Feature: Calculating the Cost of Food Quality

As the old saying goes, “buy cheap, buy twice”. We’ve all been in a situation where we opted for a less expensive product only to regret it later due to it falling apart earlier than expected, or requiring costly upkeep. Making a purchasing decision solely on the price tag of the product in front of you is never a good idea and nowhere is this truer than when selecting a product inspection machine for your food processing line.

To comply with safety regulations in the food industry as well as metrology legislation, it is critical to make use of product inspection systems, such as metal detectors, checkweighers or x-ray inspection equipment. These technologies are vital for identifying and rejecting products contaminated with foreign bodies, including metal, glass or stone, instances of over- or underweight products, and packs with broken or misshapen components. However, selecting the wrong product inspection equipment for your line can add unnecessary expense through maintenance, wasted product or increased downtime while also putting your ability to comply with regulations at risk.

It is important that, prior to taking that financial plunge, you ask yourself, “What are the costs to my processing line of this product inspection machine? What are the benefits”? To facilitate this decision, we’ve compiled a simple checklist of issues to be taken into consideration when calculating the benefits of your product inspection system.

Does it meet the needs of your production line?
Before making a purchasing decision regarding new product inspection equipment, it is important for you to consider the needs of your line. Do you require a machine to detect metal or glass, or other physical contaminants? Is product weight a principal concern? Are you having issues with missing or broken components in your finished packs?

If the first is the biggest challenge for your production line, you should consider a metal detector or x-ray inspection system. A checkweigher would be the most suitable technology for the inspection of product weight, while an x-ray system would be ideal for overcoming the third challenge. You may require a range of product inspection equipment on your line to comply with industry safety standards, such as the British Retail Consortium (BRC) Global Standards, or legislation including the UK’s 1985 Weights and Measures Act, while ensuring other quality parameters are met.

To determine the needs of your line regarding contaminant detection and guarantee that the correct investment is being made, be sure to undertake a comprehensive Hazard Analysis and Critical Control Points (HACCP) audit of your manufacturing processes. This is an in-depth study that forms the basis of many food safety standards, including BRC Global Standards and other Global Food Safety Initiative (GFSI) approved guidelines. It helps you identify the points in your processes most vulnerable to contamination as well as the most likely forms of contamination that will occur. For example, if the principal contaminant threat is from metal fragments, then a metal detector would be the ideal technology to invest in. If glass shards or bones or stones are more likely, then an x-ray inspection system would be more suitable.

As well as deciding what the most suitable technology will be for your production line, you should look at which other features you might need to ensure compliance with food safety and quality standards. Product inspection systems with due diligence enhancements, such as lockable reject bins and HMIs accessible only using a high-security password, for example, can eliminate the risk of tampering that can result in rejected products being replaced on the processing line or in unauthorised adjustments to the machine’s operating settings. Some product inspection systems are capable of storing records of login attempts to help you to identify when access to the system has been attempted and by whom. It is important to identify the control and security needs of your processing line by researching the requirements of the safety regulations to which you must comply.

How does the cost of installation weigh against the savings?
On top of the machine’s initial price tag, it is important to take into account the installation costs. These include production downtime due to integration of the new technology and the cost of engineering time for set up. You should take into account the disposal of the old equipment, and the time spent training staff to ensure they understand and can operate the new system.

Be sure you have selected product inspection equipment that is easy to install on existing lines. Machines that have a small footprint or combination systems, such as those featuring metal detection and checkweighing, can be integrated simply into processing lines with restricted space. Metal detection systems with Internal Cancellation Field (ICF) technology can be located next to other machinery without compromising detection sensitivity, further facilitating installation.

Pay attention to the nature of the Human Machine Interface (HMI) of the product inspection system you are considering. Features such as digital touchscreens and intuitive software can make the technology much more straightforward for your staff to use, minimising training time and expense. They can also simplify the setup of the new technology for your production line, saving you time and allowing your line to return to production as quickly as possible.

