annex VI only

natural fl avourings and fl avour extracts

are allowed in organic products as long as

they meet the fl avour directive 88/388/EEC

which is under revision as well. The fl avour

directive describes the production, declara-

tion and quality of food fl avours regulating,

for example, the content of so-called active

principles and limiting contaminants like

mycotoxins, heavy metals and so on.

Dr. K.W. Quirin

is a chemist and

received his PhD

in 1984 from

the University of

Saarland, Institute

of Pharmacognosy

and Analytical

Phytochemistry.

For 22 years he

has worked as

CEO of FLAVEX

Naturextrakte

GmbH, a company

producing

specialty botanical

extracts for

cosmetics,

food and food

supplements

on the base of

supercritical

CO2-extraction.

New regulation of flavouringsin certifi ed organic products

ASK THE EXPERT

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“Giving aroma to organic products needs the addition of organic

fl avours in the future”

This means non-organic natural fla-

vours were allowed in certified organic

products. For example, conventional herb

and spice extracts, which are mostly minor

constituents in finished products, could be

used in certified organic food. At the time

there was no real need or justification for

organic herb and spice extracts for flavour-

ing purposes before. Meanwhile, a more

restrictive view has been established. All

components of flavour formulations must

be certified organic and meet Annex VI of

the EEC organic regulation. Giving aroma

to organic products needs the addition of

organic flavours in the future.

Since a bottleneck for certif ied organic

spice extracts is expected based on the

coming regulation, transitional periods

will be conceded. However, inspection

bodies are already obliged to establish a

timetable clearly demonstrating the date,

from which organic f lavours have to be

used in organic products.

Supercritical CO2-extraction meets or-

ganic criteria and is perfectly suitable for herb

and spice extracts. The versatile method can

produce essential oils (selective extracts)

anti-microbial property at the same time

are part of the organic program, as are herb

and spice extracts, allspice, caraway, car-

damom, cinnamon, chili, cumin, ginger and

turmeric. Certifi ed vanilla extracts are also

available with different vanillin content and

other products will be coming soon as there

is a general trend towards certifi ed organic

products. All these extracts are powerful

tools for fl avourists and food technologists

to create premium fl avour qualities.

In the food supplement segment we have

recently successfully put on market CO2-

extracts of seabuckthorn, evening primrose

or rosehip with high concentrations of unsatu-

rated fatty acids, as well as specialty extracts

of amaranth, millet and pomegranate seeds.

Rounding up the program there is a newly

launched organic paprika CO2-extract, which

can also be used as a colorant. Expand your or-

ganic products with exciting new fl avours and

colours composed of organic CO2-extracts with

their fresh and authentic fl avour profi les.

as well as concretes (total extracts) under

gentle conditions with high grade authentic

composition. CO2-extracts derived from bo-

tanical materials coming from organic farm-

ing are certifi ed organic if the production is

controlled by an organic auditing body.

FLAVEX Naturextrakte GmbH has al-

ready launched a broad range of certifi ed

organic CO2-extracts. Sage and rosemary

antioxidants retarding oxidation and having

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With annual net sales of $14.9 billion, including the comany’s

$1.2 billion proportionate share of joint venture net sales,

General Mills is one of the world’s leading global manufac-

turers and marketers of consumer food products. Based in

Minneapolis, the US food giant has a huge presence in

Europe, where its Haagen-Dazs ice cream products, Old El Paso Mexican food

and Green Giant vegetables are amongst the most well known brands on the

continent. With the company recently celebrating the first anniversary of its

Worldwide Innovation Network (G-WIN) initiative, Food Solutions caught up

with programme director Jeff Bellairs to find out how G-WIN is helping General

Mills improve its approach to new product development.

FS. First of all, could you tell us a little bit more about the idea behind

General Mills Worldwide Innovation Network? For instance, what were the

key drivers behind the launch of your initiative?

JB. Actually it was our Senior Vice President of Innovation and

Technology, Peter Erickson, who created a dedicated group to work on

open innovation, and that happened about three years ago. He set aside

some resources, put a team together and asked us to put together a

comprehensive programme that would allow us to reach out and find

new partners on the outside with new capabilities – perhaps a new

process, a new package, new ingredients or a new product. In other

words, things we could bring in and plug into our innovation pipeline

SWITCHING ON TOR&D SUCCESS

Jeff Bellairs, General Mills’Director of ExternalInnovation, explains whylooking beyond the traditionalboundaries of the enterpriseis proving a fertile breedingground for new productinnovation.

INNOVATION FOCUS

JEFF BAILARS:aug08 14/8/08 13:09 Page 56

here to accelerate some of the innovation initiatives al-

ready taking place within the company.

So we formed the group about three years ago, and it

was just over a year ago that we added the General Mills

Worldwide Innovation Network (G-WIN) moniker. The first

couple of years were really spent trying to figure out how to

most effectively put together an open innovation pro-

gramme given our organisational culture.

FS. It’s not the easiest thing to do. Where did you look for

potential partners?

JB. We’ve done three different things. We’ve created a web

portal that’s on the General Mills home page so that people

can approach us with technologies that are patented or

patent-pending. We’re trying to get the word out that we’re

interested in new technologies, and if people think they

have something that might benefit one of our businesses,

there’s now a way for them to start a dialog with us.

We’re also working with some innovation intermedi-

aries – companies like NineSigma and YourEncore – that can

help us go out and find expertise. We’re always looking for

people who might have a technology or the ability to help

us solve the big technical problems that are challenging our

businesses. So that’s the second way, working with the in-

novation intermediaries.

Finally, I have a dedicated team that spends an awful lot

of time answering the phone and also getting out and trav-

elling from place-to-place, really trying to find innovation

where it’s occurring. So we’re travelling to different coun-

tries, we’re going to innovation fairs, food fairs – anyplace

where we think there is a likelihood that there is a partner

out there working to create some new product or process

that could benefit one of our businesses.

FS. You recently celebrated the first anniversary of the

GWIN project. So what impact has that initiative had on General Mills’ R&D

efforts since its launch?

JB. I think it’s opened our eyes to the tremendous amount of resources out

there – the creativity and innovation potential that does exist outside the

company. So we have examples at this point where we’ve brought in prod-

ucts that are ready-to-go and have proved that there is a market out there

for them. When married with General Mills’ scale and one of our brands, the

belief is we can create a bigger business that benefits both General Mills

and the new partner. So we’ve brought in finished products, we’ve licensed

technology that has enabled us to create a new platform of consumer ben-

efits in our Go-gurt Fizzix product, and we have partnered much more close-

ly with a number of our key suppliers to develop some very innovative


In its first year, the G-WIN team at General Mills received more than

200 concept submissions. Because of its efforts to drive open

innovation, the G-WIN team was able to generate major new product

introductions, as well as important technology advancements and key

industry partnerships. 2007 innovation highlights include:

Fiber One Chewy Bars: General Mills teamed with an exclusive partner

on a fibre ingredient to develop a delicious snack bar with nine grams

of fibre per bar. Fiber One Chewy Bars have far exceeded performance

expectations. Within months of the product launch, Fiber One bars were

among the top 10 best-selling grain bars on the market.

Progresso Reduced

Sodium soups:

Through a new

proprietary partnership

with an external

company with

considerable expertise

in healthy foods,

General Mills was able

to source a great-

tasting new lower-

sodium ingredient for

its Progresso Reduced Sodium soups. The new reduced-sodium soups

are performing very well, and are also bringing new consumers to the

brand. Around 50 percent of sales for lower-sodium Progresso soups

introduced in 2007 came from consumers who weren’t previously

buying Progresso. In the first year on the market, sales of Progresso

Reduced Sodium soups ranked in the top third of the ready-to-serve

soup category. Based on this success, additional soup flavours were

added to the line later in 2007.

Yoplait Go-Gurt Fizzix yogurts: General Mills also facilitated the

launch of Yoplait Go-Gurt Fizzix, a first-of-its-kind carbonated yogurt

that General Mills produced after licensing a product and process

patent from Brigham Young University, and the Pillsbury Cooler, a state-

of-the-art, environmentally friendly mobile cooler technology created

through a partnership with a refrigeration company. In addition, General

Mills’ efforts helped create a new food science division within

YourEncore, an innovation services company helping organisations

accelerate innovation by leveraging the expertise of retired scientists

and engineers.

G-WIN SUCCESS STORIES

Increase in the number ofinnovation concepts

submitted to General Millssince G-WIN began

300%


proprietary ingredients that are being used in a number of our new prod-

ucts, such as Fiber One bars and Progresso Reduced Sodium soup.

FS. Are there any particular products you can talk about in greater detail?

JB. To generate big ideas for new consumer solutions in the area of

weight management, General Mills created a cross-functional team to

leverage research and expertise from across the company. Among other

ideas, the team suggested that Progresso develop a ‘light’ soup that

could qualify for a ‘zero points’ value per serving with Weight Watchers.

Progresso tested the idea, developed the product and then leveraged

the General Mills’ strategic sourcing team to create an external partner-

ship. In collaboration with Weight Watchers, General Mills then launched

Progresso Light, the first consumer packaged product in any grocery cat-

egory to carry the Weight Watchers endorsement with zero points value

per serving.


Jeff Bellairs provides his key lessonsfrom the G-WIN programme.

Get some wins on the board early: A number of the

things that we did initially weren’t necessarily the biggest

projects or the biggest ideas, but we wanted to

demonstrate to General Mills’ leadership what an open

innovation programme

looked like for us as a

company. Every company

has a unique culture, unique

capabilities, and so you

really need to demonstrate

what open innovation could

bring to your business.”

Move from serendipity to

strategy: “Serendipity gets

you started, it’ll always be a

part of our programme, but

we want to spend more time

really focused on finding those global leaders who have

technologies of products that match up directly with our

business needs. Sooner or later, you need to focus on

what you are doing in a much more strategic way.”

Keep your eyes (and mind) open: “It’s really opened our

eyes to how much potential there is out there. We will

continue to focus resources in this area to try and be the

first company to find that next big technology that may

exist out there in someone’s lab or their garage or some

foreign market. You never know where the next big

technology shift will come from.”

KEY LEARNINGS The results are impressive. All five flavours of Progresso Light deliver

just 60 calories, with four grams of fibre and a full serving of vegetables per

serving, and all five quickly moved into the Top 20 of the best-selling prod-

ucts in the ready-to-serve soup category.

FS. It’s certainly been a busy year. Have there been any unexpected benefits

to come out of G-WIN so far? Anything you didn’t foresee that has maybe im-

proved operations or improved the way you conduct your research?

JB. We’ve found that one of the great benefits of open innovation is its abil-

ity to leverage the combined experience of General Mills and our external

partners to reduce risk. The ultimate goal of any open innovation pro-

gramme is to find ready-to-go products that have already es-

tablished a pedigree in the marketplace.

A focus on open innovation has

been a critical competitive advan-

tage for General Mills. We believe

the next big advance, which may re-

shape the food industry, has already

been invented by someone outside the company, and our

goal is to be the first to find it.

FS. You mentioned a couple of products that have been launched in the

US, but I know that this is a global initiative, isn’t it? What sort of impact

are you having in terms of collaboration in terms of the rest of the world,

Europe in particular?

JB. This has largely been a US effort. We do, however, have a partnership

with a company in France to produce refrigerated Mexican meals under the

Old El Paso brand, and so that’s an example of where we’re reaching out-

side and leveraging somebody else’s capabilities and expertise to help us

create a new business. Those products are currently in tests there.

FS. So do you see those type of collaborations increasing over the next

couple of years?

JB. Certainly. We think the pace of innovation in this industry is increasing,

and one of the ways that we can be more nimble as a large food company

is to partner with people on the outside who have that unique expertise.

FS. Are there any challenges inherent in this type of collaboration – for in-

stance, in managing intellectual property rights and protecting sensitive

information, those types of things? What challenges are there in running

an open innovation programme such as this?

JB. One of the things we’ve found is that it is critical to develop a relation-

ship based upon trust, and it takes a significant amount of time spent face-

to-face with potential partners to develop that level of trust. I think that’s

one of the things that has been a significant learning for my group – that

there are only so many of these relationships that you can physically pur-

sue because of the time element. That’s causing us to be more strategic in

the types of relationships we’re pursuing.

When we began the initiative a couple of years ago, we were largely

following leads wherever they came from. It was something of a serendip-

itous process, but now we’re stepping back and trying to scan the globe to

really find out who are the global leaders in certain areas of technology and

then proactively building relationships with them. So it’s a matter of mov-


ing from serendipity to strategy, and one of the things driving that is the re-

source intensity needed to build solid relationships.

FS. Do you have systems in place to manage the handling of sensitive in-

formation and intellectual property?

JB. From a General Mills standpoint, owning the intellectual property is

not critical. What we’re looking for is some kind of clear advantage in the

marketplace, and so it may be that the ownership of the IP remains with

the other partner, but we get a marketplace advantage through exclusiv-

ity for a product category or for a geography, or perhaps some kind of a

headstart in the marketplace before that technology can be used by our

competitors.

These intellectual property concerns are also the reason that at our

website we say that we only will accept patented or patent-pending tech-

nologies. So we’re not looking for ideas; we’re looking for things that are

more advanced, and there is some intellectual property protection afford-

ed to people who have applied for a patent or have actually gotten the

patent and have it in place.

FS. Why do you think this type of collaborative approach is proving so suc-

cessful in nurturing a culture of innovation at General Mills, and do you ex-

pect this type of relationship to be adopted by your competitors?

JB. I think open innovation is one of those things that’s a real

buzzword right now, and I think there are lots of companies

who are looking at the success of other industries, of other

companies, and wondering if it’s gonna work for them. I per-

sonally travel to a lot of the conferences focused on open in-

novation, and we do see a lot of our food company peers in

attendance and very interested in the programmes that we’re

pursuing as well as what other people are doing. I think that

when you start one of these programmes, you quickly realise

that it is something that is a bit of a cultural change. They’re

asking scientists to play a different role in the innovation

process, so rather than being the sole creator, we’re now ask-

ing them to be an orchestrator, to find interesting pieces of

technology that are on the outside, to work to bring them in

and connect them with pieces on the inside. So for some of our

scientists, it’s a different role, and I think for General Mills it’s

a different way of working. We have to focus and build part-

nerships; certainly for some of the smaller companies we are working with,

there is some concern in working with a big company, and again, we have

to spend the time to really be upfront with the potential partner and explain

to them the deal structures and the benefits that they could receive by pur-

suing a relationship with General Mills.

FS. I know health and nutrition is a key area for companies in the food sec-

tor right now. Have you made many advances in health and nutrition as a

result of this programme?

JB. We have a number of different initiatives. Some of them are collabo-

rations with key suppliers, some of them are consortiums that we joined

or are working to form, so there are a number of transformational tech-

nologies that are in our pipeline right now. I think if you look at some of

the things that have already hit the market – the Fiber One bars that are

doing extremely well in this country, for instance – their success is due in

large part to our collaboration with a supplier that gave us a unique in-

gredient. We also have a very successful line of Progresso reduced sodi-

um soups, and one of the key ingredients that allowed us to reduce the

sodium without sacrificing flavour came through a very close collabora-

tion with a supplier to develop a new ingredient. So a couple of things

have hit the market, but there are a number of larger initiatives that are

still in the developmental pipeline. �


“I think it’s opened oureyes to the tremendousamount of resources outthere – the creativity andinnovation potential thatdoes exist outside thecompany”

Jeff Bellairs



lect the data needed to make an informed

evaluation. Until more results are available,

JECFA, the joint FAO/WHO Expert Committee

on Food Additives, has recommended that

appropriate efforts should be made to reduce

the concentration of acrylamide in food.

The science behind the problemThe main mechanism for acrylamide

formation in starchy foods involves two

common components of these foods: reduc-

ing sugars and the amino acid asparagine.

The sugars react with asparagine when the

food is baked or fried at high temperatures

and through a cascade of reactions coverts

the side chain of asparagine to acrylamide.

These reactions are part of the usually

heat-induced Maillard reactions, which

also produce the brown colour and char-

acteristic tasty flavour of baked, fried and

toasted foods.

In search of a solutionIntensive research is being carried out to

investigate ways to prevent acrylamide for-

mation in foods by optimising thermal input

during baking or frying, and changing recipes

and raw ingredients.

For potato-based products, the main focus

is on the reduction of sugar levels as this is a

major factor in acrylamide formation. This

includes the selection of potato varieties with

low reducing sugars levels, controlling storage

conditions from farm to factory and breeding

new potato varieties with lower reducing sugar

levels. Further research has examined other

potential methods, including the decrease in

cooking temperatures, addition of amino acids

and alternative frying techniques.

In cereal food products, process and

recipe changes that have been made to

decrease the acrylamide formation include

the reduction of time and temperature

during baking, pH reduction, replacement

of inverted sugar syrup with sucrose solu-

tion, addition of competing amino acids and

choice of baking powder.

However, the methods described above

may limit not only acrylamide formation

but also the formation of desired Maillard

products. Taste, appearance and other

sensory characteristics like crispiness may

also be affected.

Acrylamide is classifi ed as “probably

carcinogenic to humans”, based on studies

conducted in mice and rats by the Interna-

tional Agency for Research on Cancer (IARC).

Studies carried out at the WHO and the FDA,

as well as other research using food consump-

tion data from several countries and data from

the IARC European Prospective Investigation

into Cancer and Nutrition (EPIC) study have

estimated an acrylamide exposure of 0.3 to

0.8 μg/kg body weight per day.

The potential risk posed to humans by

this dietary exposure to acrylamide is not yet

known, but numerous studies are currently

in progress on an international level to col-

The appeal with enzyme technology

is that it is a natural solution that

does not infl uence the product’s

taste or appearance a double

bonus for food manufacturers that

are looking for acrylamide-reducing solu-

tions and worry about the continued appeal

of their products to consumers.

The natural problemAcrylamide is naturally formed when

starchy foods, such as biscuits, crackers,

snacks, French fries and crisp bread are baked

or fried at high temperatures – a discovery

made by Swedish researchers in 2002.

Natural solutions for tasty food Bioinnovative enzymes can substantially reduce acrylamide in several food products without changing their look, feel, or fl avour. The enzyme asparaginase has been proven to reduce acrylamide levels by up to 90 percent in a broad range of foods, such as biscuits, crisp bread, crackers, snacks and tortilla chips. By Thomas Erik Nilsson.

INDUSTRY INSIGHT

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the purpose of the Toolbox is to offer the most

effi cient solutions for acrylamide reduction

to the industry. The Toolbox is a combination

of suggestions for changes in raw materials,

processes and recipes. However, it is also

stated that it is of utmost importance that the

brand-specifi c customer acceptance of the

fi nal products is not impacted.

In this context, Acrylaway is a superior

solution.

A new future beckonsToday’s consumers are conscious

and cautious about what they eat. Health

and food quality are major drivers for the

market right now and food safety is a key

consumer concern. It is a fundamental

need for society that our food is safe and

healthy. With enzyme solutions like Acry-

laway, food manufacturers can now offer

end-consumers food products with reduced

worries regarding acrylamide.

The natural solutionOne very effective means of reducing

acrylamide formation without affecting taste

or appearance is the enzymatic removal of

the amino acid asparagine by converting it

into aspartic acid. The enzyme type responsi-

ble for this action is called an asparaginase.

Novozymes’ acrylamide-reducing solu-

tion, Acrylaway, lowers acrylamide levels by

up to 90 percent in a broad range of foods

such as biscuits, crisp bread, crackers,

snacks and tortilla chips without infl uencing

product taste or appearance.

The process that gives the delicious brown

crust and fried or baked fl avour also causes

acrylamide. Use of Acrylaway converts the as-

paraging enabling the other ingredients stay

part of the Maillard reaction. So the crust and

taste remain while reducing the acrylamide.

In addition to acrylamide determination,

samples of semi-sweet biscuits, crackers,

crisp bread and pretzels have been analysed

at an external laboratory for their fi ngerprint

of volatile aroma components. The fi ngerprint

showed that the same aroma components are

present in the control sample as well as the

sample where Acrylaway had been added.

In the area of potato-based products,

Novozymes believes it has the technical

solution that reduces acrylamide by 50-60

percent in the industrial production of French

fries. The implementation in the industry

has shown that cost-in-use still needs to be

fi ne-tuned. However, we expect to fi nalise

this work together with the industry, so that

cost-effi cient acrylamide reduction is also

possible with French fries.

Rethinking invites recognitionNovozymes received Generally Regarded

as Safe (GRAS) notice from the US Federal

Drug Administration for Acrylaway in Novem-

ber 2006, being the fi rst product of its kind

to receive that notice. And in June 2007,

Acrylaway received regulatory approval from

the Danish authorities and is the fi rst aspara-

ginase to receive regulatory approval from an

EU body. Acrylaway also received a positive

evaluation at the JECFA meeting in June 2007.

In December 2007, asparaginases were of-

fi cially added to the so-called CIAA acrylamide

reduction Toolbox. CIAA is the Confederation

of the Food and Drink Industries of the EU, and

Rethinking tomorrow made enzyme so-

lutions like Acrylaway possible — and gave

food manufacturers a natural solution to a

natural problem.

Novozymes is the world leader in bioinnovation. Together with customers across a broad array of industries we create tomorrow’s industrial biosolutions, improving our customers’ business and the use of our planet’s resources. Read more at www.novozymes.com.

“The main mechanism for acrylamide formation in starchy foods involves

two common components of these foods: reducing

sugars and the amino acid asparagines”

Thomas Erik Nilsson is a Global Product Launch Manager at Novozymes, and is

responsible for launching new bioinnovative solutions to the Food and Beverage industries

worldwide. Thomas holds a MSc. degree from the Danish Technical University. Since

graduation, he has worked for 18 years at Novozymes, focusing on marketing across a

wide range of industries.

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problems of low capacity, high energy costs,

high capital investment in large plants and

potentially high environmental costs. The

new TIXOTHERM process from Niro, how-

ever, is much more effi cient.

The challenge is to create a free-fl owing,

non-caking powder from the liquid whey or

permeate. This is diffi cult because these

dried whey products tend to be hygroscopic

and thermoplastic. They will tend to absorb

water from the surrounding atmosphere and

become sticky, making powder rock solid –

even in sealed bag.

The four-stage TIXOTHERM process,

however, converts the liquid whey into a

free-fl owing, non-caking powder. The water

content of the whey or permeate is initially

decreased in an Agitated Film Concentrator,

resulting in a water content of just 15 per-

cent. High sheer rates within the concentra-

tor keep the viscosity of the product paste

low owing to its thixotropic nature. The

product passes to a Mixing Crystalliser that

increases the dry mater content, encourages

further lactose crystallisation and creates

a semi-hard crystallinic paste with a friable

texture, easy to particulate. Final drying is

performed in an Agitated Fluid Bed and a

VIBRO-FLUIDIZER at high temperature to in-

hibit the growth of micro-organisms. Process

To say that the dairy industry is

awash with whey and milk permeate

to be processed is no exaggeration.

Booming cheese and WPC produc-

tion has left the dairy industry with increas-

ing amounts of whey and whey permeate to

be processed. Meanwhile, the demand for

whey solids has increased, partly being used

for lactose manufacture, but a considerable

amount is being evaporated, pre-crystallised

and spray dried.

The traditional drying processes for per-

meate are high in energy consumption and,

as the world becomes ever more environ-

mentally aware, the need to reduce energy

consumption wherever possible is high on

the list of requirements for all dairy process-

ing plants.

A new breakthrough from Niro has made

the processing of crystallised and non-cak-

ing whey and permeate powder much easier,

more effi cient, less expensive and more en-

vironmentally acceptable.

Whey and permeate powder is in demand

all over the world as a valuable food, particu-

larly for sports enthusiasts. However, manu-

facturing a dry powder from the liquid has

always been diffi cult. Traditional permeate

drying technology methods have inherent

The new whey and permeate drying processair is cleaned in a SANICIP bag fi lter and the

retained powder returned to the process.

The whole plant is very compact saving

approximately 50 percent in building size

with the consequential savings in building

costs. Comparisons have shown that the

TIXO-THERM process consumes only 70

percent of the energy of the traditional ‘wet

process’.

The TIXOTHERM pilot plantA TIXOTHERM pilot plant is now avail-

able in the Niro test facility in Copenhagen.

This provides customers with the op-

portunity to try the TIXOTHERM process

with their own product and optimise the

process before making a decision to buy.

When the process is proven for their spe-

cial application they can invest confi dently

knowing that they can be in full production

straight away.

Henrik JT Jensen is Area Sales

Manager at Niro A/S. With a BSc in

Food Technology, Jensen has spent

many years selling process solutions for

the food industry, including Niro drying

technology for the diary industry – in

particular, to high quality baby food,

whey and milk powder plants.

“The need to reduce energy consumption

wherever possible is high on the list

of priorities”

INDUSTRY INSIGHT

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Migros is one of Switzerland’s largest enterprises and

its leading retail organisation. Consistently growing

year on year, the company recorded an impressive

6.2 percent growth between 2006 and 2007, despite

the current challenges in the retail and food markets.

Nevertheless, Herbert Bolliger, the fi rm’s charismatic CEO, concedes

there are signifi cant challenges ahead.

The biggest test the fi rm faces is the rising price of food, and main-

taining the diffi cult balancing act between offering value for money while

at the same time retaining the company’s reputation for quality. Bolliger

is committed to facing this challenge head on, and wants to continue

delivering top products to consumers as well as making a profi t. “Our

customers tell us that they get the best value and quality for their money

at Migros,” he says, “and I’m convinced that our economic success is

based on products and services that offer distinct added value.”

As a co-operative company, Migros has grown steadily over the

years to become Switzerland’s largest supermarket chain and its big-

gest employer. Founded in 1925 in Zürich as a private enterprise by

Gottlieb Duttweiler, the company has come a long way from the days

of selling only coffee, rice, sugar, noodles, coconut oil and soap from

trucks that went from one village or hamlet to another. Today, the

company is a community of regional co-operatives and a number of

subsidiaries, combining a number of elements such as retail, tourism,

culture, education and sport.

“We are very proud of our co-operatives – and grateful to them,”

says Bolliger. “Our charismatic founder, Gottlieb Duttweiler, gave his

fi rm to the Swiss people and we now have over two million members.

This means that Migros is deeply embedded in Switzerland’s culture

and has a special place in the hearts of the Swiss population.”

With competitors slashing prices, food costs rising and consumers demanding more information and choice, surviving in the food retail industry is tough. Herbert Bolliger, CEO of Swiss food giant Migros, explains what it takes to stay at the top.

