FAO Food Price Index drops for 4th month in row; lowest since June 2012

The FAO (UN’s Food and Agriculture Organisation) Food Price Index dropped for the fourth month in a row in August reaching its lowest level since June 2012.

The index, which measures the monthly change in the international prices of a basket of food commodities, averaged 201.8 points in August 2013, nearly 4 points (1.9 per cent) below its July value and 11 points (or 5.1 per cent) less than in August 2012.

Last month's decline was mainly driven by continued falls in the international prices of cereals and oils. Dairy, meat and sugar prices rose slightly.

Steep decline in cereal prices

The FAO Cereal Price Index averaged 210.9 points in August, down 16.4 points (7.2 per cent) from July and 49.4 points (or 19 per cent) from August 2012.

The steep decline reflects expectations for a strong growth in world cereal production this year and, especially, a sharp recovery in maize supplies.

Oils, dairy and meat

The FAO Oils/Fats Price Index averaged 185.5 points in August, 5.7 points (or 3.0 per cent) below the July value and the third consecutive monthly decline.

The FAO Dairy Price Index averaged 239.1 points in August, 2.8 points (1.2 per cent) more than in July and 37 per cent above its level in August last year. Prices increased last month for all the dairy products that make up the index, except butter, as export supplies remain limited in major trading countries.

The FAO Meat Price Index averaged 175.0 points in August, an increase of 2.2 points (1.3 per cent).

Bumper harvest expected

Together with the Food Price Index, FAO released a new forecast of world cereal production in 2013. This is expected to rise to 2 492 million tonne. The forecast has been revised upwards by 14 million tonne (or 0.5 per cent) from the July forecast as a result of higher maize crops officially reported in Argentina and improved prospects in the EU and Ukraine.

At the latest forecast level, global cereal production would be 179 million tonne (7.7 per cent) higher than in 2012 and a new record.

The recovery is predicted to be driven by 10.5 per cent expansion in coarse grain output to 1,285 million tonne as well as a 7.6 per cent rise in wheat production to 710 million tonne.

World rice production is set to increase by 1.3 per cent, reaching a new high of 497 million tonne, in milled equivalent.

US maize production bounces back

The sharp increase in global production of coarse grains in 2013 would be largely on account of a strong rebound in maize output (to 983 million tonne), the bulk of which would originate from the United States, where maize production is forecast to reach 343 million tonne this year, some 25 per cent (69 million tonne) higher than the 2012 drought-reduced level.

Cereal utilisation

Global cereal utilisation in 2013/14 is projected at 2,413 million tonne, down marginally from the previous forecast, but still 3.2 per cent higher than in 2012/13.

Based on the latest forecasts, total use of cereals for direct human consumption is set to expand by 1.2 per cent to 1,094 million tonne. This would result in global per capita cereal consumption remaining steady at just over 152 kg, with wheat at 67 kg and rice at close to 57 kg.

Cereal stocks

The forecast of world cereal stocks at the close of seasons in 2014 has been raised slightly since July, to 569 million tonne, primarily on expectations of higher maize inventories. The revised forecast puts world cereal stocks 13 per cent (65.5 million tonne) above their low opening levels and at their highest since 2001/02.

Based on the current projections of overall demand, the increase in stocks would drive up the global stock-to-use ratio to 23.3 per cent, the highest since 2002/03.

"The overall supply-demand situation for cereal markets is much improved over this time last year when drought-hit production and low stock-to-use ratios, especially for maize, raised serious concerns," said David Hallam, director of FAO's Trade and Markets Division. "Production is expected to rebound sharply and higher stock-to-use ratios should bring greater stability to world markets."

Chobani, Inc. issues voluntary recall of yoghurt over mould growth fears

US company Chobani, Inc. has issued a voluntary recall for a small quantity of product – yoghurt - produced at the company’s Idaho facility. Over 95% of the units in question have already been identified and removed from retailer shelves.

According to a press release issued by the company, the Voluntary Recall Product Information is thus: Code: 16-012 and Best By: 9/11/2013 – 10/7/ 2013. No other products are involved in the recall, it added.

The company stated that it began a proactive and voluntary withdrawal of product, after learning that small quantity had been affected by a type of mould commonly found in the dairy environment. While this type of mould is unlikely to have ill-health effects, due to some claims of illness the company has decided to go from voluntarily withdrawing to voluntarily recalling the limited amount of potentially affected product.

With focus on trends in food processing, Foodpro records good response

Foodpro 2013, the food processing industry and related technologies show, held in Chennai recently, saw an overwhelming response from participants and visitors, according to a post-event press release issued by the organisers.

With over 150 exhibitors, the show witnessed participation from Australia, China, Denmark, Germany, Italy, South Korea, Sweden and the UK.

One of the exhibitors, Sathish Kumar, managing partner, EssEMM Corporation, observed, “Events like Foodpro help in educating and creating awareness amongst end-consumers about various developments and advancements in the food processing industry. Although there is a slowdown but the industry is still expected to grow at an average of 15-20% every year, which means this growth would be doubled in the next 5 years. The growth depends on the agriculture output for which the agriculture sector needs to stabilise first; raw material should be procured for achieving higher growth rate. It is also important that we promote more of green automation, which could help in also promoting green technology and sustain the ecological balance.”