What are the perks of precision?
Is the product inspection system sensitive enough? Inspection precision can have a major impact on your production line, not just enhancing detection capability for physical contaminants, but enabling you to minimise costly product waste.

The installation of a more sensitive metal detector or x-ray inspection system than alternative solutions can minimise costly false rejects where compliant product is inaccurately deemed non-confirming.  It can also eliminate the threat of false positives, which are contaminated products that pass undetected through the processing line, and therefore decrease the likelihood of an expensive product recall with the financial sanctions and damage to reputation that can result. Metal detectors or x-ray inspection systems that are more sensitive than alternatives can ensure you detect ever smaller foreign bodies in your products, maximising consumer safety.

Consider a line processing 100 packs per minute, operating for 20 hours per day, 250 days a year. The typical cost per pack is €1. If a standard metal detector has a false reject rate of 1 pack per 5000, then as many as 6000 packs per year will be wrongly removed from the line, wasting some €6000 each year, in addition to the time and expense of reworking the product. However, if you choose a more sensitive metal detector, with a reject rate of just 1 pack per 10 000 packs, then your line will have a false reject rate of just 3000 packs per year, with a saving of €3000.

By installing a checkweigher on your line, you can identify instances of product under- and overfill. This not only enables you to comply with weights and measures legislation, it can help you save money from wasted product given away in overfilled packs that can be removed from production and reworked.

Imagine that a processing line fills 20 cans per minute.  Production occurs in three seven-hour shifts, 230 days per year.  If an average overfill of 10 grams per can was found and the costs for the content of the can amounts to €0.0001 per gram, this results in €5,796 loss per year.  By using a checkweigher to identify this overfill, the line could regain much of this lost profit every year. If you invest in a more sensitive checkweigher, able to measure weight with greater accuracy than alternative systems, you can set it to tighter tolerances to catch even minor instances of product overfill so you can reduce waste. If you are able to reduce average overfill to just 5 grams, for example, you would save €2,898 each year.

Additional checkweighing features, such as feedback control, can also result in financial gain. This innovative technology connects with the filling machines earlier in the production line and controls their output based on data from the checkweighing system. It automatically reduces or increases portion sizes according to weighing information in real time, minimising expensive product overfill.

What about the spare parts?
Have you considered the availability of spare parts for the product inspection equipment you intend to purchase? Will your machine require extensive maintenance in the coming years? The robustness of the technology should be evaluated as maintenance and repair can impact the total cost of owning any machine.

Machines designed to operate in humid conditions and withstand harsh wash-down regimes have low maintenance needs for optimum performance. Check the Ingress Protection (IP) rating of the product inspection machine to ensure it is able to withstand the humidity and chemical environment of your production line. Features such as granulate conveyor systems with extra wide belts and mechanism casings milled from a single block of plastic can protect the conveyor motors and rollers from the damaging effects of ingress of granular or particulate products, such as salt or sugar. These can lead to premature corrosion or increase friction between components, increasing maintenance requirements.

Speak to your supplier to determine the availability of any necessary spare parts. Product inspection systems with non-standard central processing units (CPUs) may be more difficult and more expensive to maintain, as the spare parts for the CPU may be harder to source. It’s ideal to select a product inspection equipment supplier with a reputation for short lead times on spare components to minimise downtime.

A machine fit for the future?
Also consider the flexibility of the product inspection system. Food safety standards are not static but rather constantly change to protect consumer wellbeing. It is important that the product inspection system can adapt to potential changes to industry guidelines without significant expenditure.

Look for product inspection systems capable of enhancing production line flexibility. Features such as easy-to-use HMIs with stored or variable product setup configurations can facilitate changeover of the processing line to new products, allowing you to respond more quickly to fluctuating market demand. Opt for metal detectors that make use of Variable Frequency Technology, which automatically selects the optimum detection frequency for the product to be inspected, overcoming the “product effect” or electrical signal created by wet or conductive products without compromising detection sensitivity. They can be set up for a potentially unlimited number of product changeovers, enabling you to process limited and seasonal product runs with productivity in mind.