SUCCEEDING IN TOUGH TIMES

By Rebecca Goozee

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“Migros is deeply embedded in

Switzerland’s culture and has a special

place in the hearts of the Swiss population”



But the challenges don’t stop there. The retail trade today is

characterised by increasing globalisation and the opening up of both

domestic and international markets, which has led to the arrival of

competitors offering hard discounts. “These competitors from abroad

have arrived to a very modestly growing Swiss market and brought

with them heightened competition,” says Bolliger. Despite this, he

feels his company is well placed to compete, and has reacted to this

changing market through a partnership with Denner Discount, Swit-

zerland’s leading food discounter. Bolliger explains that this has given

Migros a share in the growing discount market, with all of its supple-

mentary product ranges. “A large part of our growth is down to this

partnership,” he explains. “Large purchasing volumes are necessary

to achieve more favourable prices, as well as more uniform product

quality, lower administrative costs and simplifi ed procedures.” All of

which ultimately benefi ts the consumer, enabling Migros to offer low

prices and keep its customers happy.

Quality and safetyToday’s consumers are more interested than ever in the products

that they eat and drink, and as such they are extremely well informed,

interested and critical, concerned with health claims, labelling and the

origin of the products they consume. In order to make sure that his cus-

tomers are well informed and happy, Bolliger established an M-Infoline,

The company’s unique structure consists of 10 regional co-

operatives, whose main task lies in ensuring the distribution of

high-quality, inexpensive products. “Our co-operatives permit direct

contact to our regional suppliers on the one hand, and also ensure

the active and emotional participation of the co-operative members,”

explains Bolliger. “Thus the co-operative form has vast advantages

that overweigh the slightly longer decision-making process. Of course

we have to be as fi t as any company listed on the stock market, but we

can reinvest our profi ts to reduce prices and raise the quality of our

products at the same time.”

Rising costsIndeed, with food prices rising across the continent, keeping costs to

a minimum is crucial to maintaining a favourable market position. While

Bolliger acknowledges that high food prices are becoming a major prob-

lem for the industry, he is adamant that the company is working hard to

keep costs low. More importantly, it’s not making any concessions on

the quality side. “We have adapted to the changing needs of consumers

and are aiming at innovations that bring added value – whether it be in

the functionality, the pleasure experience or the environmental benefi t

of the product,” says Bolliger. “We’ve been developing our assortment

according to different price ranges, distinguishing more clearly between

the simple and the more sophisticated requirements.”

In its annual sustainability report Migros

sets out its economic, ecological and

social activities. As part of its ecological

focus for the future Migros has been

concentrating on a number of factors:

• Monitoring energy consumption, as it has

done for over 30 years

• Recycling 64 percent of operational waste

• Taking back 13,000 tonnes of customer

waste

• Membership of the WWF Climate Group

• Inclusion of Globus, Interio and Fitness

packs into Migros’ climate protection goals

• Carrying out a pilot experiment on

refrigerant switch over in the Dietlikon store

• Opening of Minergie points of sale in

Schwarzenburg BE and Buchs SG

• Use of biodiesel in eight regional Migros

co-operatives

• Carbon offsetting of all business fl ights for

Migros employees

• Participation of over 1000 employees in the

‘bike to work’ campaign

A consultant that evaluates

corporate reputations has named

Migros as one of the world’s

most respected companies. The

New York-based Reputation

Institute recently ranked the Swiss

supermarket chain in 10th place

in a list of 200 companies, headed

by Japanese fi rm Toyota. The auto

giant is globally ranked Number 1,

ahead of Google, the US internet

company, and Ikea, the Swedish

furniture retailer under the annual

Global Pulse survey.

The rankings were based on

standardised scores of one to 100

based on online interviews with

consumers in February and March

about the reputations of more than

1000 high-profi le companies in 27

countries. The survey measures

the perceptions of consumers

familiar with the companies,

through indicators of trust, esteem,

admiration and good feeling.

In Swiss rankings, Migros

maintained its fi rst place position

among the country’s 10 best-

known companies, increasing its

score from last year to 81.5 from

75.2. Migros was followed by

Vevey-based food giant Nestlé

(75.8), pharmaceutical company

Novartis (68.4) and engineering

fi rm ABB (65.5) as the companies

most respected in Switzerland,

all them marking better scores

than the previous year. Money-

losing bank UBS ranked the

worst in the country, plunging

13.8 points to 53.5 amid fi nancial

problems, bad investments in

the US subprime market and

plummeting share prices.

KEEPING THE CUSTOMER SATISFIED


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where customers can fi nd information about products and

services, or can offer ideas, suggestions or complaints, six

days a week, by phone, email or letter. “Every day Migros serves about

1.4 million costumers – that means that we are constantly in direct

contact with them. Customers’ enquiries are answered individually

and passed on to the appropriate offi ces within Migros,” he says. “We

have a website, an internet portal and an in-house customer magazine,

and also interview 100,000 customers and passes-by every year to fi nd

out how we can improve our services.”

However, it is not just being able to voice their views that is

important, but rather having the right products, following the right

processes at the right time, with an effective supply chain. An effec-

tive supply chain needs to have full traceability, both from an opera-

tional and a compliance perspective. “Full traceability of a product

and its ingredients is our highest priority,” says Bolliger. “It is in-

credibly important for us that we have precise and trustworthy in-

formation on the ecological and social production conditions.” At all

stages of the supply chain, Migros relies on uniform standards, from

the agricultural primary production, via processing, to the ready-for-

sale product in the shop. As a result, all fruit and vegetables are pro-

duced according to the worldwide

standard Global-GAP (Global Good

Agricultural Practice). Global-GAP

ensures that all producers comply

with the same regulations with

regard to food safety, fertilisation,

industrial safety and environmental

protection. The Swiss-GAP Associa-

tion has adapted the global stand-

ard to the conditions in Switzerland

with its smallholders.

Over 10 years ago, Migros elabo-

rated a code of conduct called the

Business Social Compliance Initia-

tive (BSCI) Codex, obliging all non-

food suppliers to comply with social

working conditions – such as a living

wage or a safe working environment. Two years ago, food suppliers

were also asked to acknowledge the Codex and by the end of 2007,

98 percent of Migros food suppliers, excluding fresh produce, have

undertaken to comply with the principles of the Codex and submit

independent audits. “Last year, we initiated the Global Social Compli-

ance Program (GSCP) in collaboration with internationally operating

wholesale distributors,” says Bolliger, “to much success.”

With approximately 600 stores throughout the country, Migros sells almost 25% of Switzerland’s food, employs around 83,000 people and has annual sales of more than 12.3 BILLION

MILESTONES

The 40s1941 The M-Aktiengeseillschaft

is converted into regional

co-operatives

1944 Migros Club Schools

founded

1946 The Dutti-Park was

founded

1948 The fi rst self-service shop

opened in Switzerland

The 50s1951 First sale of non-food items

1952 First MM with restaurants are

founded in Zurich

1954 Gasoline and heating oil

company Migrol, established

1956 Language school (Eurocentre)

founded

1957 Migros Bank established

1958 Secura insurance company

established

The 20s1925 Migros founded with fi ve car sales

1926 First store opened in Zürich

The 30s1933 First Migros co-operative founded

in Ticino

1938 First issue of the Migros weekly

newspaper, Azione

Migros Ed P66,67,68,70,71.indd Sec1:70Migros Ed P66,67,68,70,71.indd Sec1:70 14/8/08 15:08:3514/8/08 15:08:35


For a start, all new supermarkets are energy-effi cient; the super-

market in Eschenbach, Switzerland, recently switched to 100 percent

LED lighting throughout the entire store – in the refrigerated compart-

ments, overhead and accenting the selection of products on offer –

through which it hopes to reduce energy use by 80 percent, including

lower air conditioning costs due to the low waste heat generation of

light emitting diodes. In addition, Migros has a new detergent, which

cleans at a 20-degree wash, thus saving energy and CO2; and is also

a key player in the use of climate-friendly fuels, fl ying employees CO2

neutral on business trips and successfully operating the largest take-

back system in the Swiss retail trade.

“Migros has always endeavoured to offer good and reasonably

priced products, but also to assume its social responsibility by manu-

facturing, processing and distributing such products without causing

harm to the environment,” says Bolliger. It is one reason why Migros

joined the Global Compact of the United Nations, a voluntary frame-

work for businesses that are committed to aligning their operations

and strategies with 10 universally accepted principles in the areas

of human rights, labour, the environment and anti-corruption. “Last

year, the independent energy rating fi rm Oekom Research scrutinised

the performance of the largest retail enterprises, and found that

Migros was the most sustainable retailer in the world. It is a title we

are extremely proud to hold.”

FutureAs Migros continues to grow, so too does Bolliger’s job. For the fi rst

time, he has developed a group strategy in order to provide a framework

for the future orientation of Migros’ strategic business units. “We are

geared to improving the quality of life for our customers and employees.

We are predicting stronger growth abroad, with the intention of strength-

ening the existing business units and the Migros Group,” he says. “And

for our group as a whole, we aim for profi table growth.” By adapting to

the changing needs of consumers, and by focusing on innovations that

bring added value, it seems Migros has every chance of succeeding in its

goals and overcoming the current challenges in the industry.

LabellingAs the expanding and diversifying population grows, so too do

their needs, wants and demands, particularly regarding safety issues.

So how does Migros plan on handling this product safety challenge?

Primarily through the company’s labelling, answers Bolliger. “We play

a leading role in the introduction and propagation of label products

and ensure that comprehensive background information on the prod-

ucts is obtained from the manufacturer or the supplier. Trustworthi-

ness is the key: we make ourselves trustworthy by checking, and

having others check, that we really deliver what we promise.”

He goes on to explain that Migros has their own engagement

labels, including a ecological and/or social value-added, and an ex-

panding range of sustainable products. At present, Bolliger is focused

on specifi cally developing the assortment of climate-friendly prod-

ucts and foodstuffs geared towards a balanced nutrition. “Labelling

is an issue but we are faced with complex – and not always consistent

– laws, and also with the task of informing consumers without confus-

ing them. There is a limited amount of space on a label, and everybody

should be able to read the information without having to carry a mag-

nifying glass and an encyclopaedia in their shopping bag,” he jokes.

Sustainability In addition to this are challenges specifi c to Switzerland in regard to

spatial planning and worldwide concerns regarding the protection of the

environment and sustainability issues. “Migros has always been very much

involved in respecting and protecting the environment,” explains Bolliger.

“We have a comprehensive environmental management team, which is

co-ordinated by the ecology and energy departments in the Federation

of Migros Co-operatives.” Bolliger has set the company binding goals in

order to increase energy effi ciency and reduce carbon dioxide emissions,

convinced that the key culprit in the fi rm’s environmental pollution is its

energy consumption. Bolliger claims that it will be possible to cut carbon

dioxide emissions by 16 percent by 2010, an ambitious goal; however, he

is confi dent that the company will be able to meet these goals, and has

taken numerous measures to ensure that they will be achieved.

The 80s and 90s1986 First leisure centre opened

1992 Green light for foreign branches on

the border

1993 First shopping centre opened on

the border

1993 Migros engaged in Austria

1997 Introduction of the customer loyalty

programme, M-Cumulus

1998 Introduction of online shopping

1998 Migros decides on a co-operation

with OBI, a DIY store

The 60s and 70s 1963 Gottlieb Duttweiler

Institute opened

1967 Introduction of

Migros data

1970 First MMM

20002000 Migros celebrates its 75th

anniversary

2001 Migros achieves a turnover of over

20 billion francs for the fi rst time

2002 Introduction of corporate

governance structures

2003 New umbrella label for products

with social and environmental

value introduced

2007 Migros own a 70 percent stake in

Denner Discount

Migros Ed P66,67,68,70,71.indd Sec1:71Migros Ed P66,67,68,70,71.indd Sec1:71 14/8/08 14:55:4114/8/08 14:55:41

BEATINGThe Food Fraud Task Force, an independent body set up to ad-

dress this issue, defi nes food fraud as deliberately placing on the

market, for fi nancial gain, foods that are falsely described or other-

wise intended to deceive the consumer. And while Reynolds believes

this description actually covers a multitude of sins, he sees cases of

food fraud falling into two broad groups. “The fi rst is selling food

not fi t for human consumption or recycling animal byproducts back

into the food chain,” he explains. “Recent UK examples include con-

demned, diseased poultry being bleached and diverted back into the

food chain and, more recently, a case in Northern Ireland where beef

and poultry of unknown origin were illegally repackaged and placed

on the market for human consumption. The second type of fraud is

deliberate misdescription, resulting in consumers not receiving what

they expected – such as farmed fi sh being sold as wild or non-organic

food sold as organic.”

In the past, a number of high profi le food frauds have centred on

the meat sector, which refl ects the substantial profi ts that can be made.

“Here in the UK, we’ve had several large-scale food frauds in recent

Ian Reynolds

THE FRAUDSTERS

Picture the scene. It is London in 1820. Bakers are mixing

dough with chalk and plaster to make loaves whiter and

heavier. Brewers are using strychnine to make beer taste

bitter. Confectioners are using poisonous lead and mer-

cury salts to make sweets brightly coloured and more

attractive to children. It’s a great time to be an enterprising food pro-

ducer with questionable scruples, but probably not such a pleasurable

period for the poor consumers subjected to hazardous substances on

a daily basis.

Fast-forward two centuries and things have, thankfully, changed

for the better. Standards have done much to improve the quality of

the food we eat, ensuring there are no nasty surprises hidden away

in the ingredients cupboard; and swift prosecution of transgressions

has led to increased confi dence in the safety (and legitimacy) of the

food chain. Organisations such as the Food Standards Agency in the

UK and the European Food Safety Authority have worked tirelessly in

this regard.

Nevertheless, food fraud does still exist – recent high-profi le

cases include vodka being diluted with industrial methylated spirits

and problems with the supply of rotten poultry to certain supermar-

kets – and stopping such illegal practices is critical to minimising public

health risks and ensuring consumers get what they are paying for.

Dr Ian Reynolds is Deputy Chair of the UK Food Standards Agency,

and takes the issue of food fraud very seriously. “Our authenticity

programme is one of the leaders in Europe in developing state-of-the-

art methods to detect food fraud and misdescription in a wide range

of foods, from DNA to biochemical markers,” he says. “We work hard

with local authorities to uncover cases where the consumer has been

misled, whether deliberately or unintentionally, and take swift action

to stop illegal activity.”

In the fi ght against food fraud, greater intelligence sharing amongst food agencies will be key to ensuring standards are met and rule-breakers brought to justice.


“Our authenticity programme is one of the leaders in Europe in developing state-of-the-art methods to detect food fraud and misdescription in a wide range of foods”

food fraud.indd Sec1:72food fraud.indd Sec1:72 14/8/08 13:47:3814/8/08 13:47:38


“We know some products are substituted or adulterated with

cheaper products,” says Reynolds. “At the Agency we take food

authenticity very seriously and so we’ve developed methods to

authenticate food to ensure what is on the label is in the packet.”

Using science, the FSA is able to:

• Verify the geographic origin of beef using isotopic methods

• Check if poultry sold as ‘fresh’ has been previously frozen,

using enzyme-based methods

• Detect the presence of meat in vegetarian products, using

chemical analyses

“In addition, we are helping food analysts invest in new

lab-on-a-chip technology,” continues Reynolds. “This technology is

fast, safe, cheap, and easy-to-use. And we train analysts on a range

of DNA methods we’ve developed specifi cally for this platform. They

can, for example, determine species of fi sh and exotic meats or

detect adulteration of Basmati rice with cheaper varieties.”

In 2006, the Food Standards Agency (FSA) established a national

food fraud database. This central intelligence system uses a

specialist intelligence management program that is used by many

other law enforcement agencies, including the Welsh Food Fraud

Co-ordination Unit. In addition to having powerful searching

capabilities, it is used to detect emerging patterns of fraudulent

activity. The database is an important resource for local

authorities that may be seeking additional information to assist

with their investigations into food fraud incidents.

Intelligence is received from a variety of sources, including

consumers, industry, government departments and other

enforcement bodies, but particularly from local authorities. It

is important that local authorities share all intelligence they

become aware of in relation to known or even suspected food

fraud incidents, including historical cases, with the agency. This

intelligence can then be used to populate the database along with

data from all other sources.

PREVENTING FRAUD

FOOD FRAUD DATABASE

The detection of food fraud is not easy, although it is sometimes

possible to identify products where fake packaging and labelling

have been used, particularly where the originals may have been

poorly counterfeited. The public should also be conscientious when

purchasing food and may be right to be suspicious if they are offered

a product that appears far too cheap to be true – the price may well

refl ect the quality and history of the food.

CONSUMER TIPSyears that have resulted in successful prosecutions,” continues Rey-

nolds. “One prosecution resulted in the ringleader of a major poultry

fraud beginning his six-year sentence last year. Another case involved

tonnes of condemned poultry meat, originally intended for pet food,

being diverted back into the human food chain as well as other illegal

meat products being targeted at UK ethnic communities. A past misde-

scription case, where a restaurant sold non-organic food instead of the

organic food stated on its menu, also resulted in prosecution.”

One of the major challenges in tackling such activity is that,

because of its illicit nature, food fraud can only be recorded once

detected – meaning it is not always easy to accurately determine the

true extent of the problem. To assist with these detection efforts, the

Food Standards Agency has embraced a number of key initiatives to

help sniff out the fraudsters. Among the dedicated resources are the

Illegal Meat Task Force, a UK/Ireland network of food investigators

who assist local enforcement authorities in detecting and investigat-

ing meat frauds; and the Food Fraud Database, which uses specialist

intelligence software to detect emerging patterns of fraudulent activ-

ity. Intelligence is based on enforcement offi cer reports of suspected

or known fraud.

In addition, the agency provides additional resources to assist

local enforcement authorities facing resource-intensive investiga-

tions into suspected food fraud. “Typically, we’ve funded covert

surveillance, the storage and destruction of food, and computer

forensics,” says Reynolds. “The Food Fraud Task Force also encour-

ages whistle-blowers to inform the authorities to known or suspected

incidents of food fraud. All food businesses are required to provide

relevant documentation to food enforcement offi cers upon request, to

ensure adequate traceability throughout the food chain, and missing

or incomplete documentation is another way in which food fraud can

be detected.”

The UK has certainly done much to clamp down on instances of

food fraud, and Reynolds is proud of the fact that individual cases – in

the UK at least – are currently few and far between. Nonetheless, he is

well aware of the need for constant vigilance. More important still is

the necessity to share information on a Europe-wide basis to ensure

standards are constantly met and enforcement consistently applied.

“Protecting product identity is vital, otherwise legitimate trade and

reputations of genuine producers are damaged,” he insists. “Member

states need to work closely together to deal with potential food frauds

and enforcement offi cers must work closely with legitimate traders

and enforcement bodies, such as the European Anti-Fraud Offi ce, and

use their intelligence effectively.”

In terms of challenges for the future, Reynolds sees a number of

key trends being important. “First, I sincerely believe we need to share

timely intelligence to deal with fraud both within the EU and imports

into the EU from third countries,” he says. “We also need to be ready

to deal with fraud emerging in new markets – such as misleading ad-

vertising of food on the internet. By educating consumers, traders and

enforcers we’ll reduce risks to public health. More awareness denies

opportunities for fraud, but we do need the infrastructure to do this

– a food fraud network could be part of this, to increase international

co-operation.”

food fraud.indd Sec2:73food fraud.indd Sec2:73 14/8/08 14:42:4914/8/08 14:42:49


Testing raw materials or fi nished products using near in-

frared (NIR) spectroscopy is a common procedure in the

chemical and pharmaceutical industry. The main focus is

the identifi cation and qualifi cation of, in most cases, pure

chemical substances or formulations with well-defi ned

matrices. Pharmaceutical and chemical companies rely on NIR tech-

nology because of its speed and the proven specifi city to not only

identify and qualify chemicals, but also because of important physi-

cal parameters.

Besides the speed, the possibility to perform non-invasive

analytics is a major advantage of the NIR technique founded on the

properties of NIR radiation, or to be more precise, on the physical

nature of the excited vibrational transitions. The wavelength region

between 10,000 and 4000 cm-1 is characterised by a weak degree of

absorption. Thus, a high ratio of the incident light is refl ected from the

solid surface after interaction with the sample and can be collected

and analysed in the so-called refl ectance mode. To analyse the result-

ing spectral information, various chemometric methods are used with

respect to identity control. The Cluster-ID method, a classifi cation

method based on principal component analysis (PCA), combines dif-

ferent advantages of other algorithms such as spectral comparison or

SIMCA. As a result, the operator of such an analytical tool will receive

clear and easy-to-interpret information:

‘Identity OK’ or ‘Identity not OK’. This

allows its use outside of an analytical

laboratory where qualifi ed analytical

personnel are not present (e.g. directly

in the warehouse to perform quality

control checks of raw materials or on

the production fl oor to verify the quality

of fi nished products before shipping).

Testing the quality of raw materials

or fi nished products is also an important

issue for the food industry. In contrast to

the chemical and pharmaceutical indus-

try, the majority of raw materials and

fi nished products in the food industry

are highly complex materials from plant

material or animals that show seasonal,

geographical and species variation.

Next to sensory and visual inspections,

the quality of a raw material or fi nished product in the food industry is

traditionally defi ned by a set of chemical or physical parameters, which

are quantifi ed using suitable analytical technology.

Companies specialising in industrial bread production have a high

demand for ready-to-use bread baking mixtures. The market for bread

mixtures at retail stores for use in consumer households is growing

continuously as well. The following case study will demonstrate that

quality verifi cation of this kind of mixture can be done not only with

a single measurement using NIR spectroscopy to acquire quantitative

results, but also to establish an easy-to-use, distinct identifi cation/

qualifi cation method using Cluster ID.

Bread mixtures are much more than just fl our, water and yeast.

They are very complex formulas containing various components in

different ratios such as wheat fl our, rye fl our, cereal fl akes, seeds,

whole grain, malt, salt, spices, yeast and additives to enhance the

baking result.

The development of these complex formulas requires intensive

know-how and time consuming tests in which the relevant quality pa-

rameters are evaluated and optimised. The identifi ed critical quality

parameters need to be monitored closely before shipment to ensure

a satisfying result at an industrial bakery or in the family home. In

the following study, the parameters protein, starch, fat and salt were

Using near infrared spectroscopy in the food industryDr Holger Keller, Product Manager NIR at Büchi Labortechnik AG, outlines the use of the Cluster ID method for distinct identifi cation of quality aspects in the food industry.

Bread mix 8

Bread mix 1

Bread mix 2

Bread mix 4

Bread mix 5

Bread mix 6

Bread mix7

Bread mix 3

FIGURE 1: SCORE PLOT OF EIGHT DIFFERENT BREAD MIXTURES

TECHNICAL INSIGHT

PC1

All quantitative results

PC2

Buchi.indd Sec1:74Buchi.indd Sec1:74 14/8/08 14:03:0514/8/08 14:03:05


analysed and calibrated with the use of NIR spectroscopy for a

total of eight different bread mixtures.

Different bread mixtures show large differences within the

critical parameters but within different batches of the same bread

mixture the parameters remain in a narrow band. Therefore it is

possible, in a quantitative way, to identify certain composition pat-

terns, which can be analysed with chemometric methods as well.

Figure 1 shows that classifi cation of the eight different bread

mixtures based on the data acquired from the reference analysis

methods is possible. Because the relevant quantitative informa-

tion can be calibrated based on the NIR spectral data and cor-

related with the classifi cation of the different bread mixtures, a

classifi cation model based on the spectral data can be derived

directly (Figure 2).

The results show that there is more than one way to deter-

mine the quality of different bread mixtures. The more tradi-

tional quantitative approach delivers a number of quantitative

results with a single NIR measurement. These results need to

be interpreted in order to link them to a quality related pattern.

Cluster analysis is an elegant way to merge a traditional quan-

titative approach with direct examination of spectral informa-

tion. This delivers a classifi cation of different bread mixtures

with a clear message, which leaves no room for interpretation.

The results are distinctive: identity conforms or identity does

not conform.

CASE STUDY

Near Infrared (NIR) Spectroscopy is a well known and established

method for the identifi cation and qualifi cation of raw materials in

the chemical and pharmaceutical industry.

Testing the quality of raw materials is an important issue for

food production, especially in the bakery industry for example. Wheat

fl our can be produced in several kinds of different qualities. This is

obtained by milling together different types of wheat and by using the

same mixture in different ratios. Each different quality is produced

for a specifi c purpose. Depending on the quality, the fl our will be

used for bread production, cakes, biscuits or other bakery products.

To ensure the quality of the fi nished products it is necessary to

monitor the characteristics of the fl our very closely. This is usually

done by determining a set of chemical and rheological parameters

such as moisture, protein, water absorption, stability, dough

development time, baking strength of dough or the ratio between

dough strength and extensibility, in a quantitative way.

Interpretation of the results is necessary in order to determine

whether all quantitative results are in the allowed tolerance range

for the expected fl our quality or not. The overall quality aspect

is therefore characterised as a combination of the different

quantitative chemical, alveographic and farinographic results.

This study was developed to evaluate the capability of NIR

technology to identify and qualify a certain fl our quality with the

use of PLS Analysis. For each quantitative parameter a number of

samples, ranging from about 150 to 500 samples, were collected.

The samples represent six different wheat fl our qualities and were

collected over a period of approximately 10 months.

The study was carried out by Barilla G. & R. Fratelli Spa

company R&D. The results show that with the use of a BUCHI

NIRFlex N-500 FT-NIR spectrometer it is possible to develop

quantitative PLS calibration models that allow the clear

identifi cation of different fl our qualities by a non-destructive

analysis, which avoids labour intensive, traditional, alveographic and

farinographic reference measurements.

Now the correct identity of every batch of fl our can be

immediately verifi ed against an established pattern of several

different quantitative parameters immediately after its arrival to the

bakery plant.

Bread mix 8

Bread mix 1

Bread mix 2

Bread mix 4

Bread mix 5

Bread mix 6

Bread mix7Bread mix 3

FIGURE 2: THE CLASSIFICATION OF DIFFERENT BREAD MIXTURES

Buchi.indd Sec1:75Buchi.indd Sec1:75 14/8/08 14:34:0414/8/08 14:34:04


Salmonella is one of the most stub-

born and regularly occurring prob-

lems in the food chain and has been

the focus of food safety for many

years. This contamination can cause intesti-

nal discomfort, fever and even death in weak

and elderly people. And each year millions of

people contract Salmonellosis with an eco-

nomic impact running into billions of Euros.