Joseph R Kishore, president & CEO, USP Packaging Solutions Pvt. Ltd, stated, “Food processing industry requires more opportunities to be tapped. Packaging industry globally is growing at a rapid rate. Hence it’s important that we constantly evolve and innovate the packaging space. Food processing industry is not much affected by the slowdown as it is the basic necessity for end- consumer. Industry wants government to take initiatives to control dollar exchange rate, which help in controlling food prices and generate demand. There is a need to promote more ready-to-eat food segment as there is lot of demand for this sector, especially amongst the working community.”

A Praveen Kumar, head, business development, Sowbhagya, said, “Certainly slowdown has affected the industry but still there is light at the end of the tunnel. This is not going to be lasting for too long. If we have more products introduced we shall see more demand and growth in the sector. This demand can be matched up if we have more new restaurants coming up which would help in selling of more food processing equipments.”

The event focussed on the current trends in the food processing industry, showcased innovation through modern technology and provided a unique platform to network and explore new business opportunities in the food and related sectors. It also provided an opportunity for exhibitors to identify new customers, retailers and distributors of products and services related to food processing.

Aahar 2013 kicks off in Bengaluru; AIFPA seminar on food processing tech

Aahar 2013, Bengaluru, the regional version of Aahar International Food & Hospitality Fair, popularly known as mini Aahar, kicked off at KTPO Complex here on Thursday.

Various sessions and events are being held as part of the three-day show. As part of the programmes, the All India Food Processors Association (AIFPA) is conducting a seminar on “Emerging Technologies in Food Processing” in collaboration with the ministry of food processing industries (MoFPI) on Saturday.

The seminar will comprise an Inaugural Session and two Technical Sessions wherein food scientists and technologists of eminence will be presenting papers on various topics relating to the main theme.

FDA unfamiliar dept due to officials' apathy during PFA, states Zagade

While the common man is not aware of every other law-enforcing agency, they are not familiar with the Food and Drug Administration (FDA), according to Mahesh Zagade, commissioner, FDA Maharashtra. He attributed this to the lack of interest shown by officials when the Prevention of Food Adulteration (PFA) Act, 1954 – which preceded the Food Safety and Standards Act (FSSA), 2006 – was in place.

Addressing reporters at an interactive session on the role played by the food regulator in the life of the common man in Mumbai on Friday, Zagade said, “FDA has a role to play at every stage in the common man's life, from farm to plate. We start our day by brushing our teeth. The toothpaste we use contains edible ingredients. From the tea we drink to the food we eat, everything contains food.”

“However, the common man is not aware of what he or she is consuming, and whether it is safe for  him or her. While everyone knows the names of police officers, advocates, doctors, vegetable vendors, milk vendors and newspaper vendors, there is very little awareness about the food safety officers (FSOs) in a vicinity,” he added. 

Zagade said, “I have been state FDA commissioner for over two years now, but I have not faced pressure from any political party to date. Now, I have also permitted the food safety officers (FSOs) to organise press conferences in order to make people aware about the importance of the Food and Drug Administration (FDA) and their role in safeguarding the health of the 11 crore people that inhabit the state.”

When quizzed about the completion of the licensing and registration process before the February 4, 2014 deadline, he said, “We have sought the help of a non-governmental organisation (NGO). Although festivals and elections are round the corner, we will pool in our limited resources and complete the licensing and registration before the stipulated deadline. According to the Central database, Maharashtra leads the way as far as licensing and registration is concerned, with a combined figure of 3,90,000.”

Adulterated tea swamps Karur

Sale of adulterated tea at roadside shops is enjoying an unbridled run in Karur despite the clutch of law in force to prevent sale of spurious and harmful food items.

``One could see, even before tasting, the adulterated tea being served in roadside shops to gullible customers. The pale yellow colour of the hot liquid served in the glass in Karur shops is clearly distinguishable from the dark brownish original tea colour even in third extraction. “We have lost hope in the officials responsible for monitoring the products in the town limits,” bemoans manufacturing technocrat A. Vidya Sundar of Sakthi Nagar. Consumption of adulterated tea leads to damage of liver and intestine, pharmaceutical sales professional K.Narayanan said.

Stomach ailment for many a travelling professional is mostly due to consumption of spurious or adulterated products and food items, he adds. Common ailments such as gastric ulcer, diarrhoea, continued reflux oesophagitis are caused by food poisoning, Mr.Narayanan adds. ``The food safety officials must be given more teeth and powers to deal with errant traders and tea stall owners. Only strict action, including penal and financial punitive measures, could ensure that the unscrupulous elements playing havoc with the public health be kept under check, ,’’ points out consumer activist S.Gopalan, chairman, Consumer Protection Council.

Unlabelled honey seized by FDA

Continuing their aggressive drive against substandard foodstuff, food safety officers on Thursday seized 30 litres of honey from vendors around the Kadamba bus stand in Margao.