Select product inspection systems from product inspection equipment suppliers that offer vision inspection and serialisation technology. This will enable you to adapt quickly to changes in food safety regulations that require traceability of products. Vision inspection systems are capable of examining information on pack labels, including pack weight, price and ingredient information and can track packs as they pass to the cartoning stage to palletisation to the transport that will take them to retailers. Such technology can enhance control over the production line, allowing you to demonstrate due diligence in the event of a product recall and protecting your brand’s reputation.

A reliable supplier?
Above all, it is vital you assess the reputation of your product inspection equipment partner before making the final decision regarding any new technology. A supplier known for quality and able to offer guidance at every stage will be best placed to help you find the most suitable solution for your needs.

Evaluate the service offering from the supplier. They should provide expert engineers to install and set up the new product inspection system as well as train line operatives. Suppliers with remote service support can monitor the performance of your equipment in real time, ensuring your product inspection system always operates at peak performance.

A strong and trusted supplier will act as a partner, ensuring your product inspection technology supports and enhances the performance of your processing line. This will not only help you comply with global food safety standards, it will enable you to enhance production efficiency, reduce product waste and save money.

A checklist for quality
Selecting your new product inspection system can be daunting. It is important to remember that your technology choice will determine not only whether you comply with regulations, but also whether you save money and protect your profit margins. When shopping around for your new processing line machinery, be sure to consult this checklist to help you calculate the benefit and potential costs to your production line.
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About the author
Neil Giles is Marketing Communications Manager at the Mettler-Toledo Product Inspection Division of Mettler-Toledo, based in the UK. He currently specialises across all four main product inspection technologies, which are x-ray, metal detection, vision inspection, Pharmacontrol Electronic GmbH (PCE) and checkweighing. A member of the Chartered Institute of Marketing, he has over 20 years of experience in the food and pharmaceutical industries and has extensive knowledge of equipment for the packaging, process weighing and inspection sectors.

About Mettler-Toledo Product Inspection
Mettler-Toledo Safeline is the world’s leading supplier of metal detection and x-ray inspection solutions for the food and pharmaceutical industries. Together with Garvens Checkweighing, CI-Vision and Pharmacontrol Electronic GmbH (PCE), Mettler-Toledo Safeline forms the Product Inspection division of Mettler-Toledo.

Mettler-Toledo develops, produces and markets precision instruments worldwide. The company is one of the largest suppliers of weighing and quality control systems in the world, whose products are used in laboratories as well as industrial processing and food retailing applications. Renowned producers of all conceivable everyday products rely on Mettler-Toledo's technology as an important aid to delivering consistent product quality and innovative developments. These producers reap the benefits of the company's global presence and sales and service network.

Mettler-Toledo's corporate philosophy centres around high-quality standard and tailored solutions. The company forms a true partnership with its customers providing support during the selection of appropriate systems and working together to develop unique solutions which increase process efficiency, reduce overall manufacturing costs and improve competitiveness.

(The writer is Marketing and Communications Manager, Mettler-Toledo Product Inspection Division)

More needs to be done to curb climate-change effect on food yield: FAO

With the consequences of climate change for the world's food production systems becoming increasingly clear, more needs to be done to capitalise on agriculture's potential to mitigate global warming, says a new FAO (UN’s Food and Agriculture Organisation) Guidance Document—National Planning for GHG Mitigation in Agriculture—published on Tuesday.

Agriculture is directly responsible for over 10 per cent of all human-caused greenhouse gas (GHG) emissions, FAO figures show. But improved farming practices offer the possibility of reducing those emissions and sequestering atmospheric carbon, while at the same time increasing the resilience of production systems, says the document, published by FAO's Mitigation of Climate Change in Agriculture Programme (MICCA).