Many Salmonella reduction programmes exist,

but a workable solution has proved evasive for

various reasons, including insuffi cient disin-

fection to analytical inaccuracy.

One notable fl aw has been the inability

to trace the contamination accurately to its

origins. Salmonella contamination can occur

anywhere in the food chain; on farms and in

rearing units, in factories where agricultural

products are processed into feed ingredients,

or complete animal feed, or anywhere bacte-

ria have a chance to grow. In order to trace

contamination accurately, specialised skill

is required, so specialised laboratories are

often involved where the feedback of results

is very slow, or serotyping is left out of the

programme completely.

However, there are 2000 Salmonella

subtypes or serotypes. Different Salmonella

contaminations are often caused by different

serotypes. Classical serological methods re-

quire well trained and experienced staff and

full serotypes identifi cation can take up to two

weeks and longer. But routine serotype-iden-

tifi cation is important for two main reasons:

fi rst, recent EU and national requirements

demand more detailed serotype-identifi cation

when positive Salmonella contamination is

found. Second, routine serotype- identifi cation

enables each specifi c cause of Salmonella con-

tamination in the food chain to be pinpointed,

thus reducing Salmonella contamination by

taking specifi c appropriate sanitary measures

in the specifi c part of the production chain, like

broiler house, feed mill or hatchery.

Successful approachAs has been demonstrated in the Nether-

lands, excellent results have been achieved

with a serotyping approach, which is par-

ticularly signifi cant in fi ghting the problem

because it not only offers a speedy detection

method, it also enables an exact tab to be put

on the bacteria. More signifi cantly, it enables

the source of the problem to be traced back

to the hatchery, breeder fl ock, feed mill,

grow-out farm or processing plant where the

problem arose.

In addition to strict monitoring, cleaning

and disinfection regimes, the Dutch approach

includes preventative measures such as the

successful monitoring of breeder houses,

which owes much to the regular analysis

and rapid serotyping of Salmonella positive

samples. To avoid contamination of separate

lots from other breeder houses, a special

regime involving meticulous segregation has

been introduced. Similar strict monitoring

measures have been introduced in grow-out

houses and on farms, while processing plants

are subjected to strict segregation and clean-

ing regimes.

To support this approach DSM introduces

a new product, the PremiTest Salmonella,

to pinpoint the serotype in the food chain.

PremiTest Salmonella is a combined detec-

tion and identifi cation method for Salmonella.

PremiTest Salmonella is a rapid, robust and

easy to perform test and it recognises more

than 70 of the most important Salmonella se-

rotypes. It will support integrators to further

decrease the Salmonella contamination in

the chain.

Faster and reliable screeningA fast and effective antibiotic residue-

screening test for antimicrobial substances

in fresh meat, fi sh and eggs is also available

in the form of PremiTest. This is not only easy

to use and cost-effective, it offers meat, fi sh

and egg integrators a signifi cant improvement

for their on-site screening regimes. It can also

be used to test animal urine, giving farmers,

breeders and veterinarians a quick and inex-

pensive way to reliably screen livestock before

sending them to the abattoir, as well as to test

animal feed for anti-microbial substances

before being fed to livestock.

Global usage increasingSpearheaded by Europe, which has

pioneered the validation and usage of

PremiTest, many countries throughout the

world are showing their eagerness to embrace

the new tests. Salmonella serotyping is

now regarded as the primary solution for

salmonella contamination throughout the

food chain.

A light at the end of the tunnelDespite regulations across Europe being tightened in order to provide a greater degree of safety assurance, problems that further erode consumer confi dence still arise with predictable regularity. Now new solutions are becoming available and gaining acceptance on a global scale. By Françoise de Goeijen.

Françoise de Goeijen graduated from the

Agriculture University of Wageningen as

an Agriculture Engineer in 1985. In 2001,

she joined DSM fi rst being responsible for

Meat Ingredients and later moving to DSM

Nutritional Products as Global Business

Development Manager Food Safety.

FOOD SAFETY FOCUS

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DSMpremiTest_AD.indd 1DSMpremiTest_AD.indd 1 29/7/08 09:47:4829/7/08 09:47:48

EXECUTIVE INTERVIEW


FS. Safety scares are driving demand for

better food testing and traceability tech-

nologies. How is your company involved in

this aspect of the food chain?

PY. From a food producer’s point of view,

food safety is about managing the risk to

consumers whilst at the same time protect-

ing brand in a timely, cost-effective manner.

At Waters, we are working with customers

worldwide to ensure that our technologi-

cal innovations deliver both scientifi c and

business advantages. For example, by utilis-

ing the high throughput of ACQUITY UPLC

combined with purposefully designed, com-

plementary detection systems, customers

are realising improvements in effi ciency by

covering a broader range of contaminants in

each measurement than has been previously

possible. Additionally, they are increasing

throughput in an environmentally friendly

way through simultaneously reducing sol-

vent usage and protecting their business

by generating unambiguous results the fi rst

time. Laboratories should not merely be

tasked with generating results, but need to

Food testing is paramount if you want to avoid a potentially devastating safety scare, says Dr Paul Young, Senior Manager for Business Development at Waters Corporation.

be considered as a key source of business

information. Waters informatics products,

like the NuGenesis Scientifi c Data Manage-

ment System (SDMS), are designed to allow

compliance-ready data tracking and infor-

mation sharing throughout an organisation

across multiple geographies.

FS. In your opinion, what are the key factors

to be taken into consideration when consider-

ing a food testing solution? And what are the

key features companies should look out for?

PY. The single most important consideration

must be one of effi cacy. Results must be un-

ambiguous, protecting both the consumers

and the company. Solutions therefore need

to be both robust and comprehensive. With

food production, spoilage is an important

consideration, so turnaround times must

also be minimised to avoid costly waste.

Companies should look for versatility in their

solutions, with the aim to increase the scope

of the analytical methods. In short, robust,

rapid, unambiguous methods can generate

signifi cant return on investment savings.

SAFE AND SOUND

waters interview.indd Sec1:78waters interview.indd Sec1:78 14/8/08 14:19:5514/8/08 14:19:55

79www.foodsolutions.eu.com 79www.foodsolutions.eu.com

FS. What challenges do food producers face

in addressing the issue of traceability – both

from an operational and a compliance per-

spective?

PY. Effective traceability is essential for the

management of hazards when they are iden-

tifi ed. From an operational perspective, com-

panies need to be able to identify ingredients

and production lots to as minute levels of

detail as is practical, in order to reduce or

even prevent signifi cant waste when an issue

is detected. Under European law, traceability

through all stages of the production is a reg-

ulatory requirement and it is expected that

such a requirement is likely to be enacted in

US food law in the future. International trade

has been signifi cantly disrupted in the past

as a result of confusion involving laboratory

analyses and export certifi cates. Therefore,

in addition to addressing their own business

needs, food producers are obliged to dem-

onstrate due diligence by putting in place

robust traceability procedures that will stand

up to regulatory scrutiny.

FS. The greatest threat to public safety in the

event of a food recall is that traceability in-

formation is not timely. How can laboratory

information management systems help drive

greater traceability into the food production

process?

PY. Laboratory information management

systems play a key role in managing risks,

since accurate results are only meaning-

ful if they can be attributed to the correct

sample. At Waters, we are extending the

access to laboratory information beyond the

lab into all areas of the business through the

development of a suite of complementary

informatics products, designed to increase

productivity by collating and making widely

available laboratory information from di-

verse data sources.

FS. What will be the key trends in traceabil-

ity and testing over the next few years? Are

there any developments you are particularly

excited/concerned by?

PY. In previous times it was uncommon to

encounter techniques capable of detecting

more than a handful of analytes simultane-

ously. Recently, however, Waters scientists

described a UPLC-MSMS method, developed

on the Waters TQD, which is capable of de-

tecting more than 400 pesticide residues in

an eight-minute chromatographic separation.

Whilst MSMS detection is likely to remain the

gold standard for quantitative analysis, many

scientists are starting to employ the versatil-

Prior to joining Waters in 2007, Dr Young

was employed by the Department of

Agriculture and Rural Development

in Northern Ireland for more than 25

years, involved in development of mass

spectrometric methods for food safety

analysis. Additionally, he has frequently

delivered food safety training on behalf

of international bodies.

ity and accurate mass capabilities of Time of

Flight MS detection to develop detection sys-

tems of almost limitless scope. The challenge

this creates is one of management of the

vast quantities of data generated by these

systems. At Waters, we have and continue to

address this through targeted development

of our informatics suite of software.

I expect that we will continue to see ad-

vances in throughput, in the applicability of

methods and in the ease of use of the instru-

ments themselves.

“Accurate results are only meaningful if they

can be attributed to the correct sample”

waters interview.indd Sec2:79waters interview.indd Sec2:79 14/8/08 13:41:4214/8/08 13:41:42


ClimaStats is a web-based cold chain

management solution for tempera-

ture and humidity logging, using

devices capable of recording secure

electronic data for the entire duration of a

process or to accompany temperature sen-

sitive products throughout their cold chain

lifecycle. ClimaStats has been designed to

offer companies a user-friendly system to

control and manage product quality assur-

ance documents, tracking/tracing informa-

tion and reporting records.

The solution takes advantage of indus-

try-leading technology in temperature and

humidity logging devices by supporting

Maxim Integrated Products’ widely acclaimed

iButton product line. These data-logging

products include the industry’s smallest,

smartest and most robust packages to suit

applications between -40°C to +125°C. The

modular design allows the system to cater for

various needs, no matter how big or small the

cold chain management requirements, and is

offered in fi ve different formats.

ClimaStats Micro Device (CSMD) is an

entry-level option providing support to

download, reconfi gure and produce reports

and offers users full control over our range

of temperature and/or humidity data log-

gers. The CSMD solution is suitable for

single users who require simple confi guring

and report data, ideally suited for analytical

and educational applications. The user can

access an executive summary of the mission

details; view the data logger readings and

view a comprehensive exception report of

alarm conditions, as well as a customisable

graphing utility. Reports can be printed or

saved as PDF, CSV or exported to a word

processor or spreadsheet.

ClimaStats Elite (CSE) inherits all the

features of CSMD but adds a powerful data

management module for the user to manage

higher volume logs and data loggers. The data

management module in CSE allows users to

retain data in its original form and view when

required. A user password is required at login

and data is stored in a secure database.

ClimaStats Micro View (CSMV) is more of

a data management tool used in conjunction

with CSE and CSP deployed editions, allowing

the user to view the logger data in both the

remote web service database as well as the

local machine database. The CSMV solution is

targeted more at management level users who

wish to only view the data logger readings and

exceptions and to view or print reports.

ClimaStats Professional (CSP) inherits

all of the features of the Elite package to-

gether with the Security Manager module

used to create user groups and assign

specifi c functionality and devices to these

users. It is suitable for international trade

web service connectivity and corporate

groups with separate operating divisions.

During transportation and storage it is

imperative pharmaceutical, export/import

fruit and food companies manage and moni-

tor temperature sensitive valuable products.

The CSP package allows for important data

to be retrieved, managed and shared with

business partners in a proactive nature.

ClimaStats Mobile (CSM) can run on a

handheld PDA and a smart phone running

Windows Mobile. CSM supports auto start

and stop modes,and allows the user to view

readings and send data direct to ClimaStats

web service via GPRS or WiFi if supported by

the handheld. Another handy function is the

ability to pair handheld devices with a port-

able Bluetooth printer to print summary mis-

sion statistics and/or graphs, immediately

to receiving bays to accept or reject paper

copy of log.

Cold chain managementMalcolm Mackay looks at cutting-edge solutions for temperature and humidity logging.

iButton is a registered trademark of Maxim Integrated Products. Windows Mobile is a registered trademark of Microsoft Corp. Bluetooth is a registered trademark of Bluetooth Sig, Inc.

Malcolm Mackay has 17 years’

extensive experience in system

design, manufacture, marketing

and sales of Electronic Data

Collection Products. He joined

Fairbridge Technologies in 2004

as a Product Specialist for Maxim

Integrated Products.

Temperature sensor

IBUTTON DATA LOGGER PRODUCTS SELECTION GUIDE

PART DESCRIPTION

DS 1920-F5 Enable Enable User To Collect Current Temperature Upon Contact With A Reader. Digital Therometer, ±0.5 °C Accurancy (-55°C To 100°C).

PART

Temperature data loggers

Temperature/humidity data logger

OPERATING RANGE MAX ACCURANCY DATALOG SIZE

DS1921G-F5

DS1921H-F5

DS19121Z-F5

DS1922L-F5

DS1922T-F5

-40°C to +85°C

+15°C to +46°C

-5°C to 26°C

-40°C to +85°C

0°C to +125°C

± 1°C (-30°C to 70°C) ± 1°C

±1°C

±0.5°C (-10°C to +65°C)

± 0.5°C (+20°C to +100°C)

2K points

2K points

2K points

4k/8k points

4k/8k points

DS1923L-F5 -20°C to +85°C

0%RH to 100% RH

±0.5 °C (-10°C to+65°C)

5%RH

8k points (temp)

4k points (temp/RH)

INDUSTRY INSIGHT

Maxim.indd Sec1:80Maxim.indd Sec1:80 14/8/08 14:40:3314/8/08 14:40:33

MaximIntegrated_AD.indd 1MaximIntegrated_AD.indd 1 29/7/08 09:51:4429/7/08 09:51:44

Jørgen Schlundt, Director of the Department of Food Safety, Zoonoses and Foodborne Diseases for the World Health Organisation, outlines the current food safety burden and suggests what can be done to open up communications.

The estimated disease burden caused by unsafe food is

signifi cant in all countries around the world. Most con-

sumers have heard of Bovine Spongiform Encephalopa-

thy (BSE) in the United Kingdom, Dioxin in Belgium or

the spread of Highly Pathogenic Avian Infl uenza (HPAI)

from Asia. Nevertheless, food safety authorities in many

countries often like to point out that these events – highly publicized

as they might be – do not really refl ect the food safety reality, and have

in effect caused very little disease burden even at the global level.

The same authorities often use similar statements when national out-

breaks caused by Salmonella, Escherichia coli O 157 or Listeria occur

because of contaminated eggs, produce or ready-to-eat foods.

These authorities are right – all of the issues mentioned above

have caused a relatively low disease burden when compared to the

general dramatic disease burden that affects consumers in all coun-

tries continuously from unsafe food. The best estimate we have of

a more comprehensive foodborne disease burden comes from the

US: in 1999 a group lead by Dr Mead from the CDC published a major

study estimating that one-third of the US population contracts a

case of foodborne illness every year – and this estimate was only

related to disease caused by micro-organisms (Mead et al., 1999).

The facts related to the true disease burden are seldom pub-

lished by authorities. We therefore appear to have a situation in

many countries where the authorities correctly point out to the

public, that these outbreaks are few and often result in only limited

The futureof food safetycommunication

FOOD SAFETY FOCUS


JORGEN SCHLUNDT.indd 82JORGEN SCHLUNDT.indd 82 14/8/08 13:50:4214/8/08 13:50:42


portant foodborne diseases in a population of

approximately 250 million in the range of $6.6

billion to $37.1 billion (Buzby and Roberts,

1996). Estimates of the economic consequenc-

es of food contamination events or foodborne

disease outbreaks through altered conditions

affecting national food exports are not forth-

coming, and only a few examples are typically

presented, mostly without a clear description

of the methodology used for the estimation.

However, in several major single incidents the

total health bill has been measured in hun-

dreds of millions of US dollars.

When there are more accurate estimations of the real disease

burden related to unsafe food, which will hopefully be in the near future,

there will most likely also be calls for political interventions of a differ-

ent nature as a response. But it will not be only the better estimations

that will defi ne a new situation. We will most likely also experience an

increase in the reported number of foodborne disease outbreaks.

disease burden. Many of these same authori-

ties, however, do not always seem to make

serious efforts to estimate and/or publicise

the true burden of foodborne disease. This

true burden stems from the cases happening

every day all over the world, involves almost

all types of food and results not only in diar-

rhoea, but also other serious affections such

as kidney and liver failure, brain and neural

disorders, long-term complications, such as

reactive arthritis, and cancer as well as death

from any of these other conditions. Many of

these cases are occurring in situations where

they are not or cannot be linked to other single cases and are re-

ferred to as sporadic cases, even though together they constitute

the majority of foodborne disease cases.

Sporadic casesA major source of international variability in reporting of food-

borne diseases relates to the number of sporadic cases. Some

countries report the total number of cases of a foodborne disease,

including sporadic cases, while others mainly collect information on

the number of outbreaks and the number of cases involved in the out-

breaks. For most foodborne diseases the major part of cases are spo-

radic, for some diseases (e.g. disease caused by Campylobacter spp.)

the disease incidence relates almost exclusively to sporadic cases.

Deeply concerned by a potentially growing foodborne disease

burden, in May 2000, at the 53rd World Health Assembly, the gov-

erning body of the WHO, adopted a resolution calling upon the WHO

and its member states to recognise food safety as an essential public

health function. The resolution also called for the development of sys-

tems to enable a reduction of the burden of foodborne disease. Still

concerned that our estimations of this burden is very poor, the WHO

has, from 2006, initiated a broad estimation of the global burden of

foodborne disease, a major, long-term initiative supported by many

international experts. Such estimations will enable not only a more

realistic communication of the problems, but also a prioritisation of

problems, as well as a science-based evaluation of the effect of dif-

ferent types of intervention to lower the foodborne disease burden.

Therefore, these estimates will enable effi cient action to lower the

burden and thereby contribute signifi cantly to the achievement of the

Millennium Development Goals, especially in relation to child health.

Economic burdenOf course foodborne diseases not only significantly affect

people’s health and well-being, but they also have economic

consequences for individuals, families, communities, businesses

and countries. These diseases impose a substantial burden on

healthcare systems and markedly reduce economic productivity.

The loss of income due to foodborne disease perpetuates the cycle

of poverty in poor settings. Estimating direct as well as indirect

costs of foodborne disease is difficult. An estimate in the US from

1996 placed the medical costs and productivity losses of seven im-

A major problem in the estimation of disease burden relates to

the burden of disease caused by chemical substances in food.

In many cases it is signifi cantly more diffi cult to link foodborne

disease to a specifi c chemical hazard because it is diffi cult to detect

the chemical in the patient, often we will only detect the effect. Two

examples of relevant chemical substances related to food consumption

are afl atoxins and acrylamide.

Afl atoxins are toxic substances produced by certain species of

fungi, from the Aspergillus family. One of the toxins causes a very

signifi cant number of human cancers globally every year, but acute

exposure can also result in disease, such outbreaks have been

registered in East Africa over recent years. Afl atoxin contamination

of food is often related to poor storage conditions. The greatest risk

for health exists in developing countries and food insuffi ciency can

compound the problems. The signifi cant associated health effects

pervade the developing world despite the fact that these effects

could be mitigated or prevented with the current state of agricultural

knowledge and public health practice.

Acrylamide is a chemical that is found in certain foods that

have been cooked and processed at high temperatures – above 120

degrees Celsius. Such foods include potato chips, french fries, bread,

coffee etc. In 2005, JECFA (a Joint FAO/WHO Expert Committee

on Food Additives and contaminants) suggested that the level of

acrylamide exposure in ordinary diets may indicate a human health

concern, since the compound is estimated to be genotoxic and

carcinogenic. JECFA indicated that the Margin of Exposure (margin

between levels consumed through food and levels causing disease in

animals) is one of the lowest known for potential carcinogens in food.

Therefore, appropriate efforts to reduce acrylamide concentrations in

foodstuffs are essential.

CHEMICAL SUBSTANCES

1/3of the US

population contracts a case of foodborne illness

every year



5

33

1

5

2

4

FIVE KEYS TO SAFER FOODCommunication

Outbreaks such as these are most likely not new. They have been

happening regularly, but were never registered as outbreaks, only as

single, sporadic cases. This is most likely, but of course we will only

know for sure when we are able to reliably assess the true disease

burden. However, the pertinent point is that we will most likely expe-

rience more documented outbreaks – a certain fraction of what was

earlier called sporadic cases will be realised as part of more wide-

spread outbreaks in the future.

But, maybe even more importantly: are we ready to communi-

cate this new situation to consumers at large? Judging from previ-

ous risk communication experience, we are often lacking in food

safety risk communication. Going back 10-20 years (before BSE)

the usual food safety authority response would be an ‘authorita-

tive’ response, something you would have to believe in simply

because you heard it from the authority and they were clearly the

ones to know best. Now, one of the problems with this approach

is that whenever something goes wrong, the authority will loose

credibility if it is not seen to be able to explain to people what really

happened – if it continues to maintain that all is well, when obvi-

ously it is not, for example. Therefore, as a result of several com-

munication disasters, the new focus in food safety communication

is to continuously work with the public to ‘restore the publics

trust’. In many cases the message from expert communicators has

been: make sure you maintain the trust, be open and transparent

and report immediately when something goes wrong.

“It is signifi cantly more diffi cult to link foodborne disease to a specifi c chemical hazard because it is diffi cult to detect the chemical in the patient, often we will only

detect the effect”

Jørgen Schlundt

Over the last couple of years we have seen a number of major

outbreaks of foodborne disease caused by Salmonella and E. coli

(especially O157) in different food vehicles. Some of the major re-

ported outbreaks have been in the US. Many, will remember the

large outbreak related to spinach a couple of years ago, and just

now the US are reporting an outbreak that might be related to other

vegetable foods. While the occurrence of these outbreaks might

signal a change caused by changing food production systems, the

more likely explanation to why, is that we now know how to detect

these outbreaks in new and better ways by linking bacterial isolates

and thereby linking human cases and their food sources together.

Genetic fingerprinting (especially Pulsed Field Gel Electrophoresis)

has been known for some time, but the systems to consistently use

this technique to scan the outbreak landscape is relatively new. In

the US the Pulse-Net network has been instrumental in defining

some of these recent outbreaks.

Foodborne illness is almost 100 percent preventable. The fi ve

keys to safer food at home are:

1. USE SAFE WATER AND RAW MATERIALS

Use safe water or treat it to make it safe; select fresh and

wholesome foods; choose foods processed for safety; wash

fruit and vegetables.

2. KEEP CLEAN

Wash hands before and during food preparation; clean all

surfaces and equipment used for food preparation; protect

kitchen areas from insects and rodents.

3. COOK FOOD THOROUGHLY

Cook food thoroughly, especially meat, poultry, eggs and

seafood; bring foods such as soup and stews to boiling point

to make sure they reach 70 degrees; for poultry and meat,

make sure that juices are clear not pink.

4. KEEP FOOD AT SAFE TEMPERATURES

Do not leave cooked food at room temperature for more

than two hours; refrigerate all cooked and perishable food

below five degrees; keep cooked food piping hot until

served; do not thaw frozen food at room temperature.

5. SEPARATE RAW AND COOKED

Separate raw meat, poultry and seafood from other

foods; use separate equipment and utensils, such as

knives and cutting boards for handling raw foods; store

food in containers to avoid contact between raw and

prepared foods.



Food safety is an important prerequisite for everyone’s health and

wellbeing. Therefore, the WHO focuses on food safety as part of a

broader human health agenda. In the realm of food safety the WHO

focuses on four major areas:

• providing the best, internationally agreed scientific advice

• developing international standards and guidelines based on the

best science

• supporting countries in building technical capacity to deal with

food safety efficiently

• formulating and advocating information to consumers in

collaboration with multiple countries

THE WHO

While openness, transparency and maintaining trust are clearly very

important components of any communication strategy, I would suggest

that this will no longer be enough in the future. When people see a clearer

picture of the real disease burden, openness and transparency will no

longer do the job. People, including politicians, will want to know what

we are doing to tackle the problems, how will we lower the risk and when?

Luckily, food safety authorities all over the world have already started

work in this area some time ago. So, what can be done?

There are several major issues at the core of improving food

safety and food safety systems in most parts of the world, thereby de-

creasing the foodborne disease risk. The most important are that the

prevention of problems have to integrate the full food production chain:

From Farm to Fork, or from Boat to Throat, for example, recognising that

the critical point for effi cient prevention might be at the farm for some

problems or at the retail level for others. Most present food safety sys-

tems are not built according to this important principle. Such incoherence

of the systems have led to inconsistency and in some cases ineffi ciency

of food safety systems. While prevention of foodborne disease of course

has to be based on good general hygienic practices, it is important to

focus our efforts towards the real risks in the population. Any system to

prevent effi ciently foodborne disease problems should be based upon a

solid evidence base. Therefore the data-gathering efforts related to food

contamination and foodborne disease need to be co-ordinated. Likewise

monitoring, surveillance and control efforts should be geared towards

common goals. This co-ordination is missing in many food safety systems

presently, leading to a very weak evidence base, potentially leading to

un-informed decisions and poor political support.

An important prerequisite for efficiency in most areas of work

is the setting of realistic targets for risk reduction and the monitor-

ing of success/failure. In the past food safety efforts have, in most

cases, not been linked directly to foodborne disease risk. Compli-

ance with existing regulation has often been the only measure of

success. The lack of clearly communicated targets for disease re-

duction is still a major draw-back of existing food safety systems,

although some countries are now initiating major risk-based,

target driven efforts to improve food safety, e.g. national plans to

lower the prevalence of Salmonella in food or maybe regional plans

to lower the level of acrylamide in certain foods.

Most food safety authorities acknowledge that ensuring food

safety must be tackled both at national and international level. At

the international level, the WHO in co-operation with the FAO, has

recently developed the International Food Safety Authorities Net-

work (INFOSAN) to promote the exchange of food safety informa-

tion, including information about emergencies. This development

stems from serious concern expressed by the World Health As-

sembly in May 2002, about health emergencies posed by natural,

accidental and intentional contamination of food. Therefore, the

development should also be seen in light of the revised Interna-

tional Health Regulations of WHO, regulations that oblige every

member country to provide information about public health events

of international concern to WHO without delay.

INFOSAN now has more than 150 participating countries and more information about this network can be found at: http://www.who.int/foodsafety/fs_management/infosan_archives/en/index.html

For more information Jørgon Schlundt can be reached at:World Health Organization, 20 Avenue Appia, CH-1211 Geneva 27, Switzerland Phone: +41 22 791 34 45 Email: [email protected]



F arm-raised poultry and livestock regu-

larly receive drugs, both licensed and

illegal, to protect them from disease

and spur their growth. Through ignorance,

carelessness or deceit on the part of grow-

ers, poultry and livestock prepared for

export often contains banned substances

or legal drugs at concentrations that exceed

maximum allowable European Union levels.