With honey in demand for use in sweets and as part of the offering for Ganesh pooja, the state Food and Drug Authority has been keeping an eye for spurious produce. The confiscated honey was unlabelled and suspected to be adulterated. The seizure was valued at over 9,000.

The officers also conducted surprise inspections of godowns stocking fruits in Salcete taluka, to check for artificial ripening and chemical contamination. The officers collected samples for analysis, a statement from FDA said

IIT-M students protest poor quality of canteens

The students said the food was sub-standard in the six messes of the institute, all of which are managed by private caterers —Photo: M. Karunakaran

Nearly 800 students of IIT–Madras protested outside their mess on Friday against the low quality of food served in the messes of the institute.

The students said they had taken up the matter with the administration on several occasions but there had been no improvement in the quality of the food.

“Earlier, we would at least get one banana or a slice of watermelon every day. Now, we have to pay extra for anything nutritious — boiled eggs, all fruits, paneer and chicken. The available food is very sub-standard,” said a student.

The situation prevails in the six messes of the institute, all of which were managed by private caterers, students said.

“We spend nearly Rs. 80 on food every day. However, the food items are stocked up in a very unhygienic way. The dishes are never cleaned properly,” another student said.

The students said they had repeatedly written to the administration about the issue. Many students had also staged a protest last year but no action had been taken, they said.

They said the student-managed messes in IIT-Kanpur and IIT-Bombay served larger quantities of food of a better quality and at comparable prices. “However, here they are under the administration, which outsources it to caterers. It is high time the administration listened to us,” said a student.

During the course of the protest, the students marched up to IIT-M director Bhaskar Ramamurthi’s house. In a discussion that lasted till midnight, the director responded to the questions raised by the students.  

A senior professor at the institute said rising prices were one of the reasons for the dip in the quality of food, but denied that it was in any way sub-standard.

IIT-M officials said the menu had been fixed when the tenders were floated a couple of months ago, and it was difficult to change it.

 “We have always taken students’ feedback and complaints seriously. We will certainly look at improving the quality of the food,” a professor said.

Health Min turns a blind eye to food safety

On one hand, the Government went overboard in pushing its Food Security Bill but on the other, the Health Ministry has turned a blind eye to safety of food - if one goes by the composition of the 15-member Food Authority , the highest decision making body of the Food Safety and Standard Authority of India (FSSAI).

A look at the profile of many members nominated in the Food Authority shows that major sectors related to fruits, vegetables, vegetable oil and farm output of food grains have been largely ignored. The large meat and bakery/ confectionery sector too has been ignored. Instead, a representative from the not so voluminous prawn industry, one Balasubramanium has been reappointed.

Moreover, despite Supreme Court’s strictures, the Ministry has appointed two members namely Gurudayal Tuteja and Lalitha Ramakrishna Gowda, who have conflict of interest. Gowda and Tuteja are already on the scientific panel of the FSSAI. As per rules, they cannot be appointed in two panels of the food regulator.

Also, the Ministry has nominated a member, Shreya Pandey, who is associated with a beverage MNC, as a representative of the All India Food Processors, as per the notification issued by the Ministry.

“The Supreme Court has in 2011 passed strictures to the Food regulator to reconstitute the scientific panel and have independent scientific persons and not individuals who have conflict of interest. But this time it has bent the rules while constituting the Food Authority,” said Santosh Kumar Mishra from Lok Jagriti, which has filed a case in High Court against the ‘mis-governance and mismanagement’ in the FSSAI.

Mishra said that Pandey has been nominated as an industry member despite her company not agreeing to the report of the Joint Parliamentary Committee on carbonated drinks.  When asked, Joint Secretary (Health Ministry), AK Panda said, he would look into the matter.

The appointment of K Chandramouli as chairperson of the FSSAI is already under the scanner of the Supreme Court with a PIL alleging that he did not fulfill the eligibility criteria for the post as desired under Section 5 of the FSS Act.  The Supreme Court has issued a notice to the Government in the matter.

1,000 samples of every food item to be tested across State in view of Onam

Food safety inspections will be made more stringent as it has come to the notice of the Health Department that adulterated or substandard food items are increasingly reaching the State from across the border with the start of the festive season.

Special squads of the Food Safety wing have started inspections across the State as part of a pre-festival drive to ensure food safety. The officials have started testing samples of coconut oil coming through check-posts following widespread complaints that engine oil, converted into white oil, was being used to adulterate coconut oil. A private firm at Palakkad was closed down by the food safety officials on Tuesday in this connection.

Testing of samples of milk has been made stringent as increased quantities of milk will be brought into the State in view of the festival season. During the last Onam season, the Food Safety wing had detected widespread use of formalin to preserve milk.

Steps have been taken to collect statutory samples of ghee, jaggery, chilli powder, fruits, vegetables, payasam mix, pickles, meat, and cashew nut and send these for lab testing.

The services of laboratories in universities and other government enterprises will be utilised for testing the food samples.

In a State-wide intensive food safety drive being launched on Thursday, over 1,000 samples of every food item will be tested across the State. This is the first time since the inception of the Food Safety wing that such a widespread food safety inspection is being held, an official release said.