Yet progress in drawing up agricultural GHG mitigation plans — as well as in allocating financing to climate change projects in the agriculture sector — is falling short of what is needed, cautions FAO.

The document aims to help address these shortfalls by providing step-wise advice and examples of national planning for GHG mitigation in food production systems, as well as highlighting opportunities for developing countries to secure climate financing for agriculture.

Examples from existing mitigation planning processes in developing countries illustrate options for addressing key planning elements in country-specific ways, and approaches to involving smallholder farmers in the planning process are highlighted as well.

Key steps, guiding principles

Although opportunities and planning processes will vary from country to country based on local circumstances, a number of general principals hold true, according to FAO.

First, mitigation actions in agriculture should be pursued within the context supporting agricultural development and food security, with planners clarifying from the start how mitigation can contribute to national development goals.

Participatory planning and cross-sectoral cooperation will be important to the success of mitigation plans, adds the report. Farmers and other stakeholders should be involved in setting objectives, actions and targets, both to generate support for and to improve the effectiveness of planned policies.

To access international and domestic financing, plans should be very specific regarding how to assess the mitigation potential of proposed policies and measures. Sound systems for measuring the impacts of policies and reporting other performance metrics are also necessary when seeking financing for projects.

Another key step is to identify the barriers that impede adoption of mitigation practices by farmers. Many agricultural practices that can mitigate climate change are already widely known — effective policies need to identify why farmers may not be adapting them, work to remove barriers, and facilitate their wider use.

Also crucial: determining how mitigation policies and measures will be financed.

Some countries are supporting agricultural mitigation activities primarily through domestic fiscal budget lines and policies that leverage private investment, the report notes. For many countries, however, an important goal of mitigation planning is to attract international financial support, in order to match the priorities of international climate finance institutions to specific parts of domestic mitigation plans.

Recipe for Success: Courage key to sustain in the business: Bangs' CEO

Higher studies and international degrees do not necessarily make a successful businessman, but a passion for business does. That is the lesson learnt from the success story of Asvin Simon, chief executive officer, Bangs, a Chennai-based fried chicken brand.

Bangs currently operates 40 outlets across India with 400 employees working for it. The company  started with a small kiosk covering an area of just 80sq ft, and now has a presence in over thirteen states, including Tamil Nadu.

The others are Andhra Pradesh, Bihar, Delhi, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Karnataka, Maharashtra, Madhya Pradesh, Punjab and Uttar Pradesh. The chain also operates 40-plus outlets overseas. These outlets are a mix of three types of formats – restaurant, kiosk and express.

Simon, a software  engineer by qualification, started the first Bangs outlet in the year 2009, and now plans to open 500 outlets  across the country. He stated his plans for the next five years, of which 100 will be company-owned, while the others will be franchise outlets.

The company will be targeting the metropolitan cities and mini-metros. Bangs also plans to raise Rs 30 crore via private equity to set up its company-owned outlets.

When quizzed about his choice of an off-beat career, Simon said, “Studying and getting a white-collar job was something I was never interested in. I never wanted to work under anyone. Instead, I always dreamt of running my business. After all, it was in my blood, as my father himself is the successful businessman into imports and exports and shipments, and I enjoyed assisting him.”

“Venturing into an altogether new business was not an easy job despite coming from a business background. Getting the approval and support of the family was the first challenge. They eagerly wanted me to stick to education career of a software engineer.  So the first thing I did was setting up an small information technology company in 2007, which would provide a side income for me for my other dream at the same time making my family happy,” he said.

Simon then shifted his focus to setting up Bangs. “Here started the original challenge of starting a venture in a new venture sector (food). It took almost a year to do groundwork about the segment, right from making a perfect recipe to finding the right target audience (including the demographic it would be catering to). Finally, the first outlet in 2009, when I was 23,” he said.

“The investment for the first kiosk was Rs 5,00,000. I had the support of my parents, relatives and friends. But, it is just not the money that makes a business work successfully. A clear vision and future outlook is also needed. Even before I started my first kiosk, I had a clear picture and plan about where my business would be in next five years,” Simon said.