The Chemical Surveillance Department (Vet-

erninary Sciences Division) of the Agri-Food

and Biosciences Institute (AFBI), a UK-based

organisation, tests food of animal origin for

residues of both banned substances and li-

censed veterinary drugs. The department is

staffed by approximately 60 scientists ana-

lysing around 35,000 samples annually.

EU legislation dictates the identifi cation

criteria for confi rming the presence of a vet-

erinary drug residue, including the number of

transition ions that must be monitored along

with tolerances for acceptable ion ratios. The

lab presently uses a mix of traditional HPLC

instruments confi gured with a variety of

Waters mass spectrometers.

Challenges As a confi rmatory laboratory, speed, sen-

sitivity and accuracy are critically important to

the client. The average run time for an HPLC/

MS confi rmatory method is about 25 minutes.

Despite the relatively small number of samples

it tests in each batch, the lab must analyse up

to 20 standards and quality assurance (QA)

samples to confi rm the presence or absence

of a certain drug. In total, it can take between

seven and nine hours to obtain one analytical

result. Performing all the requisite QA tests

consumes valuable instrument time and

makes scheduling diffi cult and ineffi cient.

The lab also performs surveillance test-

ing. When the lab suspects that a farmer is

using veterinary drugs improperly, it has

the authority to detain a shipment of mar-

ketable product until the tests have been

completed. For these samples, results must

be delivered within fi ve days. If a test takes

more than fi ve days, and the results come

back negative – and the carcass spoils – the

grower can sue the laboratory for economic

damages. If the lab knows it won’t meet the

deadline, the only alternative would be but

to release the shipment and allow potential

health risks into the food supply. At times

the backlog on an instrument can exceed 10

days, from which, the lab manager admits,

it can be very diffi cult to recover. Nothing is

as infuriating as to be sitting on a bunch of

samples coming up to their deadline, and

knowing that you’re not going to be able to

get them analysed in time.

The solutionIn 2005, the lab acquired a Waters AC-

QUITY UltraPerformance LC (UPLC) system

that was installed on the front end of a

Waters Quattro Premier XE tandem quadru-

pole mass spectrometer. The lab manager

said it took him about three hours to transfer

the 24-minute nitrofuran HPLC separation

to a four-and-a-half minute UPLC separation

– one that he says gives him “much better

resolution”. The speed of the ACQUITY UPLC

System, combined with the Quattro Premier

XE’s exceptionally fast scanning and rapid

switching between ionisation modes, allows

the lab to complete runs in less time – and to

expand the scope of its multi-residue testing

by being able to detect a much larger number

of drugs per analytical run.

Business benefi t The laboratory took a 25-minute LC/

MS run down to four to fi ve minutes, a fi ve-

fold improvement in overall run time. The

lab manager can now schedule two or three

batches of samples in an eight-hour period –

tripling the lab’s output. Probably the largest

benefi t is in methods development. In devel-

oping any HPLC method, a typical reversed-

phase HPLC gradient method tends to take

anywhere from 25 to 30 minutes.

The lab manager says: “If UPLC runs are

four to fi ve minutes, essentially you don’t

have time for a cup of tea before you know

whether your run worked or not and you are

ready to do your next injection. At least with

UPLC, you know very quickly. What we’ve

found is that methods development is much

more rapid with UPLC than with traditional

HPLC.” UPLC also scores very high when it

comes to retention time repeatability. In an

overlay of 16 injections over an eight-hour

period, this lab manager has seen “absolute-

ly no drift in retention time to speak of”.

The ultra performance food safety system How a food safety lab has increased the speed of LC/MS analysis by fi ve times – tripling overall output.

INDUSTRY INSIGHT

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Agriculture for the21st centuryMarianne Fischer Boel, EU Commissioner for Agriculture and Rural Development, outlines the agricultural policy challenges facing Europe’s food producers.

A proverb familiar in many languages tells us to ‘look before

you leap’. In the years leading up to 2004, many were

taking a hard look at the possible agriculture-related dif-

fi culties of enlargement and wondering whether we could

all really make that leap. They were wondering about the

system of direct payments – about fi tting into it, about administering

it and about its cost. They were wondering about the challenges of

meeting European food safety standards. They were wondering about

the possible effects of enlargement on the European Union’s internal

market, and on national markets. And they were wondering about the

implications of differences in farm sector structure.

Yes, there was a lot to wonder about. But we made the political de-

cision that accession was going to happen, we all took the leap – and

we made it. In fact, for those who were predicting disaster, the whole

business of accession in 2004 was something of an anti-climax.

Certainly, in terms of agriculture, the process of integrating a large

number of new entrants into the European Union – and from the other

side, the process of joining the Union – has not happened all by itself. A

huge amount of political and administrative work has been necessary on

all sides, for which credit is due. Restructuring has been moving forwards

quickly – and this process has sometimes felt uncomfortable.

And of course, before 2004 and since then, there have been dif-

ferences of opinion on elements of policy. Good examples include the

phasing-in of direct payments, and the size of production quotas.

I believe that it was the right decision to phase in direct payments

on the one hand, but on the other hand to make more money available

through rural development to restructure the farm sectors in the countries

that joined the Union in 2004. This was the most logical way of targeting

money from the European budget at restructuring. With regard to quotas,

fi xing these was always going to be diffi cult, but the issue should become

less and less relevant in the years ahead. I'll come back to this later.

But let’s look at what has actually been achieved since 2004 in the

agri-food sector. Fundamentally, the entrants of 2004 are basically ‘in

the system’. Payments are being made, standards are being respected,

the CAP budget has not exploded and the internal market is working

smoothly. These are huge achievements.

At the level of the farmer, there has been very good news. In the EU12,

agricultural income has risen by around 40 percent since 2003 thanks to

direct payments, restructuring, higher prices and access to a larger market.

That’s 36 percentage points more than in the EU15. And agricultural income

is expected to grow further. We forecast that between 2006 and 2014, real

incomes will grow by another 40 percent in the entrant countries.

FISCHER BOEL.indd 88FISCHER BOEL.indd 88 14/8/08 13:44:3314/8/08 13:44:33


At this juncture, it is crucial to not lose direction. Many are con-

fused, both about the origins of the food price increases and in partic-

ular about the policy response. We have to keep the compass steady

and build on the reforms already undertaken. The principles of the

2003 reform, the one-year abolition of set-aside, the steady increase

in milk quotas and the lowering to zero of cereal import duties – all

these steps are part of the answer.

Therefore, the next stop in facing up to the challenge is the CAP

Health Check. I fi rmly believe that, fundamentally, all member states of

the European Union are in the same boat with regard to the Health Check.

We need the same things. All our farmers need a system of market tools

that does not hold them back from responding energetically to demand,

but which gives them a safety net for times of real crisis. All our farmers

need a Single Payment Scheme (or, for the time being, a Single Area Pay-

ment Scheme), which works as simply as possible. And all our farmers

need support to face developing challenges such as the need to fi ght

climate change, manage water better and make the most of bioenergy.

For instance, it must surely be good news to many that we’re map-

ping out a route to the end of the milk quota system. For many new en-

trants to the Union, milk quotas have felt like a very heavy burden to

carry. And certainly, the milk quota system has no place in the future

– a future of greater market-orientation and probably of fi rm demand.

Long gone are the days of desperately trying to control over-supply.

The key task is to wind up the system in an orderly way. On the one

hand, we must allow our dairy producers to respond now to the global

boom in demand – before others get a headstart. On the other hand, we

must not cut the legs from under our healthy market. This means that

any increases to quotas before 2015 must be well judged.

Furthermore, agricultural trade has

clearly benefi ted. Between 2004 and 2007,

agricultural exports from the EU10 to other

member states grew by 81 percent. Exports

to third countries grew by 99 percent. That

proves two things. First, the extra room for

expansion provided by membership of a large

internal market was well exploited. Second,

the adjustment of both farms and the food

industry to high European standards did not

take a toll on export performance – on the

contrary, it opened the doors to new markets.

This is confi rmed by the fact that the gross

value added of the food industry has been

rising in many new member states. And as we

all know, diversifying products and emphasis-

ing quality and origin are the main ways of moving up the value chain. I

therefore also think it’s signifi cant that groups in new member states have

shown plenty of interest in geographical indications. There are currently

18 registered Protected Designations of Origin or Protected Geographical

Indications in the new member states, and 68 applications pending from

these countries. I am pleased to see that the European Union’s quality

policy is giving producers in these countries a chance to reassert the dis-

tinctive identities of their products.

All of this has been happening over the last four years – or of

course, over the last year for Bulgaria and Romania. But now we all

have to move forwards together, as the Common Agricultural Policy

(CAP) continues to develop to keep pace with the needs of the Euro-

pean Union and the wider world.

Producing more to meet the growing demand for food around the

globe is one need – and these days perhaps it’s the one that is uppermost

in our minds. Ensuring food security on our continent is another – which

in my view is best achieved, not only by producing more, but also by trad-

ing more. Finally, agriculture is also at the centre of the debate when it

comes to climate change and sustainable development. I fi rmly believe

that European agriculture and our Common Agricultural Policy are part of

the solution, not part of the problem.

Commissioner Fischer Boel’s vision for 21st century agriculture includes:

PRODUCTIVE AGRICULTURE

“First, I want to see a system that feeds us, clothes us and gives

us energy”

RESPONSIBLE AGRICULTURE

“I also want to see agriculture that plays its part in taking care of the

natural world”

RELEVANT AGRICULTURE

“Finally, I want to see an agriculture embedded in living, developing

rural economies and societies”

AGRICULTURE FOR TOMORROW

“In the EU12, agricultural income has risen by around 40 percent

since 2003”

Marianne Fischer Boel


Delaval_AD.indd 1Delaval_AD.indd 1 29/7/08 09:47:2429/7/08 09:47:24


With regard to decoupled payments, we must stick to the principle

that the Single Area Payment Scheme is a transitional system. It was

never designed to be anything else. And according to Commission stud-

ies, it channels more of the value of direct payments into land prices

than any other system for making decoupled payments. Nevertheless,

I’m open to further extending the period during which the Single Area

Payment Scheme may be applied.

I also want to give member states using the Single Payment

Scheme the opportunity to fl atten out the differences between direct

payments to individual farmers on their territory. But such a step would

be optional, and it certainly would not mean that a fl at rate across the

European Union would be around the corner.

I know there are concerns over the Commission’s original ideas

about reducing very high direct payments. These ideas are a response

to very strong signals from the public. Nevertheless, I have no intention

of imposing what could be seen as a penalty on large farms – of which

there are many in parts of Central and Eastern Europe.

I’m sure that a compromise solution will be in reach within the

Health Check. This will probably involve somewhat higher rates of

modulation for larger farms, which would in this way contribute a little

more than smaller entities to dealing with new challenges. I fi nd that

politically justifi ed. By the way, all the money from further modulation

should stay in the member state where it was levied.

Some new member states have asked to be allowed to use meas-

ures under what we currently call Article 69. This article allows a govern-

ment to top-slice a direct payment ceiling for a given sector and spend

the money on special objectives in that sector. I’m in favour of allowing

new member states to do this, and I also want to make Article 69 more

fl exible in a number of ways.

On the other hand, this should in no way be taken as a signal to

turn back the clock on simplifi cation of the CAP. The CAP can bear a cer-

tain amount of diversity. But one of its pillars must remain a relatively

simple system of decoupled payments – backed up only in specifi c cir-

cumstances and under strict conditions by more targeted instruments.

It is mainly through rural development policy that we can best

address those needs of European farmers that are more diverse and

specifi c. The process of planning spending and matching it to those

needs is not always easy, but I think the public appreciates the efforts

that we make to spend this money in a targeted way.

Overall, I feel very positive about what has happened over the

last four years in the agri-food sector for all of the European Union.

The leap of enlargement went so well that we have hardly looked

back. We should not break our stride. Now is the time to move

ahead confidently.

850 million people in the world are under-nourished, a number that has hardly changed since 1990. To bring this terrifying fi gure down is the real millennium development goal, argues Mariann Fischer Boel.

As we are witnessing, higher prices can have an immediate and

dramatic impact on the world’s poorest populations, putting

years of development progress at risk. But in the longer term,

rising prices could be an opportunity to help rural communities in de-

veloping countries out of poverty.

In my view, the coin therefore has two sides. Both should be

at the centre of today’s discussion: how do we address the crisis

here and now while avoiding wrong policy choices that could

jeopardise development in the longer term. After all, higher prices

also provide a window of opportunity to stimulate agricultural

production in many developing countries that have great potential,

but where structural bottlenecks and low prices have left the

potential untapped.

A number of complex causes lie behind the evolution of

commodity prices. As the European Commission set out in a recent

communication, it is a mix of short-term and long-term factors that

have seriously disturbed the balance between supply and demand.

Since the underlying causes are complex, the European Union is

responding on several fronts. In the fi rst instance, we need to mitigate

the immediate effects of the food price shock. The EU is therefore

scaling up its contribution to relieving the impact of high food prices

on poor people around the world.

In parallel, we need to boost agricultural supply in developing countries

in the short term – and we need to act now to increase the harvests over

the next seasons. I have proposed to use some of the money saved on our

traditional CAP market instruments to meet this challenge. If European

farmers effectively give a helping hand to developing countries’ farmers to

get access to seed and fertilizer, this would be a clear sign of international

solidarity and would – in the interest of us all – increase production and help

to stabilise the markets.

This immediate response should go hand in hand with long-

term policies to strengthen agricultural production in developing

countries. More research in agriculture and knowledge building will

enhance productivity growth. New crop varieties, improved cropping

systems, more effi cient use of water and greater resistance to

diseases and environmental stress are amongst the ways forward to

put global agriculture on a sustainable footing.

WHO WILL FEED THE WORLD?

This term ‘new member states’ will continue to be used for analytical

reasons for the time being. But we should not be too concerned about

analytical labels. Any member state – whether new, old or even future –

has a clear stake in the health of the European Union’s agri-food sector

and rural areas. Therefore, I know that all member states will continue to

make very positive contributions to the ongoing discussions about the

CAP for the period until 2013 and beyond.

“It is mainly through rural development policy that we can best address those

needs of European farmers that are more diverse and specifi c”


Food Solutions. What are the most challenging issues in animal health

right now?

Thomas Kaufmann. The most challenging issue is that we are in the feed-

to-food chain so everything we do is ultimately judged by the consumer

in terms of behaviour and buying decisions. In the developed countries

at least, more people have less knowledge about modern animal pro-

duction and farming practices. This makes it increasingly difficult for the

industry to convince through facts and figures alone. Open and better

communication about what the industry does – that it is good for animal

welfare and of no harm for the consumers – should be a major issue for

individual companies and industry associations alike. More specifically,

the current food crisis calls for more efficient production, therefore, pre-

vention instead of curing must be issue number one to prevent any per-

formance drop.


ROUNDTABLE DISCUSSION

Dr Peter Street is Technical Director at Anitox,

responsible for technical, regulatory and R&D matters

in EMEA and Asia

Lykele van der Broek is Head of Bayer HealthCare’s

Animal Health Division and a member of the Bayer

HealthCare Executive Committee

Dr Thomas Kaufmann is VP Marketing of the Health

and Nutrition Business Unit at Evonik Industries

Dr Gabriel Varga is Director of Marketing for the EMEA

region at Fort Dodge Animal Health

David Aveyard heads up JohnsonDiversey’s European

Agriculture Business, and has been with the company

for 22 years

THE PANEL

Addressinganimal healthchallengesFood Solutions asks a panel of expertsfor their thoughts on the current hottopics in the feed-to-food chain.

ANIMAL HEALTH RT:aug08 14/8/08 13:40 Page 92

EvonikSP2_AD.indd 1EvonikSP2_AD.indd 1 29/7/08 09:49:0529/7/08 09:49:05

Whilst drug companies are continually develop-

ing new vaccines to help prevent the spread of

major disease outbreaks, it is increasingly im-

portant that all farms adopt best practices and

also undertake risk assessments to identify and

prevent potential problems.

Gabriel Varga. The emergence and spread of new

diseases, such as Bluetongue and potentially now

West Nile Virus and African Horse Sickness, are by

far the most challenging issues we face. As phar-

maceutical companies we are required to develop

new vaccines in ever-shorter timeframes – a chal-

lenge that only the strongest companies with the

brightest brains and heaviest investment in R&D

are equipped to meet.

Overall, I believe our industry is responding

well. Huge investments, both human and financial,

in fast-track R&D have ensured that a Bluetongue

vaccine has been developed in record time and the

European vaccination programme is well underway.

At the same time, we are also all working to max-

imise our production capacity to deliver the 600

million doses of the Bluetongue vaccine required

in Europe this year and to educate clients, farm-

ers and the public at large about this and other

emerging diseases. Finally with disease preven-

tion in mind, we are continuing to invest heavily in

R&D, not just internally but also in universities

and research institutes, to develop a range of di-

agnostic tools and techniques to help veterinarians and farmers to pro-

tect their livestock and to identify potential disease outbreaks at the

earliest possible stage.

FS. How serious is the threat from diseases such as avian flu, foot and

mouth and BSE? Is enough being done in terms of the production of new

treatments and the development of innovative farming techniques to re-

duce risk? And does there need to be greater leadership from government

or industry in tackling outbreaks of disease?

DA. The threat from outbreaks of diseases such as avian flu and foot and

mouth remains constant. The lesson learned from the 2001 F&M outbreak,

which cost the UK an estimated UK£9 billion, proved to be invaluable in the

handling of the 2007 outbreak, which saw the industry and government

agencies respond collectively to help prevent a repeat.

The risks attached to the highly pathogenic avian influenza A (H5N1)

remain one of the biggest threats we face from the spread of disease.

Infected migrating birds are the most likely carriers, and there is little we

can do to prevent bird migration. We can take measures to help prevent

the spread of the disease. Clearly any confirmed outbreak would lead to

a culling; however, there is no substitute for having in place good bio-

security practices that include effective cleaning and disinfection

regimes that use a proven viruscidal product such as JohnsonDiversey’s

VirAgri Plus.

Peter Street. The extremely high cost of feed, or the

lack of it in certain countries, is currently the great-

est challenge in the area of animal health. Poor-

quality feed or compound rations, in which

expensive nutrients are pared to the bone, will

compromise animal health in any species. The an-

imal’s immune system can be stressed, leading to

increased susceptibility to common diseases such

as Colibacillosis, Pasteurella, Clostridia and

Salmonella. Poor-quality feed ingredients also

carry a higher degree of risk, with high enterobac-

ter counts increasing the possibility of contamina-

tion and Salmonella being of particular concern.

The feed industry is struggling to deal with the

world shortage of high-quality feedstocks and their

availability. This is leading it to put pressure on EU au-

thorities to relax the laws on feed ingredients such as

meat and bone meal to allow greater flexibility in for-

mulations. These ingredients can often be highly con-

taminated with pathogenic bacteria, which pose a

serious threat to the consumer. The feed industry is

now making progress in cleaning up contaminated

feedstocks in a variety of ways, including chemical

and heat treatment, or a combination of both. In ad-

dition, legislation is increasing to limit the pathogen-

ic outbreak severity and promote safer, cleaner feed

and food.

Lykele van der Broek. There are numerous trends

and challenges that drive our business: the in-

creasing human-animal bond and the longer lifespan of pets enhance the

need for innovative, effective and high-quality products. In the farm animal

sector, there is a growing demand for animal protein, driven primarily by

population growth and the increasing income in so-called developing coun-

tries. Furthermore, the rising awareness for food safety and traceability as

well as the environmental impact of food production provides opportuni-

ties for innovative solutions. As a research-driven animal health company,

we see many opportunities for growth in these developments.

David Aveyard. In today’s world where we are seeing population grow by

around 1.3 percent annually – 78 million more people on the planet every

year – it is no surprise that governments and large global organisations

have sustainable solutions at the top of their agendas.

There are many issues facing today’s livestock farmer, not least the in-

creased costs of operating and maintaining a viable business. In recent

times we have seen unprecedented volatility in the cost of feed, fertiliser,

oil, energy and other costs. If we consider this commercial challenge along-

side the increase in demand for food supplies, then one could easily con-

clude that more intensive livestock farming will be integral to providing

sustainable food supplies. In turn, the need to have in place the high-

est standards and procedures to take care of animal health and hygiene

issues is paramount to prevent the spread of diseases that can have a

devastating effect, both on the farm and on the wider community.


DR PETER STREET

“The feed industryis struggling to deal with the

world shortage ofhigh-quality

feedstocks and their availability”


BayerAnimalHealth_AD.indd 1BayerAnimalHealth_AD.indd 1 29/7/08 09:42:0529/7/08 09:42:05

TK. The most serious threat on a global scale is

avian flu, especially in the event of pandemic

fever scenarios developing. To tackle this

threat, governments have invested massively in

improving the conditions in which poultry are

reared and have increased their focus on the

link between animal and human diseases.

There is also progress on updating internation-

al health regulations when faced by major

health crises.

Although some countries such as

Indonesia, Vietnam, Bangladesh, India, Egypt

and India are facing continuing and significant

outbreaks of bird flu, the situation in the rest of

the world is improving because of major efforts

by national governments. On a global scale, I consider FMD and BSE not

to be a major threat as they are not pandemic and can be contained

more easily.

As in any crisis, these diseases have a major impact on the industry

structure, meaning that those animal producers who invest in innovative

farming techniques grow and come out even stronger than before.

GV. We can never know exactly what disease is going to emerge next or

where, but contingency plans are now in place for most eventualities. A

good example is the vaccine banks now being held against a possible out-

break of avian flu. The effective handling of the Bluetongue outbreak in

Europe demonstrates that the EU is generally well prepared to handle dis-

ease outbreaks but, of course, an even greater threat lies ahead in the form

of emerging zoonotic diseases. West Nile Virus is an obvious example,

given its potential for deadly transmission to humans.

There is no room for complacency and we will continue to play our part

in ensuring that the EU is as well prepared as it can be for all eventualities.

In fact, I’m delighted to say that Fort Dodge licensed the first vaccine for

West Nile Virus in the US and has great experience in the fight against this

dangerous disease.

PS. The threat from pandemic infectious diseases, such as avian flu and

foot and mouth, will always be present throughout the world as the trade

in feedstocks, breeding stock and animal products becomes increasingly

global. With avian flu, for example, the emphasis on free-range poultry pro-

duction actually increases the risk of exposure due to contact with, or ex-

posure to, migratory wild birds. The lessons learned from the last major

outbreak of foot and mouth have led to new restrictions on animal move-

ments, while innovative new measures such as ring vaccination are now in

place to help manage an epidemic.

BSE is a much-reduced threat due to the ‘breaking of the chain’ by elimi-

nating the risk from feeding infected material back to cattle. These measures

have been successful and should be continued. Meanwhile, the biggest prob-

lem with BSE is public education, political football and a sensation-starved

press. Allowing the use of meat and bone meal that has been properly manu-

factured from clean stock, with the added precaution of removing the brain

and spinal cord, has proven safe in the US for many years.

LvdB. Innovative pharmaceutical products are a precondition for healthy ani-

mals. Considering zoonotic diseases and food safety issues, they also con-

tribute to human health. Furthermore, innovation is a key factor in preventing

and treating new diseases. But innovation needs

certain framework conditions: well-trained and

highly motivated employees as well as science-dri-

ven companies that strive to develop new active in-

gredients, formulations and applications – in short,

companies that are willing to make considerable ef-

forts in research and development.

Innovation also relies on certain political re-

quirements: we are facing increasing difficulties

in bringing new products to the markets. There

are growing constraints in the registration

process of European countries. The decisions of

the responsible authorities are often not based

on scientific data alone; more often political or

even populist arguments are a factor. Therefore

it is our task to enhance mutual understanding

and promote the importance of innovation for an-

imal and human health.


LYKELE VAN DER BROEK

DR THOMAS KAUFMANN

“Open and bettercommunication aboutwhat the industry does– should be a majorissue for individualcompanies and industryassociations alike”

“With the enlargement ofthe European Union, thenew member states arefacing new regulatoryrequirements that willhave a major impact onthe market situation”


JohnsonDiversey_AD.indd 1JohnsonDiversey_AD.indd 1 29/7/08 09:50:3629/7/08 09:50:36

FS. Concerns over antibiotic use in farm animals

continue to be raised by consumer groups. What

do you say to such objections? And what are com-

panies such as yours doing to ensure food safety

from farm to fork?

PS. Consumer groups keep raising the issue of an-

tibiotic use in farm animals, but a lot of that is scare-

mongering. Most livestock producers are obliged by

law to use therapeutic antibiotics carefully, judi-

ciously and under veterinary direction, and to ad-

here to specified withdrawal times. The last thing

they want is to be accused of having antibiotic

residues in their meat or dairy products.

Our company specialises in preventing

Salmonella, as well as other bacteria and moulds,

in animal feed. We do not use antibiotics to prevent

or treat disease. Our goal is to prevent contaminat-

ed feed from reaching the animal in the first place,

with no risk to the consumer from residues or fear

of animal-borne human diseases such as

Salmonella. As feed prices escalate and ingredient

quality drops, our customers increasingly see this

approach as good insurance.

GV. We must all ensure that antibiotics are admin-

istered according to agreed best practice guide-

lines. If this is done, there is no risk. In the

meantime, we are continuing to put substantial

R&D efforts into researching new molecules to re-

duce the risk of resistance developing to existing antibiotics. We would also

advocate the wider use of vaccines for food chain protection, such as

Salmonella and others.

DA. Antibiotics are an essential tool in the treatment of disease and infec-

tion in livestock. However, the public are right to have concerns regarding

their overuse. Prevention of disease is always more effective than a cure,

and more can be done to prevent infections occurring, negating the need

for use of antibiotics. In this respect, suppliers have a key role in assisting

farmers with advice and support on how to reduce the risk of infections.

Today’s leading hygiene solutions providers are doing more than ever to

provide farmers with advice and information on how to manage risk and

put in place measures that reduce or eliminate spread of disease.

Technology is also helping the speed at which risk assessments can be un-

dertaken and reports produced, a qualified and experienced person with a

handheld tool can undertake a farm audit and have a report produced with-

in hours of the farm visit.

LvdB. It is our firm belief that there is a legitimate need in veterinary med-

icine for innovative antimicrobials. Used properly, they eliminate bacterial

infections, hasten recovery and improve animal welfare. They can also pre-

vent the spread of infection from animal-to-animal as well as from animal-

to-man. As one of the world’s leading research-based animal health

providers it is our first concern to ensure that our

products offer the highest standards in terms of

quality, efficacy and safety. This entails extensive

efforts in research and development, utmost care

throughout the production process and constant

vigilance during marketing.

In addition, we strongly support international

monitoring-surveys and we go to great lengths to

educate veterinarians and end-users on the ap-

propriate and responsible use of our products.

These efforts are especially important to ensure

consumer and environmental safety, to prevent the

risk of antimicrobial resistance, thereby safe-

guarding the benefits of our products. With our

Prudent Use Guideline we have established a clear

framework of requirements and recommendations

to ensure that the use of our quinolone-based an-

timicrobial is controlled and will provide maximum

benefit to animal health and welfare without com-

promising human health.

TK. This is another example of how difficult it is to

communicate. In the EU at least, consumer con-

cerns and consumer protection issues have led to

the ban of AGPs as a feed additive since January

2006, and they are only allowed for therapeutic ap-

plications. Obviously, not all people know that, as

you can see in many media reports and in such fre-

quent objections.

We at Evonik are only borderline involved in

that discussion, as we focus on additives with a proven nutritive and phys-

iological value such as amino acids. So topics like residues and develop-

ment of resistances are of no issue for us. On the other hand, we are part

of the feed-to-food chain, and we are conscious about it. In our mission

statement we state our desire to “act responsibly to protect consumers

and their health, knowing that out products are part of the food chain”.

It is one of our guiding principles, to systematically analyse risks during

production, storage and transportation of our feed additives in an ade-

quate way in order to minimise the potential risk to consumers and their

health. For that, we apply HACCP methods and are FAMI-QS certified.

Consequently, we continuously undertake internal and external audits.

FS. For many in the food production chain, the emerging markets of Central

and Eastern Europe represent significant potential for future growth – along

with a number of challenges. How important is the CEE region for you?

DA. Ever since the ‘Iron Curtain’ came down, Central and Eastern Europe

has provided companies with increased opportunities. As the old

economies of the East are gradually being replaced with more Western-

style economies, international companies continue to expand their busi-

nesses into Eastern and Central Europe. JohnsonDiversey is no exception;

CEE represents significant growth opportunities that are being matched

with significant investment in resources and facilities in this fast develop-

ing region. As with any opportunity there are challenges that need to be


DR GABRIEL VARGA

“With diseaseprevention in mind,we are continuingto invest heavily in

R&D, not justinternally but

also in universitiesand research

institutes”


Anitox_AD.indd 1Anitox_AD.indd 1 29/7/08 09:41:2329/7/08 09:41:23

■ More than 85 percent of global animal

health sales are generated in 15 major

markets

■ The US is the dominant market in the

sector, generating 36 percent of the

entire global total; no other national

market is responsible for a share of more

than seven percent

■ The structure of individual markets varies

widely, reflecting a combination of

factors such as climate, the prevalence

of particular animal diseases and the

relative importance of individual species

to national livestock agriculture

■ Products for use in companion animals

are responsible for over half of all sales

in some developed markets such as

the US and UK, but generate less than

five percent of sales in emerging

markets such as China and India

■ Global market growth is forecast at a

compound annual rate of 4.5 percent

during the second half of this decade,

driving sales up to almost US$21.7

billion in 2010

■ Sales in China will rise at a CAGR of

eight percent during the forecast

period, while market value in Brazil will

increase by six percent a year

■ Most developed markets will be

considerably more subdued, however,

with growth in Japan, Australia and most

major European countries forecast at

rates well below the global average

■ The US will remain the animal health

industry’s main growth engine, with

sales there forecast to rise at a

compound annual rate of five percent

■ The US will be responsible for 40

percent of global market growth, and

will reach a value of US$8 billion by

2010

■ China will cement its position as the

world’s second largest market for

animal health products, while Brazil will

replace France as the sector’s third

biggest market


met, not least of which is the regulatory challenge. Selling medicines and

disinfectants can require compliance with local legislation, and unfortu-

nately as the EU is still working through common directives, there is no real

quick-fix alternative.

LvdB. Central and Eastern Europe is an important region for us, with many

of the countries growing well above the international average. In the farm

animal sector we are especially successful in Poland, Hungary and the

countries of the Adriatic region such as Croatia and Slovenia. And we see

great opportunities in the EU accession of Romania. With the enlargement of

the European Union, the new member states are facing new regulatory re-

quirements that will have a major impact on the market situation. We expect

rising quality standards for animal health products in Eastern Europe. This ben-

efits animal health in general and it provides great opportunities for us as a

research-driven provider of high-quality pharmaceutical products.

GV. The emerging markets of the CEE region represent a colossal opportu-

nity and one that we have hardly even begun to exploit. These markets are

growing by the day as people’s quality of life and expectations rise. The

huge opportunity these exciting markets offer – if we can attract the best

people and establish a strong presence in them –

makes it our number one priority.

PS. The emerging markets in Central and Eastern

Europe are, for us, an area of major interest and

growth. Together with many of our existing multi-

national customers – from feed compounders to

primary breeding stock producers – moving into

CEE is a rewarding opportunity, with a number of

challenges including regulatory, logistical and ed-

ucational issues. As the CEE market grows in im-

portance as the food larder of the EU, so must the

level of vigilance in terms of keeping the end prod-

ucts that are produced there acceptable to consumers and healthy to eat.

The best place to start this process is by maintaining pathogen-free feed.

TK. On an absolute scale, CEE represents only a minor part of our total

turnover compared to regions like NAFTA, EU or Asia Pacific. On a relative

scale, however, we experienced comparatively high growth in the last few

years in this region and see this continuing in the years ahead. The oppor-

tunity, therefore, is to capture a major part of this growth by early posi-

tioning. We have two plants for threonine and for tryptophan in Slovakia

and Hungary; the one in Slovakia has been in operation since 1994, and the

Hungary facility since 2004. We have built up a competent sales and tech-

nical service team in all of the CEE countries who deliver on our promise

“Amino acids and more” by creating value for our customers through inte-

grated product and service solutions.

Generally, the biggest challenge in the region is to get and retain tal-

ented people. On the operational side, risk management is a major

issue. In countries outside the EU, red tape bureaucracy in regulatory

and customs affairs is difficult to handle and a real challenge, especial-

ly as we have to strictly adhere to the Evonik Code of Conduct of

Business Ethics. �

DAVID AVEYARD

INDUSTRY FACTS

“There is no substitutefor having in placegood bio-securitypractices that includeeffective cleaning anddisinfection regimesthat use a provenviruscidal product”

Source: Research and Markets


FortDodge_AD.indd 1FortDodge_AD.indd 1 29/7/08 09:49:5729/7/08 09:49:57

FS. What is the current situation regarding protein sources for the animal

feed industry?

RG. The variety of protein sources available to the feed industry is diverse,

however, those that provide the volume we need are limited. Soybeans,

fishmeal and animal by-products are the most important in terms of their

protein concentration and provide us the bulk of our protein requirement.

However, we need to look to other protein sources, either on a regional or

local basis or globally, to help feed manufacturers reduce costs. The latter

could include protein from other oilseeds such as rape-

seed or from new fish resources, such as krill.

FS. What are the challenges in this area and how are you

tackling them?

RG. The overall objective must be to reduce the cost of

livestock production in order to provide more affordable

animal protein products for consumers, particularly those

in emerging economies and in developing countries.

Their food prices are relatively high due to higher raw ma-

terial costs (protein sources are often imported) and the

efficiency in feed production. The following three steps

could help reduce food prices in developing countries: reducing protein

costs (and energy costs) to the feed manufacturer is key a first step, en-

suring the most effective use – through better feed formulation based on

animo acid profiles – is a second step and ensuring the resulting, accurately

formulated ration are delivered to the livestock producer in the best condi-

tion is the third. Obviously, all three factors have been and are continually

being reviewed in the developed world.

FS. Feed suppliers have had to cope with increasing safety concerns, epito-

mised by the BSE crisis – what demands are these safety concerns placing on

the feed suppliers and how is this situation being dealt with?

RG. The impact of BSE and the response to the disease by the feed industry has

been different in different coun-

tries and regions. In the EU for

example, all animal by-products

have been removed from the

feed/food chain under the EU’s

Feed Ban while the feeding of by-products from any species to the same species

has been outlawed entirely. Elsewhere, governments have handled the man-

agement of the BSE risk differently based on their own in-country risk analysis.

It is important to note that animal by-products are an impor-

tant source of protein and energy in livestock feed where

there is no BSE to be found or authorities are confident that

there is no risk from transmission.

The international feed industry defends the use of

animal protein and animal by-products in livestock feeds

based on sound science.

BSE led to the Codex Alimentarius – the United

Nation’s organisation responsible for safety in foodstuffs

traded across borders and for encouraging trade in food-

stuffs – setting up an ad hoc Task Force on Feed to produce

an internationally binding standard (the Code of Practice of

Good Animal Feeding) for feed manufacturers. The Code ensures food prod-

ucts produced are safe with regard to the feed livestock have consumed re-

gardless of whether they have been fed commercially-prepared feed or feed

made on farms. The Codex Code took five years to develop and was adopted

in July 2004 by the 170-plus member governments of the Codex Commission.

Feed manufacturers must conform to the standards within the Code and are

doing so. Codex member countries are incorporating the requirements of the

Code within their national feed laws where they exist.

The feed industry, through the IFIF and FAO (the United Nation’s Food

and Agriculture Organisation) and supported by STDF (the Standards and

Trade Development Facility run by the World Trade Organisation), have de-

veloped a Feed Manual which will be available in late August 2008 to ex-


Feed the world

ROGER GILBERT

According to the WHO Food and Agriculture Organisation there areseveral factors that will drive the global animal feed industry, includingpopulation growth, feed grain prices, environmental concerns andhealth and food safety issues. Food Solutions asks Roger Gilbert,Secretary General for the International Feed Industry Federation (IFIF),for his opinions on the challenges facing the industry.

“We need to look to other proteinsources, either on a regional or local basis or

globally, to help feed manufacturers

reduce costs”

EXECUTIVE INSIGHT

Roger Gilbert ED:aug08 14/8/08 13:50 Page 102

plain in feed manufacturing terms the application of the Code of Practice of

Good Animal Feeding.

Food safety begins with feed safety where milk, meat, fish and eggs

are concerned. Our Federation is keen to ensure that all feed manufactur-

ers are in compliance with the terms and conditions of the Codex Code.

FS. What are your thoughts about transparency in the animal food chain?

How can transparency help improve the food security and supply better

protein feed provision?

RG. To my mind transparency equates to traceability. Traceability gives us

the transparency we need in order to eliminate risk from the food chain be-

ginning with the raw material we use. Our legal requirement – under the

terms of the Codex Code of Practice for Animal Feeding – only requires us

to trace one step back and one step forward.

Many countries do this successfully already. It means feed industry

suppliers are fully aware that we need to know the bona fides of the mate-

rials they are supplying. We also need to know where the finished products

we make are going and how they are being used. Our labels describe what’s

in the product and include information on their safe use.

FS. It is clear that the feed industry must continue to look for alternative

and enhanced sources of protein for animal feeds – what are the alterna-

tive and enhanced options? In your opinion, what are the best options?

RG. Alternative sources of protein for use in animal

feeds include krill, bio-proteins, distillers grains from

the production of corn-based ethanol and genetically-

modified cereals and oilseeds. There are lots of other

potential sources of protein, but these are the signifi-

cant ones.

All in the above list could be seen as controver-

sial to a greater or lesser degree: krill is in plentiful sup-

ply in the southern oceans and has been a largely

overlooked source of high-quality protein which would

be especially useful for inclusion in aquatic feeds; Bio-

proteins produced through a controlled fermentation

process is a developed technology that uses natural

gas as its feedstock but has not yet been exploited; dis-

tillers grains from the ethanol process needs further

processing to provide our industry with a highly di-

gestible and uniform protein source and genetic mod-

ification should be captialised upon to provide protein

compositions that allow us to maximise the production

efficiency of our feeding systems.

All of these have their individual drawbacks as

well and only tailored research and development

work can address their constraints successfully. The

removal of undesirable substances and inhibitors from these materials are

two areas that require attention in all of the above sources. This work needs

to be undertaken with greater urgency and requires government support

and involvement.

FS. What are the environmental issues and challenges regarding pro-

tein sources for the animal feed industry and how are these issues

being tackled?

RG. IFIF, through its European member FAFAC, is participating in the Round

Table on Sustainable Soybean Production. This is one initiative the industry

is involved with to help ensure that the industry’s environmental impact is

reduced. We clearly see that providing more milk,

meat and eggs through greater feeding efficiency as

being key to reducing the impact of industry on the

environment.

We would also claim that the feed industry has a

significant positive impact on the environment. We use

many by-products that would otherwise go to waste.

We also use many crop and food industry by-products

that people would not or could not consume them-

selves, yet are good quality feed ingredients. We don’t

have to use food-grade ingredients if there are cost-ef-

fective alternatives available.

FS. What are your hopes for the future of protein

sources for the animal feed industry?

RG. Time is of the essence. We delay development of

sustainable and an expanded protein base at our

peril. The world’s communities are demanding

safer, higher quality and more foodstuffs, particu-

larly with regard to livestock products. While cur-

rent food price increases may be a result of record

oil prices, crop output that has fallen short of de-

mand in recent years and investors speculating in

the commodities markets, demand for food among emerging economies

and developing countries is putting added pressure on our livestock pro-

duction systems.

Protein is the foundation of that production. The world’s population

will increase 50 percent to nine billion people by 2050. We expect de-

mand for animal protein products to treble over that same time period.

Feed manufacturers will be expected to play their part is satisfying that

demand at prices people can afford without compromising safety. �


KEY OBJECTIVES

The principle objectives of the IFIF are to:

• Bring together compound feed manufacturers and

their partners

• Represent and promote the interests of the world’s

feed industry

• Foster the activities of national and regional

associations

• Examine and advise on common problems

• Collect and disseminate appropriate information

• Collect and disseminate feed production statistics

• Assist in organising meetings to promote the animal

feed industry

• Identify international sources of expertise for the

assistance of associations and their members

• Assist management of national and regional

associations, when requested

FEED FACTS

• TOTAL WORLD FEED OUTPUTIS AROUND 614 MILLIONTONNES

• FOUR COUNTRIES PRODUCE430 MILLION TONNES, OR70 PERCENT, OF THEWORLD’S INDUSTRIAL FEEDOUTPUT

• SOME 3800 FEEDMILLSPRODUCE OVER 80 PER-CENT OF ALL COMPOUNDFEED PRODUCED

• THE 10 LARGEST COMPA-NIES GLOBALLY PRODUCE65 MILLION TONNES

Roger Gilbert ED:aug08 14/8/08 13:50 Page 103

The growth in the UK of organic foods, re-

flects the public’s concern over the many

food safety issues of the last 20 years,

most notably salmonella in eggs (1988) and BSE

(1996). GM crops and E.coli 0157, added to the

perception that organic food was not only a safe

haven, but better for the environment and

human nutrition. These are contentious issues

openly debated by leading scientists.

What is absolutely certain is that the organic

movement has changed society’s thinking about

the food chain and led people to ask whether

human health could partly depend on the care we

take of animals, crops and the environment.

Poultry healthcareLong before these issues became so rele-

vant, UT Organics Ltd, under Ted Dickin, was

working with farmers and vets on understanding

how livestock health could be improved natural-

ly. Poultry was of particular focus.

Dickin worked on improving bird health and

performance, initially identifying metabolic indi-

cators such as vitamin and mineral status, later

supported by many on-farm trials and millions of

chick samples.

Orgamin, a mineral supplement has been

used to replace meat and bone meal (post BSE)

with remarkable results. Tests on 7.5 million

chicks have shown a reduction in FCR from 1.845

to 1.755 and mortality from 5.35 to 3.7 percent.

Gross margin gained 18.4 percent. Similar work

on breeders improved hen performance by an

extra 8.6 chicks.

Herban, a digestive enhancer based on herb

extracts, was trialled on a paired comparison of

two groups of 4000 young turkeys. At 13 weeks,

the trial group produced a 55 percent reduction

in mortality and 15 percent gain in growth.

Plant healthcare As with livestock, experts recognise that

stress, dietary imbalance and a weakened im-

mune system all expose plants to pest and mi-


Why organic is important crobial challenges. A new plant health im-

provement range, based on calcified seaweed

extract, which restores vigour without chemi-

cally damaging the environment, will extend

the UTO catalogue this summer. Typical results

on maize trials at two separate farms gave re-

spectively 16 and 13 percent yield improve-

ments per hectare.

Environmental careFinally, the UTO team is actively developing

an ecological cleaning range based on organ-

ic ingredients. The Envirocyte cleaning and

sanitising products, based on natural plant ex-

tract bioflavonoids, have application to the

agri-food sector, which is still very heavily de-

pendent on chemical-based disinfection.

These will be kinder to the environment and to

people. They are both anti-microbial and non-

biocumulative. They are stable, easy-to-use

and should be available this autumn, once tri-

als involving DEFRA and CCFRA have been con-

cluded. They comply with the EU Biocide

Products Directive and are attracting interest

from leading retailers.

Typical microbiological results (at two percent

conc. for five minutes contact time) are as follows:

Listeria monocyt. (challenged at 3.0 x log

eight) gave a 7.0 log kill; Salmonella typhi. a 7.1

log kill; Aspergillus niger a 6.5 log kill; and like-

wise for cultures of other significant pathogenic

and spoilage organisms. These ranges effec-

tively provide a more natural care of the food

chain and environment, without the use of

chemicals potentially detrimental to human

health. �

Contact UTO Ltd at [email protected] or call +44 (0)1422349118

“The organicmovement haschanged society’sthinking aboutthe food chain”Ted Dickin

ASK THE EXPERT

UTO ED:aug08 14/8/08 13:56 Page 104

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Can human beings fulfil animals’ basic

needs? The answer is no in most parts of

the world. Antibiotics and chemical stimu-

lants are abused at many farms, which mean that

animals are under great threat of virus attack.

Europe is one of the most populated areas

of the world and fortunately most Europeans are

aware of protecting the only earth we have. It is

the first area that has abandoned the antibiotics

regularly put on animal feed because they are

aware that once avian influenza breaks out there

will be no cure. Instead of relying so much on an-

tibiotics, the alternative ways include the usage

of bacteria, enzymes, trace elements, antioxi-

dants, vitamins and hormones. Genetically mod-

ified animals or chemical stimulants are not an

option and instead the European trend is to

choose and use natural organic materials to sat-

isfy both human and animal needs.

Test resultsDue to a global food shortage, minimising

feed waste is the only solution in the livestock

industry. Raycome’s six-year study of one of the

organic substances from Alberta, Canada used

in animal farms reveals marvellous results. The

results show that not only more than 30 percent

of the feed can be saved, but also that the envi-

ronmental impacts are close to zero.

The organic substance from the residue of

Canadian glacier pathways is enriched with nat-

ural macro-organic polyelectrolytes in complex-

ion with primary, secondary, tertiary and trace

minerals without any chemical manipulation.

Raycome calls this substance Polyelectrolyte

Oxygen Detoxifier, or POD. The residue carries

oxygen, instantly neutralising toxic-free radicals,

cheating minerals and vitamins into the living or-

ganisms and also serving as strong antioxidants.

All trials showed that almost all test animals sur-

vived, comparing with an average of 20 percent

lost in the control group.

Almost 90 percent of foul gas has now gone at

test farms, which means that in general people

cannot smell any ammonia gas. Because the ani-

mals are living in a good conditions they are living

a happier life. A happy animal’s return is the best

quality of meat, which is soft and tender because it

has lived without stress. Additionally, at least 30

percent of the feed cost can be saved, not to men-

tion the value of the meat improvement and the

tremendous saving of the labour cost.

Outside EuropeVirus and disease are so rampant in Asia

that there is a high death rate of the animals,

often from unexpected causes. The greatest

challenge in the region is getting past the long-

standing adaptation of antibiotics as the elixir at

the test sites here. Animal farm owners could

not believe that a natural organic product could

substantiate such a huge difference. After many

years of studies, one of the largest pig farms in

Asia has finally accepted POD as their primary

feed additive. Antibiotics, toxin absorbents, food

preservatives and excessive minerals have all

been withdrawn from their animal feed.

We at Raycome remain humble of learning

from the Mother Nature, by using its gifts to

solve the problems we created. POD is one of

those most rare and precious gifts. My hope is

that not only humans but also all other living

creatures on earth shall live symbiotically. All hu-

mans on the earth are responsible for cleaning

up the mess we created, thereafter improving

the quality of life. Raycome is committed to con-

tinuing the challenge of finding the gifts of the

Mother Nature, exploring their intrinsic attribut-

es and acquiring the science and technology for

their efficient and effective applications for the

betterment of ecology. �

Happy animals mean better meat


Dr Yuesea Eric Chen, President at Raycome International Corp, explains why organicfeed could make a difference to the lives of animals and the quality of meat.

ASK THE EXPERT

“Due to a global food shortage, minimising feed waste is the only solution inthe livestock industry”

Raycome ED:aug08 14/8/08 14:44 Page 106

RayomeInternational_AD.indd 1RayomeInternational_AD.indd 1 29/7/08 09:53:5629/7/08 09:53:56

The European Commission is on a mission: to ensure better food

safety in Europe. And although Androula Vassiliou, the new

Commissioner for Health and Consumer Protection, is pleased with

the Commission’s current record in food safety, she maintains that

there is no room for complacency; vigilance at all times will be crit-

ical to maintaining standards. “We have to work with the member states, with

NGOs, with the European Food Safety Agency – which gives us independent

scientific advice – and with our international trading partners. The

sole goal of this collective effort is to ensure that we maintain and

improve the safety of food for our consumers,” she says.

In terms of moving forward, Vassiliou is keen to stress her

goals. “Firstly,” she says, “we are constantly updating our legisla-

tion to ensure that it provides the best possible framework for our

food safety activities.” Secondly, the Commission will take the necessary prac-

tical steps to ensure that the legislation is properly applied by the EU member

states and that equivalent measures are in place in the third party countries

imported from. “Vital components of this activity are the inspections carried

out on the ground by our Food and Veterinary Office (FVO). This year we ex-

pect to carry out around 260 inspections throughout the world.”

If these inspections reveal threats to the consumer, decisive action is

taken. “If there are hygiene problems in a

meat plant, for example, we can insist that

production be stopped until the problems

are rectified,” says Vassiliou. If necessary,

the trade of a suspect food product can be

stopped within the EU or imports can be sus-

pended from third party countries. Vassiliou

also highlights the variety of tools at her dis-

posal to help make sure that the food prod-

ucts that circulate in the EU market are safe.

The Rapid Alert System for Food and Feed is

one such tool, as is the training programme

Better Training for Safer Food.

A fresh perspective


As the Commissioner for Health and Consumer Protection, Androula Vassiliou coversthree broad areas: public health, feed and food safety and animal health and welfare.Food Solutions caught up with her to ask about her strategies to ensure better food safetyin Europe.

Androula Vassiliou

HEALTH FOCUS

Androula Vassiliou ED:aug08 14/8/08 13:41 Page 108

InspectionsThis year, the FVO is rolling out a new, more integrated audit approach

to review the overall effectiveness of food safety control systems in the

member states. This will be facilitated by the fact that all member states

must now have their own comprehensive national control plan. The FVO’s

annual inspection programme covers both the member

states and third party countries. It is risk-based, takes ac-

count of the latest information on possible threats to the

consumer and is prepared in co-operation with the experts

in the member states so that the inspection resources are

used to the best possible effect.

“An important element in the risk assessment is the in-

formation we receive constantly on possible threats through

our rapid alert network,” explains Vassiliou. “This means

that the FVO plan must be flexible enough to enable us to

deal with possible problem situations that may arise in the

course of the year.”

PreventionGiven the devastating impact that serious disease outbreaks can

have on farmers, society and the economy, the Commission have come

up with a new animal health strategy for 2007-2013 entitled Prevention

is Better than Cure. The new EU animal health strategy aims to put a

greater focus on precautionary measures, disease surveillance, controls

and research, in order to reduce the incidence of animal disease and to

minimise the impact of outbreaks should they occur. “The EU’s animal

health strategy is based on the principle that prevention is better than

cure. Therefore our strategies focus on measures to prevent the occur-

rence of disease outbreaks,” says Vassiliou. These mea-

sures include enhanced animal disease surveillance

and biosecurity measures at farm level, such as the iso-

lation of animals to help keep diseases out of animal

populations, or to limit the spread of diseases within a

herd. In addition, threat prevention and crisis manage-

ment are aided by mechanisms such as the EU’s trace-

ability system to minimise the risks linked to imports

and the intra-Community trade of products of animal

origin and live animals.

However, the strategy encompasses much more than

just policies concerning the control of animal diseases. “It

also focuses on policy areas, which are inextricably linked to animal health,

such as public health, food safety, animal welfare, sustainable development

and research,” says Vassiliou. One of the main aims of the strategy is to re-

place the existing complex series of interrelated policy actions relating to


The new Community Animal Health Policy 2007-2013

provides the framework for animal health and welfare

measures over the next five years. Based on the

results of an extensive evaluation and a large

stakeholders consultation, the aim of the strategy is to

put greater focus on precautionary measures, disease

surveillance, controls and research in order to reduce

the incidence of animal disease and minimise the

impact of outbreaks when they do occur. The main

objectives of the strategy include:

• To ensure a high level of public health and food

safety by reducing the risks that problems with

animal health can pose to humans

• To promote animal health by preventing or reducing

the incidence of animal diseases, and in doing so,

protect farming and the rural economy

• To improve economic growth, cohesion and

competitiveness in animal-related sectors

• To support the EU Sustainable Development

Strategy by promoting farming and animal welfare

practices which prevent threats to animal health and

minimise the environmental impact of raising animals

PREVENTION BETTER THAN CURE

“Foodinformationis central to health”


animal health and welfare with a single simplified regulatory framework,

converging as much as possible with other international standards.

“The result will be an EU animal health policy that is robust, efficient

and effective,” she continues. Nevertheless, the strategy can only bring about

real change if everyone involved in animal health works together. For this rea-

son, Vassiliou has strengthened the capability to communicate with stake-

holders in an effective way, setting up an Animal Health Advisory Committee,

which includes representatives from non-governmental organisations across

the animal health sector, and that will provide strategic guidance.

Disease outbreaksDespite the prevention strategies in place, outbreaks of disease are

still possible, with avian influenza, foot-and-mouth disease (FMD) and

other threats all posing a real risk to the food supply chain. “Should an

emergency occur, our ability to take rapid decisions is of high importance

in limiting and controlling animal-related threats at EU level,” says

Vassiliou. “We have put in place measures such as the establishment of a

rapid response network, crisis management units and an EU veterinary

rapid response team, as well as reinforced EU antigen and vaccine banks,

which will help combat outbreaks should they occur.”