Talking about his strengths, he said, “One has to be courageous and a brave-heart to sustain in the business. Also, a clear vision is a must, but along with it one has to be flexible. For instance, when catering to the tastes of customers in the north, I have to be flexible in my offerings and setting up outlets. The strategies used for setting up outlets in the south are completely different from those in the north. Even the consumers' preferences for food items is different. So one has to trust his/her ability while running the business.”

Today, Asvin is on an expansion spree. He plans to expand his network by entering into the overseas market. The company will open three outlets in Qatar by the end of the year and more in Malaysia and Dubai the following year.

Wagh Bakri launches monsoon special for tea lovers in Mumbai and Delhi

Wagh Bakri Tea Group has launched monsoon deals for tea aficionados at their tea lounges in Mumbai and Delhi. The brew will be accompanied by a variety of snacks. There are a number of tea variants to choose from, including Assam tea, healthy organic tea, green tea, Darjeeling tea, iced tea and flavoured tea.

The Rs 750 crore group, which distributes over 30 million kg of tea, forayed into the retail category with its tea lounges, which opened in Mumbai in 2008 and in Delhi in 2011. Tea aficonados can taste the brew before ordering it at these establishments, aimed at the creation of a tea-drinking culture.

Lower yield, poor rainfall reasons for onion price hike in Maharashtra

The wholesale price of onions has risen to Rs 25 per kg in Maharashtra, and the reasons for it are the lower yield and the scanty rainfall the state received last year. The hike in the price of the vegetable is expected to continue till the end of August.

While the ministry of consumer affairs, food and public distribution and the ministry of commerce are mulling over a short-term ban on onion exports to bring down its domestic prices, agriculture minister Sharad Pawar is not in favour of such a ban. He opined that this is a short-term price hike.

Ashok Walunj, director, onion-potato market, Agricultural Produce Marketing Committee (APMC), said, “Due to the poor rainfall received by Maharashtra last year, the production of crops was less, and that is the reason for the onion price hike.”

“The hike in the wholesale price of onions is not as high as that of other vegetables. Moreover, it will continue the end of August, and the price will begin to decline from September, when the farmers start sowing other crops. If the retailers fix higher prices, it is not our problem,” he said.

Gutka companies get a kick by subverting the ban

Companies sell tobacco-less pan masala and tobacco separately, claiming that chewable tobacco is not a food product.

They are selling tobacco-less pan masala and sachets of tobacco separately

While gutka in its known form may be banned, its seemingly legal derivatives are still freely available. A multitude of colourful sachets hang in shops, and business is usual for shopkeepers. Although, the only difference though is that for a gutka-like kick one needs to buy multiple products. “We no longer supply gutka. But you can mix these two,” said a shopkeeper in Assaigoli on the outskirts of the city, pointing to two different coloured sachets.

Though the government has banned the sale and making of gutka and pan masala that contain tobacco or nicotine under the Food Safety and Standards (Prohibition and Restrictions on Sales) Regulations, 2011, on May 31, companies subvert the ban by selling tobacco-less pan masala and sachets of tobacco separately.

For Rs. 2, customers buy pan masala (with no tobacco, no nicotine printed clearly) and a small sachet of tobacco. Contents of the two are crushed between the palms, mixed well and then chewed. “The taste is terrible. But you get used to it,” said an autorickshaw driver, who was buying two such sachets in Bendoorwell here.

Though the sale of products such as these has reduced by half since the ban, Chandra, a shopkeeper in Marnamikatte, said many resorted to buying tobacco separately. “At least 40 per cent of the customers buy sachets of pan masala and chewing tobacco… The ban is not effective unless chewing tobacco itself is banned.”

The sale of chewable tobacco exploits a loophole in the wording of the Section 2.3.4 of the Regulation, which prohibits addition of tobacco to food, said Vishal Rao, Director, Cancer Prevention and Tobacco Control Project, Institute of Public Health, Bangalore.