One of the animal diseases with the highest economic impact is foot

and mouth disease. The control measures for FMD have been harmonised


The Rapid Alert System for Food and Feed (RASFF) was

put in place to provide food and feed control authorities

with an effective tool to exchange information about

measures taken responding to serious risks detected in

relation to food or feed. This exchange helps member

states to act more rapidly and in a co-ordinated manner

in response to a health threat. Essentially it consists of

clearly identified contact points in the Commission and

at national level in member countries, exchanging

information in a clear and structured way.

The member states shall immediately notify the

Commission under the rapid alert system of:

■ Any measure they adopt which is aimed at restricting

the placing on the market or forcing the withdrawal from

the market or the recall of food or feed in order to

protect human health and requiring rapid action;

■ Any recommendation or agreement with professional

operators which is aimed, on a voluntary or obligatory

basis, at preventing, limiting or imposing specific

conditions on the placing on the market, or eventual use

of food or feed on account of a serious risk to human

health requiring rapid action;

■ Any rejection, related to a direct or indirect risk to human

health, of a batch, container or cargo of food or feed by a

competent authority at a border post within the EU.

THE RAPID ALERT SYSTEM FOR FOOD AND FEED

“Traceability is key for food safety”


at community level since 1985. However, following the 2001 FMD outbreaks

in the UK, the 1985 Council Directive was replaced by a new Directive

(2003/85/EC), which sets out detailed measures to rapidly control and

eradicate FMD and laid down provisions for disease preparedness, includ-

ing national contingency plans. It also sets the framework for the possible

use of emergency vaccination as part of the control measures in an out-

break. “Thanks largely to the strengthening of our response capacities

through Community legislation, the 2007 FMD outbreaks in the UK and

Cyprus were quickly controlled,” says Vassiliou.

Food labellingFood information is central to health and

consumer policy. In January 2008, the commis-

sion adopted a proposal to make food labels

clearer and more relevant to the needs of EU

consumers. “Labelling is one of the most ef-

fective tools of communication since it accom-

panies the product. The proposed regulation

on the provision of food information to con-

sumers aims to simplify, modernise and clarify

the food labelling rules, in line with the

Commission’s goal of better regulation,” ex-

plains Vassiliou.

The main changes that will be introduced

are mandatory nutrition labelling on the front

of the pack to provide information on ele-

ments, such as energy, fat, saturated fat, car-

bohydrates and specific reference to sugars

and salt on nearly all processed foods. One of

the major targets of Vassiliou’s proposal is to

ensure that labels are legible. “Consumers are

often complaining about lack of clarity, in par-

ticular due to the small text size, and this puts

them off reading the labels,” she says. “To im-

prove the legibility of the information provided

on labels we propose to include a minimum

print size for all mandatory information. This

should address the most urgent consumer

need for clearer information and make it easi-

er for businesses to comply with the general re-

quirement for readable and clear labels.”

Another important target of the proposal

is to ensure consumers get better and more

comprehensive information about the pres-

ence of allergens in the food they consume, in

particular by making the provision of information on allergens mandato-

ry. To ensure that voluntary information on the origin of food does not

mislead the consumer, the proposal describes clearly defined criteria that

should apply. “This should simplify the current situation where due to un-

certainty there is a proliferation of potentially misleading voluntary indi-

cations of origin,” she says. “Our proposal is under discussion in the

European Parliament and the Council. Once it is agreed and adopted it

will come into effect.”

As these discussions are still at an early stage, it is difficult to predict

when the new rules would come into force, but it could be within one or two

years. For the rules on nutrition labelling, however, the proposal foresees

a transitional period for their application of three years, and five years for

small businesses.

Transparency and traceability Traceability is key for food safety. It is a very important tool, which en-

ables the food control authorities in Member States to identify all food prod-

ucts potentially concerned with a safety problem,

and to withdraw them, if necessary, from the food

chain, in case of contamination by pathogens or

by a chemical substance, for example. Traceability

is a general obligation, which was introduced in

the EU Food Law in 2002. “It means that all food

business operators shall put in place systems and

procedures in order to be able to identify and com-

municate to the competent authorities, for any

product, the information on the business from

which they have obtained the product, and on the

one that they have supplied it to,” says Vassiliou.

“It is also a general obligation for national control

authorities to check that all food business opera-

tors on their territory comply with the traceability

obligation.”

Transparency is also a key principle of Food

Law, which states that public information shall

be ensured appropriately in case there are rea-

sonable grounds to suspect that a certain food or

feed may present a risk for human or animal

health. “In its role of ensuring that Community

Law is implemented adequately and in the same

way in the whole EU, the Commission is con-

stantly ready to co-ordinate, if necessary, what

national authorities are doing in these areas, and

to take any action, in accordance with the provi-

sions of the Treaty, in cases where Member State

overlooked their obligations.”

Future focusThe ultimate goal for Vassiliou remains en-

suring that food in the EU is safe. In order to

achieve this goal over the next couple of years,

particular emphasis will be placed on preserving

the efficiency of controls. “The FVOs draft inspec-

tion programme for 2009 is in preparation and it comprises some 270 inspec-

tions with a geographical balance of roughly 65 percent in member states and

35 percent in other countries,” explains Vassiliou. “We will also work to keep

the RASFF system efficient as timely information is paramount for the early de-

tection of potential problems in the food chain. Then there is a series of other

areas such as, the evaluation of seed legislation, food information to con-

sumers, the food improvement package and so on, that will be in the forefront

of our activity and of our efforts to ensure food safety in the EU.” �


FOOD AND FEED SAFETY FOCUS

Vassiliou’s main focus is on

maintaining a high standard of

safety and ensuring quick

reactions to any threats that do

arise, examples include:

• The implementation of the

Hygiene Package and the

Official Food and Feed Controls

Regulation

• New rules on Health Claims and

Fortified Foods

• Concrete actions to reduce

Salmonella at farm-level

• The reveision of the legislation

on pesticides

• New rules on food labelling

and updating the measures for

novel foods


Keeping your coolRobert Arendal, Chairman of the Cool Chain Association, explains the potential environmental benefi ts of an effi cient supply chain.

GREEN FOCUS

During the last few years, the international media has con-

tinuously directed our attention towards global warming.

Although man-made contribution to climate change is only

a small part of the total negative impact on the world’s

climate, we have been alerted to the importance of fi nding

solutions in order to reverse the global temperature increase.

Consequently, we need to change our way of life and fi nd ways

to cut the CO2 emissions, greenhouse gas (GHG) footprint and the

pollution that we infl ict on our world. But getting to that conclusion

was the easy part; how to go about cutting CO2 and GHG emission is

far more diffi cult. Partly because it will severely change our way of

life while at the same time we are far from sure of the results of the

proposed changes.

Needless to say, the world’s scientifi c view is highly respected and if

anyone will be able to guide us towards the right undertakings to reverse

global warming, surely our leading scientists are. Yet even scientists do

not always agree on the methods of how to tackle this gigantic task. And

complicating this undertaking is that in order to succeed, it must be a

global effort. On the other hand, this is no excuse not to move ahead and

take the necessary actions and measures to start the road towards cut-

ting pollution and improving the environment. The present Kyoto conven-

tion did not get us very far, because part of the western world did not join

nor even wholeheartedly support the convention.

Furthermore it can be debated that the present Kyoto convention in-

cludes the right ingredients and methods to reach the targeted results,

at least in a successful and economical way. Instead however, many

scientists say that we should spend the allocated funds on battling the

world’s poverty or the supply of water and food to those in true need,

not to mention human health issues in many parts of the world; the list

of which is almost endless. Yet we are told that if we do not undertake

serious action to combat global warming, the other urgent issues men-

tioned above might have little effect anyhow, as the planet’s climate

shall make it diffi cult for humanity to survive at all. This might sound

like a doomsday vision, yet it is not an impossible scenario.

ActionThere is no doubt that we must take serious action to combat

global warming while at the same time raise the quality of life for a

large part of the world’s underprivileged population. The action in

both categories is necessary to bring reasonably fast results within

affordable economic and socially acceptable terms. And it must be

universal, which is the real challenge.

To replace our present dependence on fossil fuel as our major

supplier of energy, we need to develop new technologies for sustain-

able energy from sun, wind, hydro, nuclear and other forms of energy


THE COOL CHAIN ASSOCIATION

1. Was founded in 2003

2. Aims to represent all members of the cool chain, even competitors

3. International membership includes DHL Global Forwarding and FedEx

4. Published the CCQI

5. The aim of the CCA is to make the CCQI Standard a part of the

selection criteria for retailers and brand owners

FAST FACTS

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supply, mainly for electricity. We will also need to develop biofuels

and other forms of sustainable energy for part of our transport needs.

All must be zero CO2 emission (or at least an emission that can be

‘absorbed’ or neutralised by nature itself), and non-polluting. I am

extremely optimistic that we shall fi nd the solutions.

But the short supply of food and water is another matter. Firstly,

they go hand in hand – no food without water. While two-thirds of our

planet is made up of water, fresh water is not in unlimited supply. Al-

though we can generate fresh water from salt water, we need to better

utilise the limited supply of fresh water, and we have to ensure that

the entire world population has access to fresh water. Not only for sur-

vival, but also to grow or make food; another necessity for survival.

Nature is very, very generous. But nature also has its limits. While

we can improve the technique on how to grow crops, there are limits

for ‘acceptable’ levels of the use of fertilisers; the soil cannot accept

endless amount of fertilisers and we are polluting ground water that

in turn will contaminate our fresh water and our health.

But as certain food supplies are in abundance, others are becoming

scarce and food prices rise. As a consequence, we need to develop new

ways to meet the ever-increasing demand for food, but especially we

require better use and management of our present food resources. And

we shall have to cut the waste of food. In the developed world we waste

up to 30 percent of food we have produced, maybe even more. A good

part of that waste is in the supply chain. We have grown, produced and

harvested the food, but we waste it in transporting and delivering it to

consumers. And while we have insuffi cient information of the waste in

the non-developed parts of the world, partly because they do not even

have suffi cient food supply, we can – and must – do much better in taking

care of the food we have in our hands.

Needless to say that we have today new and improved methods

on how to handle and transport fresh, frozen, canned and dried food;

much better handling and transporting than we ever had before. But

if the records prove that we waste up to 30 percent in handling and

transportation, we clearly have a challenge to improve the end results

– and reduce that waste. To do so, we need to better manage the food

supply chain; for fresh products that includes the ‘unbroken cool chain’.

To achieve such improvements is far from an impossible task, but it re-

quires that we set our mind to achieve the improvements we need.

Cool supply chainThat was the reason for developing the Cool Chain Quality Indicator

(CCQIs), a master table for improving the quality of handling and trans-

porting perishable and temperature sensitive products (PTSP). The

CCQIs, developed in a co-operation between the Cool Chain Association

and Germanischer Lloyds, is an intelligent solution to improve the qual-

ity of fresh products and as such is a recognised solution to improve

shelf-life, food quality, cut waste and in general achieve an unbroken

cool chain. The Cool Chain Association, a non-profi t association work-

ing in co-operation with the World Health Organisation as well as other

institutions, is composed of a membership from a wide selection of

companies on a global basis, each involved in the food chain in one way

or the other. The membership of the CCA ranges from airlines, forward-

ers, trucking and handling companies to manufacturers of equipment

as well as many other sections of the PTSP industry.

Furthermore, supermarkets and retailers have expressed inter-

est in adopting the CCQIs to further improve their local distribution

and handling of fresh products in order to meet increasing customer

demand for quality.

In the long-term perspective, the CCA objective is to make the

CCQIs a global standard that aims to cut waste in the food supply

chain, reduce the CO2 emission from the PTSP industry and improve

the quality of distribution as well as the supply of fresh food.

Adopted on 11 December 1997 by the 3rd Conference of the Parties,

The Kyoto Protocol is a protocol to the International Framework

Convention on Climate Change with the objective of reducing

greenhouse gases (GHGs) that cause climate change. As of May 2008,

182 parties have ratifi ed the protocol. Of these, 36 developed countries

are required to reduce greenhouse gas emissions to levels specifi ed

for each of them in the treaty. The 137 developing countries have no

obligation beyond monitoring and reporting emissions.

THE PROTOCOL ESTABLISHED THE FOLLOWING PRINCIPLES:

• It is underwritten by governments and governed by global

legalisation enacted under the UN’s aegis

• Governments are separated by two general categories: developed

countries, referred to as Annex 1 countries (who accept reduction

obligations and submit an annual greenhouse gas inventory), and

developing countries, referred to as Non-Annex 1 countries (who

have no reduction obligations)

• Any Annex 1 country that fails to meet its obligation will be penalised

by having to submit 1.3 emission allowances in a second commitment

period for every ton of GHG emissions they exceed their cap

• As of January 2008, and running through to 2012, Annex 1 countries

have to reduce their GHG emissions by a collective average of fi ve

percent below their 1990 levels

• ‘Flexible mechanisms’ allow Annex 1 countries to meet their

GHG emission limitation by purchasing GHG emission reductions

from elsewhere

KYOTO PROTOCOL

Robert Arendal

ROBERT ADRENDAL.indd 113ROBERT ADRENDAL.indd 113 14/8/08 13:53:0814/8/08 13:53:08

Bacterial growth Storing food or raw materials leads to high hygienic demands. Most

manufacturers require humidity levels below 40 percent RH to avoid growth

of bacteria.

Most foodstuffs are preserved and unaffected at humidity levels

below 50 percent RH. For reliable protection, irrespective of external

weather conditions, dry air produced by a desiccant dehumidifier is the

best storage solution.

Energy efficient storage With desiccant dehumidification air is

blown though the rotor (drying wheel) and the

humidity in the air is absorbed by the hygro-

scopic desiccant silica gel. The air leaves the

rotor as dry air. In a separate sector, regenera-

tion air is blown through the rotor to remove the

accumulated moisture. The resulting wet air

(which contains the removed moisture) is ex-

hausted outside the production or storage area.

Further optimisation developments for en-

ergy savings from Munters means desiccant de-

humidifiers can now incorporate the latest

patented Powerpurge rotor technology, which

reduces energy consumption even further.

SilosStoring raw materials like sugar, cocoa, salt

etc. in silos often causes problems. Due to the

fluctuations in the outdoor temperature con-

densation is created on the internal silo walls,

creating a basis for bacterial growth.

Hygroscopic materials absorb moisture and

cause the materials to lump together, creating

handling difficulties and require frequent clean-

ing. By keeping the relative humidity in the silo

at a low and safe level, these problems are

avoided.

Storage tentsWhen in need of a simple, inexpensive,

method of storage, the giant tent building made

from non-water permeable fabric is a perfect low

cost solution. Using desiccant dehumidification

for protecting the stored articles, the storage

needs no insulation, just a proper air-tight con-

Dehumidification – the bestsolution for storing food


By Christine Modla.

INDUSTRY INSIGHT

Most foodstuffs deteriorate when exposed to high humidity,

however, most materials are preserved and unaffected if hu-

midity levels fall below 50 percent relevant humidity (RH). For

more than 60 years Munters have provided solutions for safe

and energy efficient storage ensuring reliable protection using desiccant

dehumidification.

Desiccant dehumidification Heating is a common method for trying to control the humidity in

stores. The relative humidity in a heated store will often fluctuate between

20-70 percent RH, exposing goods to humidity

levels critical to quality and shelf life. This

method can be both ineffective and costly as the

energy cost for heating a store will typically be

twice the cost compared to desiccant dehumid-

ification. Keeping in mind that stored materials

in a heated store will often not even be effi-

ciently protected, heating ends up being a cost-

ly, ineffective method.

In a desiccant dehumidified store the rela-

tive humidity can be controlled and constant

throughout the year – completely independent

of outdoor variations, thus ensuring the stored

materials keep their high quality, meaning less

waste/loss and a constant and protective envi-

ronment.

Energy efficient dry airAll foods have their ‘comfort zones’ se-

curing a high quality and a longer shelf life.

When exposed to too high relative humidity,

food products will absorb the water in the am-

bient air or suffer due to condensation related

problems.

Mould, mildew and insects At humidity levels above 70 percent RH

mould, mildew and fungus appears as the con-

ditions are optimised for propagation affecting

raw materials, food, seeds, grain etc.

Softening of packaging Above 55 percent RH cardboard packaging

absorbs moisture and starts to soften resulting

in collapsing boxes.

50

25

00 50 70 100

Tem

pera

ture

˚C

Growth ratemm per day

3

2

1

0.1

Storage and packing at Munters

RATE OF MOULD GROWTH

MUNTERS:aug08 14/8/08 13:46 Page 114

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is eliminated as condensation no longer occurs.

While ice and frost disappears, the efficiency of chillers and evapora-

tors is improved, leading to energy savings. The need for defrosting will be

significantly reduced, as will the need for cleaning. Both activities save cost-

ly manpower and avoid close down of storage.

Hygiene issues like the formation of mould on products and structures

will be solved as bacterial growth is significantly reduced at relative hu-

midity levels below 50 percent RH, providing greater fulfilment of the

HACCP regulations.

Expert advice for the dimensioning of the optimal desiccant dehumid-

ification solution means taking advantage of supplier data programmes

which incorporate climate data and calculate energy consumption based

on customers information on building structure, moisture load etc to de-

termine the most energy efficient solution. Compared to heating, the ener-

gy savings by desiccant dehumidifaction will typically amount to a 30-70

percent reduction.

Food producers face a battle to prevent costly quality, hygiene and

wastage issues arising during storage. Controlling high humidity in the

store as part of the HACCP assessment can increase product safety, shelf

life and provide greater security. �

struction. Whether storing raw materials or finished food, desiccant dehu-

midification ensures the optimal climate, keeping the high product quality

at the lowest energy possible.

Breweries and cellarsStoring fluids like beer in tanks and wine in cellars, often leads to con-

densation on the outside of the tanks and bottles. Constantly wet surfaces

form the perfect environment for bacterial growth and compromises HACCP

regulations. By dehumidifying the tank room or cellar with a desiccant de-

humidifier, the dewpoint of the air will be decreased so condensation no

longer occurs. Building structures benefit from the drier climate, the need

of maintenance work will be reduced and labels remain intact on bottle sur-

faces. In addition, the climate for employees will become more comfortable

and healthy.

Chilled and cold storesStores containing food require strict control of not only humidity but

also temperature. Many goods require storage at a humidity as low as 20

percent RH and a temperature of max 5°C to protect against product dete-

rioration. When it comes to stores where doors are frequently opened, the

high water content in the ambient air creates severe and dangerous prob-

lems such as fog, slippery floors, ice build-up etc. By dehumidifying the air

at the entrance to these stores, the source of the problem moisture ingress


Christine Modla is in charge of Munters European marketing. Munters has offices in 30 countries andwhen it comes to desiccant dehumidification technology are the global market leader. Munters isconcerned with air conditioning using green air treatment systems, for further information contact yourlocal office at www.munters.com or email [email protected].

Back in 1984 at Marabou in Sweden, Kraft Foods installed a desiccant

dehumidifer to secure the high quality of their confectionery products in

an automated chill store. After 24 years of impeccable functioning an

energy audit highlighted that replacing the old dehumidifier with a new

generation desiccant dehumidifier could cut the running cost by up to

32 percent.

Comparing different solutions, independent energy consultants

found that the Munters desiccant solution showed the most energy

efficient solution. The latest desiccant dehumidifier is now

installed and keeps the condition in the 50,000m3

chilled store

strictly at +5°C/50 percent RH all around the year – totally

independent of outdoor fluctuations in temperature and

humidity. By controlling the humidity Kraft Foods experience:

• Prevention of condensation

• No mould growth

• No chocolate blooming

• Packaging protected against softening

Jonny Hagenbjörk, responsible for constructions and

energy at Krafts chocolate factory in Marabou, Sweden: “To

our big satisfaction Munters took care of all details, from the

difficult cut-up and removal of the old unit to completing all

ductings and power installations. Life was made a great deal

easier for us, only having to deal with one supplier. We now

look forward to taking advantage of the new MCD

dehumidifier and feel confident that our products will be

perfectly preserved, as the dehumidifier helps us meet

hygienic demands, such as the HACCP regulations.”

CASE STUDY: KRAFT FOODS SECURE PRODUCT QUALITY

Munters MCD desiccant dehumidifier at theKraft Foods plant in Marabou, Sweden

MUNTERS:aug08 14/8/08 13:46 Page 116


FS. What challenges do agricultural producers

face today?

PS. With spiralling feed costs, rising energy

prices and consumers who increasingly

demand that the production methods used by

the agri business are sustainable and respon-

sible, the profi tability of the production chain

is experiencing pressure. Greater insight into

the production costs should lead to the fact

that the higher investments in animal welfare

remain profi table.

FS. How can data management infrastructure

support animal monitoring, and what benefi ts

does it offer?

PS. The computerised processes in a house

are a source of information about the environ-

ment the animals are raised in, their feed and

water intake and, using Fancom’s biometric

solutions, data relating to animal behaviour.

By extracting this data using a data manage-

ment infrastructure, combining it and present-

ing the end result in a clear structure, animal

producers are offered an insight into the

performance of their animals, the operational

processes, the fi nancial consequences and

possibilities to make improvements and initi-

ate actions aimed at optimising the results.

This method also allows producers to show the

chain of how the animals are raised in order to

safeguard their license to supply.

FS. Ease of use is a concern. How do you ensure

the technology meets individual requirements?

PS. Fancom has invested a huge amount of time in creating supremely

user-friendly software for its animal husbandry systems. The control

computers feature a large display and use clearly recognisable graphic

symbols. The ‘what you see is what you get’ principle is a particularly

important improvement. This means that the operation is geared to

the user’s actual situation; elements of the system that are unused do

not appear on the display. Automatic data collection is also a tool that

simplifi es how the system is used. No paper and data entry but data

that is always sampled straight from the source, arranged in an orderly

way at house, farm or central offi ce level and clearly presented in easy

to understand graphs and dashboard

applications. By connecting with the

customary key performance indicators

used in business the user can directly

relate the value of this information to

his experiences.

FS. Cost is also an important factor.

Why does it pay off to invest in a com-

puterised system?

PS. In order to be able to manage costs,

insight into the cost drivers is essen-

tial. Investing in systems provides a

real-time insight into the costs and

opens the way for improvements. At

Fancom we also offer the possibility to

limit the key performance indicators,

so that users can see immediately if the

production process is making a profi t

or whether action needs to be taken. In

addition, a properly controlled climate

and feeding process improves animal

performance. By cutting costs on the

one hand, and improving the technical

results on the other, our computerised

systems have a short earn back time.

FS. What role will technological in-

novations play for the industry in the

years to come? And which technolo-

gies will stand out?

PS. Firstly, the developments in

sensor technology enable an increas-

ing number of facets of animal behaviour to be monitored. This will

place us in a better position to measure the actual comfort level of ani-

mals and to maintain these levels using biometric control algorythms.

Secondly, there are developments in ICT that allow data sharing in the

chain. In the future we should be able to use business intelligence

solutions to directly convert this data into actions and the structures

will be a part of the existing enterprise software solutions. Fancom is

therefore investing in this technology, biometric sensor applications

and business intelligence as we are convinced that the industry will

require these methods for healthy profi ts and in order to continue com-

plying with the demands of today’s critical consumers.

Balanced technologiesFood Solutions catches up with Paul Smits at Fancom in order to understand the current state of data management in the agricultural sector.

Graduating as a mechanical engineer at Twente

University, Paul Smits started in an industrial

environment, building experience in plant layouts and

pilot productions. Since 2001, Smits has lead the

innovation and marketing group at Fancom. His focus

from this year has shifted to marketing to ensure

gains in marketshare and develop new business.

EXECUTIVE INTERVIEW

Fancom.indd 117Fancom.indd 117 14/8/08 13:34:0214/8/08 13:34:02


Since energy consumption accounts

for up to six percent of the total

cost of fl our milling, fl our and

semolina producers are interested

in fi nding new solutions to reducing power re-

quirements. In order to obtain an integral view,

the issue will be dealt with here from different

perspectives. Before this, we will analyse the

energy requirements within the process chain.

The purpose is to show where investments for

cutting power consumption will pay off and

in which plant sections energy consumption

is only of marginal signifi cance. The article

details analytical approaches and possible

measures to conserve energy. Its primary goal

is to contribute to the power consumption

discussion. It will also show well-known and

proven procedures to optimise energy usage.

Cost structure in industrial fl our production

In a competitive business environment,

much attention is paid to the operating costs

of the entire production chain. It is safe to

assume that most commercial fl our produc-

ers have already streamlined their processes

in terms of manpower requirements. This

means that the potential for further cost re-

ductions in this area is low. The focus must

therefore be on energy prices, which are a

substantial production cost factor. As a result

of utility price increases already made or still

to be expected, monthly electricity bills have

become a permanent issue in many compa-

nies. Figure 1 shows an example of energy

consumption in the various process opera-

tions of fl our milling.

Monitoring/fi ne-tuning of power consumption through the process control system

In order to fi ne-tune power consumption

in industrial processes, the fi rst thing to do

is to get a clear idea of the current situation.

For this purpose, a plant will ideally be divided

into plant sections or sub-processes that are

detailed as accurately as possible. The energy

requirements of these sub-processes can then

be accurately determined by integral power

measurements. This will provide an overview

as a function of time over the energy used

by the individual sub-processes at any given

point of time. By dividing the contract with the

energy utility into different time frames, it may

be possible to move energy-intensive proc-

esses to periods with lower rates. It is need-

less to say that in fl our mills this will only be

possible for a small number of sub-processes.

These include, for example, grinding of the by-

products from grain cleaning, bran pelleting,

raw wheat transfer from the storage bins to

the blending bins, etc. Another possibility is to

analyse plant sections that operate simultane-

ously. As power rates often depend on peak

power consumption, this may allow fi ne-tuning

of power usage.

Power measurements are also a suit-

able instrument for pinpointing process op-

erations with high power consumption. This

means that any investments made should

focus on sections where a fast return on the

investment is ensured.

Power distribution/infrastructureBefore considering the processes in detail,

we will briefl y discuss the power supply system

and the related electrical equipment used.

Whenever possible, transformers should be

installed as near as possible to the equipment

that uses the power. The longer the cable

routes, the higher the power losses. This is es-

pecially important today, since the current high

copper prices will generate high costs if cable

cross-sections are oversized.

Another important factor is the selection

of the electric motors. In the recent past, most

manufacturers of induction (asynchronous)

motors have substantially improved the effi cien-

cy of their products. As a rule of thumb, the cost

value of new motors should never be below 0.9.

Energy management in fl our millsGlobal energy price increases are once again sensitising the grain processing industry to the issue of power consumption in its value-adding processes, says Urs Dübendorfer.

49.7k Wh/t0.0 KWH

10.0 KWH

20.0 KWH

30.0 KWH

40.0 KWH

50.0 KWH

60.0 KWH

70.0 KWH

80.0 KWH

TOTAL PLANT

Total Plant 75.2kwh/t

Infrastructure

Warehouse

Auxilliary (compressor, air make up)

Flour packing/palletizing

Wheat feed, germs and screenings

Flour handling mill

Rebolting and bin filling mill

Mill 750 t /24h

2nd cleaning 31.4 t/h

1st cleaning 40 t/h

Intake pre-cleaning 200 t/h

ENER

GY P

ER T

ON

FIGURE 1: TYPICAL ENERGY REQUIREMENTS OF INDIVIDUAL PROCESS OPERATIONS IN A FLOUR MILL

INDUSTRY INSIGHT

“As a result of utility price increases already made or

still to be expected, monthly electricity bills have become a permanent issue in many

companies”

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Characteristics of motorsNot only must the quality of the motors

but also their starting characteristics be con-

sidered in the context of energy consumption

reduction. Depending on the service hours,

specifi c functions and power consumption of

drive motors, their circuitry may have an appre-

ciable impact on power usage. It is therefore

important in each application to determine

whether it is worth the cost to buy a somewhat

higher-priced system in order to conserve

energy over a certain time. The reliability of

frequency converters has improved over the

past years while their prices have dropped.

It may therefore be worth the trouble to con-

template their use in applications where their

cost was considered too high until recently.

Besides optimising the starting characteristics

of motors, frequency converters also improve

motor effi ciency up to almost 1.0 because they

prevent phase shifts in the motor windings.

On the one hand, improved power effi ciency

of the overall plant will reduce costs for power

factor compensation with regard to the capaci-

tor bank. In consequence, it will cut the cost of

the reactive (wattless) power itself.

Plant design and engineeringThe design of a plant, and especially its

fl ow of materials, has an impact on its energy

consumption. Sophisticated plant engineering

solutions allow energy to be saved. As a basic

rule, the plant layout should minimise material

conveying distances. Pneumatic lifts should

only be applied if they offer true added value

in the form of higher sanitation or fl exibility.

By adhering to this principle, solutions may

be found which have been considered rather

exotic up to now. For example, some fl our mills

already have the fi rst breaks located above the

plansifters, eliminating the need for elevating

the intermediate products. This somewhat

lower user-friendliness is offset by the advan-

tage of reduced energy consumption. Another

excellent example is fi nal fl our sifting. When-

ever possible, plant engineers should select

gravity feeding for the fl our screws. This will

eliminate the need for elevating all the fl our at

the end of grinding for fi nal sifting (rebolting)

and weighing.

Additional potential exists in the design of

the pneumatic intermediate mill stock lifts in

the grinding system. Improved sizing of suc-

tion lines may reduce the air volume require-

ment by up to 25 percent and the pressure loss

by up to 10 percent.

We all know that even minor energy sav-

ings at many points may add up to a respect-

able total reduction of power consumption.

Thus, it may be possible to apply only a single

motor to power the two superposed roll passes

of eight-roller mills. On the one hand, this will

cut the installation costs. In addition, a single

drive will operate in a higher-effi ciency range

and therefore have a direct positive impact on

the operating expenses.

The consumption peaks during starting

and stopping of motors is also often underes-

timated. This means that more attention must

be paid to continuous operation of equipment.

Prime examples of this are the compressors

that generate dust fi lter cleaning air or com-

pressed air for the in-plant network. Pressure

monitoring and speed variation by frequency

converters may slash the electric power con-

sumption of such auxiliary equipment by as

much as 40 percent. This is on top of the lower

installation costs, since – for example– the

need for pressure vessels is eliminated.

As mentioned above, minimising convey-

ing distances is one of the most effective

ways to reduce power consumption. This

applies in particular to the handling of the

fi nished products. An analysis of the fi nished

products of a fl our mill may reveal that more

of them could be made on the grinding sys-

tem itself and therefore would not have to

pass through the fl our blending section. This

is a classic example of a reduction in convey-

ing distance with an immediate impact on the

power bill.

Heat recoverySince we also use energy in our latitudes

to heat buildings or recycled air, we must

also briefl y point to the possibility of energy

recovery. In the grain processing industry,

energy in the form of heat is generated in vari-

ous sub-processes. Instead of exhausting this

thermal energy into the atmosphere, it may be

worthwhile to consider recovering it. Recov-

ered thermal energy can be used to preheat

the fresh air introduced into buildings during

the cold season, or for preheating the process

air used in thermal processes.

Urs Dübendorfer started his

professional career as a miller in 1984

and worked in various milling companies

within Switzerland as a Shift Miller and

Headmiller assistance. Since 1991 he has

worked with Buhler initially as a start-up

engineer for Flour Mills business. He is

currently Product Manager for the Grain

Milling business unit.

Process Advantage Disadvantage

Direct start

Star/Delta

Soft start

Frequencyconverter

Lowest investmentSimple installation

Lowest investmentKnown technology

Simple installationMinimum additional cost

Low start currentCos phi 1 (0.95-1)No voltage collapse

High start current (7x)Loading of transformerNorm/voltage collapse

High start current (4x)Loading of transformerNorm/voltage collapse

High start current (3x)Transformer breaker lowedVoltage collapse/over waves

InvestmentSpace requirementTurning motor & installation (EMV)

buhler.indd Sec1:120buhler.indd Sec1:120 14/8/08 13:33:0914/8/08 13:33:09


Founded in 1946, Habasit has been

setting the standards in the belting

industry for more than half a cen-

tury. Excellent knowledge of proc-

esses and needs have led to innumerable

innovations over the years. And constant

improvement of the supply, service and

support provided to customers make Haba-

sit the world’s number one partner when it

comes to belting.

Up and runningEffi ciencies inherent in conveyor belt sys-

tems are widely recognised in manufacturing

and general materials handling operations

where a product moves through processing

steps leading to packaging and shipment.

But damage and loss can occur when

delicate and/or small footprint products are

transferred between conveyor systems. It

occurs when such products become pinched,

fall between or sag into the clearance space

between adjoining belts or accumulate,

bumping together, on dead plates. In the

latter instance, there is also loss of controlled

spacing, which can adversely impact sorting,

counting and packaging.

The solution has a nameLeading the world of belts for food

processing, Habasit products stand every

ground. Take the most recent innovation as an

example: HabasitLINK M0870 Micropitch Flat

Top 0.3 inch, the new unique plastic modular

belt. Especially designed to ensure stability

of delicate products, the Micropitch provides

the world’s smallest pitch. With its small

nosebar diameter, the processing of fresh

or fl ash-frozen seafood, meat and poultry,

small fruits and vegetables, confectioneries,

unbaked and baked goods enters a whole new

league. Amongst general conveying lines, the

Micropitch belt is also applicable to labelling

machines and check weighers.

A new designUntil recently, nose-to-nose clearance

with plastic modular belts has been limited by

belt design and the diameter of the nosebars.

Typically, modular belts 0.5in. (12.7 mm) pitch

require a nosebar diameter of 0.75inch (19mm),

which means a minimal clearance between

nosebars of 0.87in. (22 mm). Now by combin-

ing a new belt design and a nosebar diameter

of 0.28in. (7 mm) spacing between belts can

be reduced to 0.55in. (14mm). Because the

pitch of this belt is reduced to 0.315in. (8 mm)

the potentially damaging polygon effect is

likewise greatly reduced. This new design pro-

vides benefi ts to the manufacturing process by

enabling smooth and tight transfer, improved

tracking and product stability while allowing

smooth running and smallest gap.

Better performanceHabasitLINK plastic modular belts

provide multiple advantages. In addition to

increased productivity, less waste and higher

level of operator safety, customers also

benefi t from the following advantages:

• Smooth surface, stable transfer: Best

grip top modules on the market and the

strongest connection between module and

rubber, thanks to an innovative mould solu-

tion (patented).

• Reliable product transfer, especially for in-

cline/decline applications: Small nosebars

allow narrow gap transfers between differ-

net conveyor modules.

• High temperature sustainable belts: Only

suitable plastic modular belts for use in

Habasit reinforces its lead in global belting technology through innovation combined with outstanding service. Customers do not get products ‘off the rack’, but tailor-made solutions, unparalleled consultancy and support. By Olaf Heide.

Belting solutions made in Switzerland

INDUSTRY INSIGHT

Habasit.indd Sec1:121Habasit.indd Sec1:121 14/8/08 13:35:3514/8/08 13:35:35


shrink tunnel applications, thereby avoiding

black specks and heavy dead weight of wire

mesh conveyors.

• Strongest belts on the market: Suitabil-

ity for pallet handling, high reliability and a

high factor of safety.

• Full range of roller top belts: Accumulation,

transversal loading.

• Fast and easy repair and thus downtime

reduction.

Silicone-coated processing beltsHabasit recently launched a new prod-

uct line of silicone-coated belts, especially

designed for high duty and delicate food ap-

plications. The silicone coating fulfi ls high-

est needs concerning abrasion resistance,

release properties and assures an extended

belt life and a good cost effi ciency. It features

a high-quality food grade silicone coating,

applied in a vulcanisation process on proven

one ply or two ply carcasses.

There are two different types of surface

fi nish. A super adhesive one that facilitates

an excellent product indexing and is suitable

for steep incline and decline applications.

The fi ne textile structured surface on the

other hand has improved release proper-

ties and is visually less delicate – forgiving

scratches and small wear damages.

Three different belt compositions enable

use in a wide area of applications within the

food processing industry. The belts bear

temperature conditions of up to 180°C, al-

lowing a wide area of application, like food

processing lines with sticky products such as

caramel, toffee and licorice.

The adhesive silicone surface facilitates

an excellent product indexing and the suitabil-

ity for steep inclines and decline applications.

The improved joint strength reduces prema-

ture belt failure and thus maintenance costs.

Setting the standardsOne way of extending the life of conveyor

belts – and thereby reducing costs, while

ensuring high standards of hygiene – is the

use of new, innovative materials. Habasit’s

Cleanline conveyor belts are coated with

a modifi ed Polyolefi n. A key feature of

this material is its outstanding release

properties. This ensures that fewer product

residues remain on the belt, and so reduces

waste and cleaning times. An added benefi t

is that Cleanline products are extremely

resistant to aggressive detergents.

Habasit HyGUARD (EU) and HabaGUARD

(USA/Canada/Asia) conveyor belts contain

an antimicrobial additive, providing an addi-

tional hurdle to the development of micro-or-

ganisms and biofi lms. This is a safety bonus

for any production area subject to extremely

demanding hygiene standards. However, it is

important to be aware that these products

don’t replace but complement established

hygiene measures.

HyGUARD food conveyor belts conform

with FDA and applicable regulations in the Eu-

ropean markets. HabaGUARD was developed

for the North American and Asian markets

and the additive is registered with the EPA

(Environmental Protection Agency, US) and in

compliance with FDA and USDA regulations.

Food packaging encompasses a wide

variety of diverse applications for conveyor

and processing belts. Habasit has the right

answer for just about every need.

Broad range of belting productsStanding at the very top of the belting

industry, Habasit has got what it takes to

make the decisive difference: a worldwide

network of partners and specialists that pro-

vide supplies and service within the shortest

time possible, reducing downtime to a mere

minimum; constant innovation and process

improvement; minimal waste; and highest

life expectancy. Habasit cares for the pro-

ductivity and needs of its customers because

together is where everyone can be strong.

The best products are nothing without

comprehensive consultation and support. For further information, please visit us on www.habasit.com or send an email to [email protected].

Olaf Heide is a mechanical engineer

with 15 years’ experience in sales and

marketing functions at Habasit. He is

currently Industry Segment Manager for

Food and Tobacco.

There are Habasit affi liated companies not

only in Europe, but also in North America,

Asia and Oceania. For high-tech products

Habasit has devised a network of local fab-

rication centres, based on its own affi liated

companies.

Habasit currently has 34 affi liated com-

panies, as well as numerous service centres

around the globe, thus allowing the company

proximity to its customers. 3500 employees

provide customers with expert advice, prod-

ucts of highest quality and the entire range of

tailor-made solutions.

Habasit is a family-owned joint stock cor-

poration and was formed in 1946. In 2006, it

increased turnover by almost 14 percent to

CHF 711 million €452 million) while invest-

ment rose by 304 percent to CHF 155 million

€ 96.5 million).

We at Habasit care for improvement.

A running system is one thing. Tailor-made

belting products by Habasit go further. To

provide all-in-one solutions that work even

better. Habasit means best products, opti-

mal processing and a global network of over

300 partners to ensure the fastest support

and service you could wish for.

“One way of extending the life of conveyor belts – and thereby reducing

costs, while ensuring high standards of hygiene –

is the use of new, innovative materials”

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FS. Demands on hygienic conveyors and belting in the food industry

are rising, and the focus is increasingly aimed at clean design and op-

eration. How has this changed the needs of companies when it comes

to their processing and packaging lines and how have you responded

to these trends in your offerings?

IH. The key drivers in our experience have been threefold. Firstly, food

processors are increasingly looking for high-temperature, non-stick

easy-release process conveyor belts or release sheets that minimise

the build-up of any food contamination and do not support bacterial

growth. Secondly, processors want products that are easily cleaned

and suitable for use in a wide range of cooking conditions and proc-

esses. Thirdly, they want products that are robust and economical but

can be replaced easily and at reasonable cost if mechanically dam-

aged. While Saint-Gobain’s traditional expertise has been in PTFE-

coated fabrics that work up to continuous temperatures of 260°C, we

have developed unique PTFE-fi lm fabric laminates that ensure superior

non-stick performance, easier cleaning and avoid build-up of food resi-

dues on the belt surface. Saint-Gobain has also expanded its range to

include high strength PTFE-fabrics that are extremely durable in steam

and moist environments.

SK. Stainless steel has always been the best choice for hygienic and

safe handling of bacteria sensitive products in both medical and food-

related applications. Our focus has always been – and remains – on ena-

bling fast, easy cleaning of conveying belts and associated equipment.

FS. In what ways have new technologies been incorporated into the op-

eration and management of processing and packaging lines, and what

advantages has this development brought?

IH. The use of PTFE-fabrics as high-temperature, non-stick food proc-

ess conveyor belts has been a relatively recent phenomenon and the

extent of their usage has increased signifi cantly over the last 10 years.

This refl ects on the increased availability and use of simple electronic

guiding systems that ensure the belts are tracking smoothly and me-

chanical damage is avoided. Secondly, the versatility of PTFE-fabrics

in terms of their ability to work in different cooking processes –rang-

ing from contact grilling using radiant heat, to steam cookers and

microwave or hot air drying tunnels–has allowed, in certain cases, for

these technologies to be combined in the one machine and facilitated

higher productivity, better quality and more appealing food products.

SK. The most signifi cant development in recent years has been the

use of pre-welded endless belts, making processing cleaner, safer and

faster. We work closely with OEMs in this sector to get across to end-

users the unique hygienic benefi ts of stainless steel, and the develop-

ment of pre-welded endless belts has only served to strengthen the

case for stainless.

FS. Improving profi tability is an ongoing aim for business in general,

and especially so in this competitive market. How can the right produc-

tion line technologies help companies to achieve such an aim?

Food Solutions asks Ian Hutcheson, Marketing & Development Manager at Saint-Gobain Performance Plastics, and Staffan Karlsson, Service & Marketing Manager at Sandvik, about new technologies, key developments and improving profi tability in the hygienic conveyors and belting sector.

Moving hygienic belting forward

TALKING WITH...

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IH. The key benefi t of any process conveyor belt and cooking system is

that it facilitates continuous production and hereby increases produc-

tivity, as well as making it easier to establish and maintain the same

processing parameters in ongoing production. We have worked with

OEMs, food processors and major quick service restaurants to turn

batch toasting, grilling, baking and vacuum drying operations into

continuous processes where the product is processed with a minimum

of handling and conditions are kept at pre-determined settings to

ensure it is properly cooked. Our CHEMFAB laminated belting products

have good steam resistance and this facilitates their use with continu-

ous hot water cleaning systems for a more hygienic environment. Our

work with the Swedish based OEM, Formcook, wich has developed

continuous contact grilling lines for meat, fi sh and vegetable cooking,

has allowed many processors to improve their output and profi ts sig-

nifi cantly since we fi rst started our co-operation 20 years ago.

SK. The safe production and transportation of sensitive foodstuffs is

central to a business’s survival as well as its profi tability; the fact that

a company can point to its processes and demonstrate its impeccable

standards of hygiene is a powerful marketing tool. Furthermore, our

worldwide presence and service means we’re able to provide a rapid

response to service calls and therefore maximise uptime, productivity

and, ultimately, bottom line profi tability.

FS. Reducing downtime and adhering to tougher sanitation and

hygiene standards have caused many companies to upgrade their

processing lines. How do you see the industry evolving to meet these

and other challenges? What will be the key developments over the

next couple of years?

IH. It is clear that the standards will become more demanding over time.

I see three major changes. Firstly, the industry will increasingly demand

confi rmation that all materials being used in contact with food comply

with the most demanding regulations

and standards. Secondly, there will

be an increased emphasis on regular

cleaning and materials that are easy-

to-clean and still retain their various

physical properties throughout their

lifetime. Thirdly, there will be an on-

going shift to continuous processing

lines with increased levels of process

control to ensure that the desired

recipe and processes are followed ex-

actly and consistently. This also means

taking raw food ingredients through the

preparation, cooking and cooling proc-

esses and onto the packing stations with

a minimum of interruption and manual

intervention. In Saint-Gobain’s case, we

are working to develop products with

even better non-stick properties and with

improved abrasion resistance so that the

useful lifetimes are further improved.

SK. A move to stainless steel belts for food processing or transporting

delivers an immediate upgrade from the point of view of sanitation. Add

in the benefi ts of greater system availability due to lower maintenance

requirements and faster, easier cleaning–plus of course the much longer

working life–and it’s not diffi cult to see where the industry is going.

And, it has to be said, increasing concern over diseases such as

BSE and avian infl uenza is only going to accelerate the move to stain-

less steel-based processing.

FS. How do your belting solutions reduce the areas where bacteria can

hibernate and grow?

IH. Saint-Gobain CHEMFAB belts have a number of unique advantages

as they are constructed from PTFE-fabric (Tefl on) laminates, where the

fabric that gives the conveyor belt the necessary mechanical robust-

ness is fully encapsulated in a multilayer cast PTFE fi lm that ensures

a crack-free and non-stick surface. Therefore, the belt surface will not

support bacterial growth and there are no micro-cracks or pores where

build-up can occur. The non-stick, low co-effi cient of friction surface

also means that it is very easy to clean any food residues after process-

ing is complete or when products and recipes are changed. With the

cleaned belt, one avoids any concerns of bacterial contamination and

any negative impact on taste. Finally, CHEMFAB high performance belts

are suitable for continuous use up to temperatures of 260°C, and obvi-

ously at these temperatures it is easy to ensure that all bacteria present

in the raw material food ingredients have

been fully destroyed.

SK. That’s an easy one to answer: a pre-

welded solid steel belt has no joints in

which bacteria can develop and no

fi bres in which germs can collect.

“The most signifi cant development in recent years has been the

use of pre-welded endless belts, making processing cleaner,

safer and faster” Staffan Karlsson

“We are working to develop products with even better non-stick properties and with improved abrasion resistance so that the useful lifetimes are further improved”

Ian Hutcheson

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StGobain_AD.indd 1StGobain_AD.indd 1 29/7/08 09:54:1529/7/08 09:54:15

Headquartered in China, the company is mainly involved

in developing, manufacturing, and marketing coated fi lms,

anti-counterfeiting laser holographic fi lms, BOPP fi lms, as

well as supplying customized color printing and packaging

services for its customers. As a technology advanced com-

pany who has 20 years in fi lm manufacturing, Shiner has

acquired 14 patents for its products and production proc-

esses, with more in pending for approvals. We have 3 plants

with a total annual output of 17,200 tons/year (will increase

to 28,100 tons/year at the end of 2008), which can meet

clients’ need in peak seasons. We estimate that our sales

for 2008 can reach 70M USD, 30% of which is contributed

from international sales to 18 countries.

ProductCoated fi lm is a functional packaging fi lm which is mainly used

for packaging for food (cakes, biscuits, nuts, snacks, etc ), drugs,

cosmetics and other consumer goods. In comparision with oth-

er common fi lms, coated fi lms have superior barrier properties

(high barrier abilities of moisture, vapor, fl avor and aroma), heat

seal-ability and printability, consequently they are often used to

package goods to extend their shelf life (our coated fi lms can

reach a one-year longer level) and prevent tampering.

Unique One-stop ServiceAs the largest coated fi lm manufacturer in China, also the only

one manufacturer who has all the facilities to provide one-stop

solution for food companies, Shiner obviously distinguishes it-

self from other competitors by not singly offering fi lm producing

for its customers, but more focuses on providing value-added

services to existing customers who are more concerned with

quality and seeking one-stop packaging solution.

Product Specifications as below:

Integrated Film & Specialty Packaging

Shiner International, Inc. ( NASDAQ: BEST, website: http://www.shinerinc.com ) is an emerging global leader in fl exible packaging fi lm industry engaging in providing one-stop packaging solutions for food company.

Company Overview

Product and Service

Shiner: the “BEST” Packaging

Solution Provider in Asia

Base Film Speciality Film Printing Packaging

Product

Name

EV 0.5

1.05

6.6

20

0.2

0.032

0.068

0.43

1.3

0.013

20

4.8

2.7

4.5

0.6

1.29

0.31

0.17

0.29

0.039

VPA

HPA

MWA

VMEA

Structure OTR23ºC(73ºC), 0%RH

ASTM D3985

cc/100in2.24hr g/100in2.24hrcc/m2.24hr g/m2.24hr

WVTR 38ºC(100ºC),

90%RH ISO15106-3

Key Specifi cations

PVOH CoatingPET Film

Acrylic Coating

Acrylic Coating

Acrylic Coating

Acrylic CoatingMet. PET

White Cavitated BOPP

BOPP Film

BOPP FilmPVDC Coating

PVDC Coating

PVOH Coating

PVOH Coating

Beijing

Shanghai

GuanzhoZUHAI PLANT

HAIKOU PLANT


Direct Sales RegionsMarket reached via converter and distributor

• Customer-oriented Packaging Solutions

• Excellent Product Quality

• Competitive Price for Purchases

• Short Lead-time

• Strong Technical Support

• Promised After-sales Service

Please Visit Our Website for More Information: Http://www.shinerinc.com

or Contact International Sales Staff:Ms. Jan Xie, International Sales Manager Tel: +86(898)6858 1565 / Mobil: +86-138075 63637 E-mail: [email protected] / [email protected]

Global Market

Broad Industry Acceptance

Photos of Films and Its Applications

Reasons For Your Choice:

Logo customers

• More than 50 major clients in over 15 countries.

• Major Customers Include:

EEC

California 65

FDA

ROHS

ISO

• Westfarmers (Australia)• KOROZO Ambalaj (Turkey)• American Multiplastics INC (USA)• Signature Flexible Packaging Inc. (USA)• CLP Industries Ltd. (Israel)• Iellefl ex (Italy)• Jamjoom Packaging ( Saudi Arabia)• Group Mexicano Imperial S.A. DE C.V ( Mexico)• Vinataba (The Vietnam Tobacco Corporation) • HSU FU CHI• Sony Music• Warner Music



Over the years, the technical proper-

ties of plastics have developed and

become increasingly more suitable

for use with food. Meanwhile, many

other materials like glass, tin and paper have

been replaced by plastic, especially in con-

sumer packaging. Plastic foils, cups, fl asks

and trays are meanwhile well accepted as con-

sumer packaging in combination with food.

But the development of plastics has also

had positive effects for other applications

within the food supply chain. Different technical

developments resulted in a wide range of plas-

tic grades, each with their own specifi c set of

properties. The possible applications have been

broadened by improving, for instance, impact

resistance, temperature resistance, chemical

resistance, different types of rigidity, transpar-

ency and approval for contact with food. Fur-

thermore, application of certain additives has

improved characteristics of the plastic material

such as detect ability or conductivity and made

them more suitable for the food industry.

Rotational mouldingRotational moulding is a process in which

plastic is converted into hollow shaped prod-

ucts without any seam or welding. Seamless

products are less likely to leak and easier to

clean. The process allows the plastic to be

transformed into various shapes without any

internal stress in the product. Products will

therefore be more impact resistant and have a

longer lifetime. Double walled products can be

created with an internal layer of insulation ma-

terial. Moreover, the rotational moulding proc-

ess creates a smoother surface on the inside of

the product that makes it easier to empty the

product and reduces the residues. And with

that, cleaning cost will also be reduced. Under

certain conditions it is even possible to clean

the container at 120 degrees Celsius, a true

advantage for certain food applications. And,

if desired, rotational moulding can create rela-

tively thick walls to make a product stronger

or able to carry loads. Therefore multi-trip

applications are common fi elds of usage for

rotomoulded products with a long lifetime. And

given the combination of material and produc-

tion process, the result is likely to outperform

other materials, such as stainless steel or tex-

tiles (Big Bags) in many ways.

INDUSTRY INSIGHT

Shaping plastic packagingBy Wim-Henk Stoppkotte, European Director of Sales and Marketing, Materials Handling Products, Promens.

Materials handling productsThe Materials Handling Products division

of Promens has proven for over 45 years that

combining rotational moulding and plastics

can lead to products with amazing product

features. Next to a wide range of storage and

transport products for the chemical industry,

Promens has also developed materials han-

dling products for several segments in the

food industry. Their products are applied in

the fi shing industry and slaughterhouses.

Many different types of food and food ingre-

dients are transported such as mustard and

mayonnaise, cereals and coffee but also yeast

and fl our. For every type of product there is a

container that fi ts.

The HopperThe Hopper is an example of what can

be created by rotomoulding plastic. The

design facilitates not only the use of the con-

tainer but also supports the company image

through its design and choice of colour. The

coned outlet of 60 degrees allows even dif-

fi cult fl owing solids to be emptied swiftly.

The choice of outlet sizes (50 and 80mm

horizontally and 300mm vertically) sets no

limits to the viscosity of the contents of the

container. The 1000 and 1800-litre versions

allow for optimal use of transport, dosing

or storage capacity. And the all-plastic con-

struction of this container is easy to clean,

non-corrosive and light in weight. A dissipa-

tive version was introduced earlier this year

for use in ATEX regulated areas.

Frequent introduction of new products is

essential to maintain our leading position in

the market. Later this year we will introduce

a new 300-litre container on wheels. This

container allows suppliers to serve custom-

ers effi ciently with smaller quantities than

the usual 500-600 litre quantities without

having to handle a large quantity of cans or

buckets. Customers of that size often do not

work with fork lift trucks and therefore this

new Cruzer will come in handy.

“Frequent introduction of new products is essential

to maintain our leading position in the market”

Wim-Henk Stoppkotte is Director of

Sales & Marketing for Promens’ Materials

Handling Products business unit in

Europe, and has been with the company

for 12 years. Prior to joining Promens,

he was engaged with Verosol and Curver

in international management roles. He

started with Promens (previously Bonar

Plastics) with responsibility for the

BeNeLux area, a role that has developed

within the group into the European

territory, and includes all product

development work.

PROMENS.indd 130PROMENS.indd 130 15/8/08 09:24:3715/8/08 09:24:37

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Most food processors and manufacturers

are well aware of the EU regulation

178/2002, which lays down to member

states the general principles and requirements for

food law. Article 18 of this regulation covers the

vital area of ‘traceability’, which states: “The trace-

ability of food, feed, food-producing animals and

any other substances intended to be, or expected

to be, incorporated into food or feed shall be es-

tablished at all stages of production, processing

and distribution.”

This places a legal responsibility on food

business operators to have systems and proce-

dures in place to identify who has supplied what

product, ingredient and even packaging to them

and when.

One need only look back to recent food

safety incidents – the widely reported Sudan 1

incident among many others affecting even the

largest brands – to realise that a situation re-

quiring a food company to quickly trace individ-

ual ingredients through batch processing and

delivery can happen to anyone at anytime.

Living up to expectations As well as the legal onus on companies,

high street operators are also driving the move

to traceability. Retailers are keen to ensure

that they have the necessary systems and

controls in place to minimise the likelihood of

food safety incidents and ensure they are able

to retain consumer confidence in the event of

an incident.

Total traceability of ingredients, products

and batches may be required to target affected

batches and enable instant, accurate and com-

plete product recalls.

Time to respondWith traceability clearly a priority for retail-

ers when it comes to reviewing potential prod-

uct lines and awarding contracts to suppliers,

the food production and processing industry

must respond to ensure compliance and stay

competitive. The alternatives are clear – inac-

tion could, in the event of an incident, lead to

termination of contracts and loss of reputa-

tion, not to mention punitive legal action.

Faced with issues such as the increasing

complexity of ingredients and the need to iden-

tify individual batches, plus the requirement for

real-time information, there are usually ample

grounds to cost-justify the move or upgrade to

an IT-enabled system.

BenefitsOver 20 years of operating experience from

the pharmaceutical industry have highlighted

three main roles for traceability systems: to

provide information to assist in process control

and management (e.g. stock control, material

usage, quality control, meeting regulatory de-

mands); to help when problems may arise (e.g.

processing issues or product recalls); and to

provide hard evidence about products in cases

of consumer concerns and to support claims

for your products.

There are knock on benefits for customers

too as improved identification and labelling

leads to reduced picking errors and returned de-

liveries, faster despatch and a more efficient

stock management system.

Getting startedTraceability systems are simply joined-up

record keeping systems, which ideally, should

fit easily into the current working practices of

the business – including integrating smooth-

ly into existing MRP and ERP systems to re-

duce manual processes.

Compatibility between the software for bar-

code label printing or RFID tag coding and the

hardware for recording and reading the infor-

mation is vital. Suppliers that can point to

proven experience implementing complete so-

lutions in other critical industries such as phar-

maceuticals or automotive have obvious

advantages.

A good solutions provider should be able to

offer software that can be operated on a wide range

of Wi-Fi or narrow band RF data capture devices as

well as mobile devices should you require it.

The cost involved may be less than you

think, but the benefits all-round could have very

positive effects on your business and on your

competitiveness. �

The traceability issue


By Marty Kerluk, New Business Development Manager at PRISYMID.

“Traceabilitysystems are simply

joined-up recordkeeping systems”

In February 2005, Sudan 1 became a

prominent news topic, particularly in

the UK. A Worcester Sauce produced

by Premier Foods was found to be

contaminated by the carcinogenic

dye. The contamination led to over

400 products being taken off

supermarket shelves, including ready-

made meals and pizzas.

SUDAN 1

For further information on PRISYMID Limited’s products andservices, please call tel: +44 (0)118 936 4400 or [email protected]. Alternatively, visit www.prisymid.com

INDUSTRY INSIGHT

PrisymID ED:aug08 14/8/08 13:47 Page 132

Prisymid AD:SEPT06 14/8/08 14:59 Page 133


The rise of Slow Food Although Slow Food, a philosophy around good, clean and fair food,has been around since the 1980s, it is getting increasingly recognisedas a way of life. Roberto Burdese, speaks to Food Solutions about thepopularity of the movement and his vision for the future of food.

LIFESTYLE

134P134 The Rise of Slow FoodP136 A Healthy ChoiceP138 Taste Test

P140 In ReviewP142 Rebecca GoozeeP144 Final Word

FOOD FORTHOUGHT

EARTH MARKETS

Earth Markets are one of the most recent and ambitious Slow

Food projects. The aim is to build a global network of farmers’

markets to create a viable economy in both developing and

developed parts of the world, whilst respecting the earth, local

culture and diversity and acknowledging the importance of food.

The pledge to create a system of national farmers’ markets

was undertaken in 2006 at the Slow Food Italy Congress in

Sanremo, and since then it has been

international in scope. The first

markets were launched in

2007 in El Mina, near

Tripoli, in Lebanon, and

Bamako in Mali.

Slow Food has set

itself a goal to

open 20 markets

over the next 12

months in Italy, as

well as others

around the world.

The Slow Food Movement was started in the 1980s be-

cause of a belief that food should taste good, be pro-

duced in a clean way that does not harm the environment

and be fair to the producers who provide the food. “It’s

very important that we choose this kind of food because

it has an impact on different aspects of our life, namely

the quality of our life and the quality of our environment,” says Roberto

Burdese, President of Slow Food Italy, the home of Slow Food.

There has been an increase in people interested in eating Slow Food

over the past few years and Burdese believes that this is down to a change

in the availability of high quality food. “Around 20 years ago, when Slow

Food was born, we were eating better in Italy and around the world, and I’m

not talking about restaurant food but the food that we would eat every day.

However, due to globalisation, the industrialisation of food and agriculture

has moved so fast that we now see and taste less quality in our food.” With

consumers realising that using chemicals in agriculture is dangerous, for

both the environment and health, they are looking for organic food, which

has less impact on the environment and is a healthier option for them.

Food crisis“We are currently facing a food crisis around the world,” says

Burdese. “And with food prices rising it’s harder to have good food and

know where it comes from. People feel unsafe if they don’t know some-

thing about their food, so they are looking for new models of distribu-

tion.” And one part of that model is the farmers market, as it allows

consumers to be a part of the food they eat and relate with the pro-

ducer. “In our earth market project, the management of the market is

made by an alliance, which includes all of the people involved, from the

producer and consumer to the local institution.”

Another element to consider in the fight against the food crisis is

changing the system of distribution in supermarkets, says Burdese.

“Supermarkets need to change their philosophy and start buying food

at a more local level, at least in terms of fresh food. Hospital, school and

work places will all have to change in the future too. There are areas

that we can change, and although it will be hard we need to start chang-

ing now because if we wait too much longer it will be too late.” ““Slow Food hasset itself a goal

to open 20markets overthe next 12

months in Italy”

Farmers Marker Ed P134-136:aug08 14/8/08 14:50 Page 134


FutureFor Burdese the future is about people eating with responsibility, pay-

ing attention to the food that they eat. Slow Food is not about a recipe or

an exclusive club, but more about embracing a way of life. “It is my great-

est hope to arrive at the moment when we can close Slow Food, because

all food will be slow. At the very least I hope that people will eat with at-

tention and responsibility – if you choose to eat junk food, then you know

what it means to eat it but decide that junk food is not a problem for you.”

The problem today, continues Burdese, is that many people want to eat

natural, good, clean and fair food, but they do not know how to do it be-

cause the food is too expensive, unavailable or hard to find. “I do believe

that more and more people will turn to Slow Food as more junk food,

chemical and artificial food becomes available around the world.” �

FS. What was the inspiration behind the

Real Food Festival?

PL. The main inspiration is the Slow Food

movement. Secondly, we have organised

some very successful taste festivals in the

past and noticed a common theme among

them was that the people, producers and

exhibitors were a core of the same people,

mainly because that are a bit bigger and

more successful and have worked out that

they need to do them to get noticed and

publicity. But that misses the thousands of

smaller producers who never get a chance

to go to an event because of the money

and resources it takes to actually attend

as a producer.

What we wanted to do with the Real

Food Festival was create an event that was

about selecting the very best producers

regardless of their size and then subsidise

them if the producer is small. For this

festival we subsidised around 400 of the

500 producers who came to the show.

FS. Are you featuring solely British

producers? And, of so, why?

PL. This year was around 85 percent

British with around 15 percent being

international. Although this may fluctuate

slightly we will always be predominantly

British because I think we should think

about food from our own country. There

are some potentially big issues around

food security in this country in the next

10 to 20 years. We are seeing many

headlines about how the world will be

unable to feed the population and we

need to hang on to our producers in order

that we don’t have to rely on international

imports in the future.

FS. There has undoubtedly been a rise in

gourmet and organic food in the UK,

what are your opinions on the reasons

behind this?

PL. Without doubt it is linked to concern

about the environment, sustainability and

global warming. If you go back even as

recently as two years ago you were

probably considered a bit of a hippy if you

were concerned about those issues, yet

nowadays, a couple of years later,

everyone is taking it seriously.

Clearly in the UK we still have a long

way to go and while there has been a big

rise in organic food and still only around 10

percent of the population buy their food in

this way. But while we have a long way to

go it is exciting that it is being talked about

a lot and more people are buying into the

idea that this is important, that this is a way

of thinking about and eating food.

FS. What are your hopes and projections

for the future of farmer’s markets in the

UK and across Europe?

PL. Farmers markets have a great future

because more and more consumers are

interested in engaging directly with the

people who produce their foods and that is

what farmer’s markets do. Markets like the

Real Food Festival promote an engagement

with the producer and consumers want to

see that passion and enthusiasm.

REAL FOOD FESTIVAL

Q&A with Philip Lowry, Festival Director for the Real Food Festival, the largestfood festival in the UK, held at Earls Court, London in April 2008.““It’s very important that we

choose this kind of foodbecause it has an impact ondifferent aspects of our life,

namely the quality of our life andthe quality of our environment”

Farmers Marker Ed P134-136:aug08 14/8/08 14:50 Page 135

136 www.hrmreport.com

A HEALTHY CHOICE

The subliminal sandwich empireHow a focus on providing a healthy alternative to thetraditional burger-and-fries fast food option has helpedSubway become a ubiquitous presence on our high streets.

actly the way they want them, and that has made a real impact on a lot

of folks. Even if someone goes into Subway and orders a full fat sand-

wich they can still feel a little bit better about themselves than if they’d

just walked out of McDonald’s with a burger and fries.” With obesity

being such a hot topic at the moment, this will clearly be a key driver for

future growth, and is something that Fertman will be keeping an eye on.

Looking to the future, Subway is set to expand worldwide. Fertman

anticipates that by 2010 it should have 30,000 stores open, with about

7500 of those being outside the home markets of

the US and Canada. “We’re looking to concentrate

heavily on our international expansion,” he says.

“As we look at our domestic growth we’re looking to

grow primarily with our existing franchisees, while

still bringing some new blood into the system. We

want to look at places that traditionally have been

difficult to penetrate with fast food.”

So there’s no room for complacency on this

menu? “Never ever, ever!” says Fertman. “We wrote the book on sub-

marine sandwiches, but competition is now growing in this category as

people recognise there is a lot of money to be made in serving healthy,

tasty, consumer-friendly products. We’ve seen existing competitors

growing and new competitors springing up on a global basis. We need

to keep an eye on competitors and keep one step ahead. We have bro-

ken some incredible records, but every time we break a record it seems

like we get about five minutes to sit down and pop the champagne and

then it’s on to the next thing.” Business as usual for Subway, then. �

136T he franchise business model has been

a great success in recent years, and

no-where is it better illustrated than at

Subway. Don Fertman is the Director of

Development at the sandwich giant. When he

first joined, the restaurant chain had 166

branches; today it has 29,661 franchises in 87

countries and territories worldwide, and

Fertman has played a big role in this rapid ex-

pansion. “I’ve seen all kinds of developments

over the past 25 years,” he says with a smile.

Much of the company’s marketing focus-

es on health as a selling point. Although this

strategy is increasingly used in fast food out-

lets around the world today, it was unique

when the business started out. The decision

to concentrate on ‘healthy eating’ has meant

Subway has escaped much of the obesity-related media swiping that

has happened to its competitors. But was it a deliberate marketing

ploy? “We’ve never specifically used the term ‘health’ but we’ve used

the word ‘fresh’ quite a bit,” says Fertman. “Many years ago, we would

call ourselves the fresh alternative because we always saw ourselves

as an alternative to the greasy burgers, fries and other fast foodstuffs

that were clogging people’s arteries.”

In hindsight it looks like a shrewd move, with healthy eating and

restaurant hygiene proving to be the top concerns

for restaurant and fast-food consumers according to

a recent Zagat.com poll. Over 93 percent of people

reported being concerned with the fat and calorie

content of fast food, and when asked how the ban-

ning of trans fats in fast food restaurants would af-

fect them, 96 percent of those surveyed said they

would eat out the same amount or more. Those

polled chose Subway as the best bet for a healthy-

options meal. The survey found the biggest irritants associated with

fast food dining was the lack of cleanliness, followed by nutrition con-

sequences, food quality, service and noise.

Fertman believes these health concerns have played a big part in

the firm’s success, and is confident they have a great product that ap-

peals to a wide range of consumers. “If a consumer wants to limit their

fat intake or calories, they can choose from our low fat menu; or if they

want full flavour and full fat, they can order a double-meat BMT with

double cheese. Our customers get those sandwiches custom-made, ex-

■ NUMBER OF RESTAURANTS

WORLDWIDE:

29,661 in 87 countries

■ NUMBER OF SANDWICHES

MADE PER YEAR:

An estimated two billion

sandwiches are served per year

■ ANNUAL REVENUES:

Worldwide sales for 2007 are

€7.6 billion

SUBWAY FACTS

““We always saw ourselves

as an alternative to thegreasy burgers, fries

and other fast foodstuffsthat were clogging people’s arteries”

Subway ED:feb08 14/8/08 14:05 Page 136

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138TASTE TEST

Big MacThe McDonald’s Big Mac comprises

of two 100 percent beef patties and

a little salt and pepper seasoning,

with an unbeatable sauce, lettuce,

onion, pickle and cheese in a

sesame seed bun.

Italian BMTSubway offers made-to-order

sandwiches and salads on various

breads. The Italian BMT is one of the

most popular sandwiches and is

made up of salami, pepperoni, ham,

cheese, lettuce, tomatoes, pickles,

green peppers, olives and onions on

white, Italian bread.

Variety PackKFC’s Variety Pack offers one piece

of Original Recipe chicken, two hot

wings and a portion of regular fries.

Energy: 429 KCalsProtein: 24 grams

Carbohydrates: Total 39 grams;of which sugars 3.1 grams

Fat: Total 21.2 grams; of whichsaturates 9.8 grams

Fibre: 4 gramsSalt: 4.3 grams

Energy: 495 KCalsProtein: 29 grams

Carbohydrates: Total 41 grams;of which sugars 9 grams

Fat: Total 24 grams; of whichsaturated 9 grams

Fibre: 5 gramsSalt: 2 grams

Energy: 710 KcalsProtein: 45.5 grams

Carbohydrates: Total 51.2 grams;of which sugars 0.92 grams

Fat: Total 38.5 grams; of whichsaturates 8.6 grams

Fibre: N/ASalt: 2.4 grams

Verdict: The healthiest option is Subway’s Italian BMT, but keep an eye on your salt intake – this sandwich containsmore than two-thirds of the daily recommended allowance.

Food on the moveFood Solutions puts three popular fastfood choices to the test andinvestigates the nutritional value of each.

Taste Test Ed P138:aug08 14/8/08 14:56 Page 138

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Hot, Flat and CrowdedWhy the World Needs a Green Revolution, by Thomas L. Friedman

Thomas Friedman’s bestseller The World Is Flat has helped millions of readers to see globalisation in a new way.

Now Friedman brings a fresh outlook to the crises of destabilising climate change and rising competition for en-

ergy – both of which could poison our world if we do not act quickly and collectively. Friedman proposes that an

ambitious strategy (which he calls Geo-Greenism) is not only what we need to save the planet from overheat-

ing; it is what we need to make us all healthier, richer, more innovative, more productive and more secure.

Food Solutions says: Hot, Flat and Crowded is classic Friedman – fearless, incisive, forward-looking and rich

in surprising common sense about the world we live in today. Friedman assesses the state of the world envi-

ronment and what we should be doing to stop it getting much, much worse.

Trust UnwrappedA Story of Ethics, Integrity and Chocolate, by Dan Collins and David Thompson

Using the time-tested technique of storytelling to illustrate complicated concepts, half of Trust Unwrapped (the

right-hand pages) is devoted to the story of corporate go-getter and entrepreneur Laura Anderson, whose at-

tempt to launch a reasonably priced, competitive and ethical chocolate bar leads her on a journey to find the

value of trust and integrity in both her personal relationships and her business career. The left-hand pages of the

book feature quotes, case studies, statistics and research to illustrate the lessons Laura learns on her journey.

Food Solutions says: The innovative left-hand/right-hand page format means that the parable part of the book

can be read in its entirety in just a few hours – making it ideal for a business flight – or it can be used as a tool

and dipped into for short but valuable nuggets of information.

Stuffed and StarvedMarkets, Power and the Hidden Battle for the World Food System, by Raj Patel

In case you missed it first time around, now is a great time to catch up with Raj Patel’s Stuffed and Starved.

Having worked with international policy-makers, visited local farming collectives in Brazil and Mexico, investi-

gated the all-powerful distribution networks, and gone behind the scenes in the kitchens of Europe’s McDonald’s

restaurants, Patel is uniquely placed to take a long and wide view of food production and tell the story of com-

mercial greed and helpless hunger that lies behind every meal we eat.

Food Solutions says: From farm to fork, this is the first book to look at the entire global food chain, revealing

the hidden complexities and terrifying simplicities of a planet squeezing itself dry in order to make half its cit-

izens obese and the other half malnourished.

Responsible readsThere is no shortage of people out there with advice on how to solvethe world’s inter-related food, climate and energy crises. So what dothe best of this quarter’s business book releases have to offer?140IN REVIEW

Book Review Ed P140:aug08 14/8/08 14:43 Page 140

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142REBECCA GOOZEEIs GM the answer?Controversies have long dogged GM foods andcrops, but could GM offer a way out of thecurrent food crisis?

The first commercially grown modified whole food crop was

the tomato, which was made more resistant to rotting.

Calgene, the company that developed the tomato, released

the products on to the market in 1994 and they were wel-

comed by consumers willing to pay up to five times the price of reg-

ular tomatoes. Even though production problems meant that the fruit

was ultimately unprofitable, the future for GM initially looked healthy.

But since the success of that first tomato,

GM foods have been blighted with a poor, often

unjustified, reputation. Labelled ‘Frankenfoods’

by critics who claim that they are an environmen-

tal hazard, causing unintended harm to other or-

ganisms, and a potential human health hazard,

research into GM foods is now seen as scientists

playing God and vilified by experts and the gen-

eral public alike.

However, given that the world is currently in the grip of a food cri-

sis that is increasingly seeing demand outstrip supply, could GM ride

to the rescue and provide a viable strategy for addressing food short-

ages? The global population has topped 6.6 billion and is predicted

to rise to nine billion by 2050; ensuring an adequate food supply for

the booming population is going to be a major challenge, particular-

ly with poor harvests and increasing weather problems, and it looks

like now might be a good time to evaluate our options. And GM foods

look like a pretty good option to me.

Firstly, staggering crop losses from pests result in devastating fi-

nancial loss for farmers, and further starvation in developing coun-

tries. While farmers typically use tons of pesticide chemicals annually,

consumers are wary of potential health hazards and causing further

harm to the environment. GM foods can help eliminate pesticides and

reduce the likelihood of crop failure.

Secondly, as we experience the effects of climate change, whether

it is colder, hotter, drier or wetter, it seems GM foods could be useful in

many circumstances where crops are at the mercy of extreme condi-

tions. For example, while an unexpected frost can destroy young

seedlings, an anti-freeze gene from coldwater fish has been introduced

into some plants that enables them to withstand cold temperatures

that would normally kill unmodified crops. And as the population grows

and more land is utilised for housing or biofuels over food production,

creating plants that can withstand long periods of drought or high salt

content will help people to grow crops in formerly inhospitable places.

Finally, malnutrition is common in developing countries where

people rely on a single crop, such as rice, as a main staple in their diet.

However, such crops do not always contain adequate amounts of the

necessary nutrients to help prevent malnutrition. Back in 2000, re-

searchers at the Swiss Federal Institute of Technology Institute for

Plant Sciences created a strain of ‘golden’ rice containing a high con-

tent of beta-carotene or vitamin A, to help fight against conditions

such as blindness caused by a lack of vitamin A. Almost a decade

later, the promise of golden rice remains unfulfilled; however, the first

field trials of golden rice started in Asia this year,

and the project is now backed by funding from the

Bill and Melinda Gates Foundation, meaning that

it could yet see widespread adoption. Fingers

crossed.

As well as increased resistance to disease and

pests, new products and increased nutrients, there

are many other potential benefits to GM products,

namely more efficient processing and enhanced

quality – and perhaps most importantly, increased food security for

the growing population.

Without doubt there are challenges ahead for GM foods, espe-

cially with regard to safety testing and regulations – not to mention

winning over a sceptical public – but can we really afford to ignore a

technology that has such potential for enormous benefits, particu-

larly in the face of a food crisis? I’m not sure we can. �“

“Research into GM foodsis now seen as scientistsplaying God and vilifiedby experts and thegeneral public alike”

Goozee Ed P142:aug08 14/8/08 14:52 Page 142

Food SolutionsFS gives food solutions experts theopportunity to learn how retailers andmanufacturers manage food safety issuesaround the world and to debate on thelatest trends and developments in food.

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CATALOGUE PAGE FS:aug08 14/8/08 13:03 Page 143


FINAL WORDWhy food insecurity is a political issueDr Jacques Diouf, Director-General of the Food and AgricultureOrganisation of the United Nations, says blame for the current foodcrisis lies with governments.

of world markets with the US$372 billion

spent in 2006 on supporting their agricul-

ture; that in a single country food wastage

can amount to US$100 billion annually;

that the excess consumption by the

world’s obese costs US$20 billion annual-

ly (to which must be added indirect costs

of US$100 billion resulting from premature

death and related diseases); and finally

that in 2006 the world spent US$1200 bil-

lion on the purchase of arms.

Against that backdrop, how can we

explain to people of good sense and good

faith that it was not possible to find US$30

billion a year to enable 862 million hungry

people to enjoy the most fundamental of

human rights: the right to food, and thus

the right to life? It is resources of this

order of magnitude that would make it

possible definitively to lay to rest the

spectre of conflicts over food that are

looming on the horizon.

In fact, the problem of food insecurity

is a political one. It is a question of priori-

ties in the face of the most fundamental of

human needs. And it is the choices made

by Governments that determine the alloca-

tion of resources. �

144

The current food crisis goes beyond

the traditional humanitarian dimen-

sion, which has an eminently ethical

foundation. This time it also affects

the developed countries. Rising inflation is 40

to 50 percent the result of higher food prices.

In a context of high and accelerated growth of

gross domestic product of the emerging

countries, we must seek sustainable and vi-

able global solutions that will narrow the gap

between global food supply and demand.

If we do not urgently take the coura-

geous decisions that are required in the pre-

sent circumstances, the restrictive

measures taken by producer countries to

meet the needs of their populations, the im-

pact of climate change and speculation on

futures markets will place the world in a

dangerous situation. Whatever the extent of

their financial reserves, some countries

might not find food to buy.

The structural solution to the problem of

food security in the world lies in increasing

production and productivity in the low-in-

come food-deficit countries. That calls for in-

novative and imaginative solutions, besides aid

for development. Partnership agreements are

needed between countries that have financial re-

sources, management capabilities and tech-

nologies and countries that have land, water and

human resources. Only in this way will it be pos-

sible to assure balanced international relation-

ships for sustainable agricultural development.

The challenges of climate change, bioener-

gy, transboundary animal and plant diseases

and agricultural commodity prices can only be

met through frank dialogue based on objective

analysis devoid of partisan and short-term in-

terests. Yet, obligation to truth already compels

me to note certain facts. Nobody understands

how a carbon market of US$64 billion can be

created in the developed countries to offset

global warming but that no funds can be found

to prevent the annual deforestation of 13 million

hectares, especially in the developing countries

whose tropical forest ecosystems act as carbon

sinks for some 190 giga tonnes.

Nobody understands how US$11-12 billion

dollars in subsidies in 2006 and protective tariff

policies have had the effect of diverting 100 mil-

lion tonnes of cereals from human consumption,

mostly to satisfy a thirst for fuel for vehicles.

Nobody understands how in a time of glob-

alisation of trade that, with the notable excep-

tion of avian influenza that could lead us to

human calamity, there has been no significant

investment in the prevention of Newcastle dis-

ease, foot-and-mouth disease, Rift Valley Fever,

contagious bovine pleuropneumonia, the pest

of small ruminants, bluetongue disease, African

swine fever, tropical bont tick and the New World

Screw-worm, but also wheat stem rust that since

1999 has spread from Uganda to Iran and could

reach India, Pakistan and China, the fruit fly and

finally desert locusts, a scourge familiar since

the time of the Pharaohs.

But above all, nobody understands how

the OECD countries have created a distortion

Dr Jacques Diouf

““In fact, the problemof food insecurity isa political one. It is aquestion of prioritiesin the face of themost fundamental ofhuman needs”

Final Word Ed P144:aug08 14/8/08 14:51 Page 144

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food eu 6

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