“This is a billion dollar industry that is looking at all the ways to flout the law. They claim chewable tobacco is not a food product. This is a technicality, and States are still waiting for a Supreme Court clarification on this,” he said.

He said creating multiple names – Chaini, Zarda, among others – instead of labelling it as gutka was another way to create an “atmosphere of confusion” to circumvent the ban.

While claiming that gutka is not freely available in the district, B.V. Rajesh, Food Safety Officer, said that without a government order, they could not stop the sale of either pan masala or chewable tobacco.

Assam govt, CII to form joint Task Force with food processing on agenda

Assam government will be partnering with CII for overall economic development of the state and to facilitate initiatives that will catalyse grassroots level development. This was revealed by S Gopalakrishnan, president, CII (Confederation of Indian Industry), and co-founder & executive VC, Infosys Ltd, while on a visit to the state recently.

In this regard, the state government and CII will constitute a joint Task Force to work on a 5-point agenda for development of the region. The agenda will include boosting food processing including enabling the tea industry to move up the value chain, initiating skill development and growth of the IT industry, enhancing MSME competitiveness through capacity building, and facilitating healthcare delivery.

To enhance the competitiveness of the MSME sector in the state, CII through its Centre of Excellence for Competitiveness will work with the state government for cluster development programmes in the state. This would be done for the companies operating out of Industrial estates in a phased manner.

FAO launches e-books with food, agriculture, hunger eradication titles

FAO has launched its first e-books, featuring best-selling titles from the world of food, agriculture and hunger eradication.

For now, the first titles are available for free download in formats compatible with major e-readers and tablets (iPad, Kindle, Kobo, Nook, Sony Reader and others) at FAO’s (UN’s Food and Agriculture Organisation) publications page.

More free publications will be uploaded during a pilot phase that will continue until later this year. Eventually, the books will be available from e-book stores.

"Offering selected titles in the increasingly popular e-book format is an important step forward," said Rachel Tucker, FAO acting publishing chief. "FAO's wealth of information on food, agriculture and hunger eradication will now be available in a format requested by a growing number of our audiences."

FAO's first e-books are available in English with other languages to follow.

Review by EFSA concludes diet is major source for BPA; Feedback sought

EFSA’s scientific experts have provisionally concluded that for all population groups diet is the major source of exposure to bisphenol A (BPA) and exposure is lower than previously estimated by EFSA (European Food Safety Authority).

According to a press note issued by EFSA on Thursday, BPA is a chemical compound used in food contact materials such as packaging as well as in other consumer products.
This is the Authority’s first review of exposure to BPA since 2006 and the first to cover both dietary and non-dietary sources (including thermal paper and environmental sources such as air and dust).
As part of a two-stage process of its full risk assessment, EFSA is now seeking feedback on this draft assessment of consumer exposure to BPA. During a later phase, EFSA will publicly consult on the second part of its draft opinion, focussing on its assessment of the potential human health risks of BPA.
New data resulting from an EFSA call for data led to a considerable refinement of exposure estimates compared to 2006. For infants and toddlers (aged 6 months-3 years) average exposure from the diet is estimated to amount to 375 nanogram per kilogram of body weight per day (ng/kg bw/day) whereas for the population above 18 years of age (including women of child-bearing age) the figure is up to 132 ng/kg bw/day. By comparison, these estimates are less than 1% of the current Tolerable Daily Intake (TDI) for BPA (0.05 milligram/kg bw/day) established by EFSA in 2006.
For all population groups above three years of age thermal paper was the second most important source of BPA after the diet (potentially accounting for up to 15% of total exposure in some population groups).
Among other key findings, scientists found dietary exposure to BPA to be the highest among children aged three to 10 (explainable by their higher food consumption on a body weight basis). Canned food and non-canned meat and meat products were identified as major contributors to dietary BPA exposure for all age groups.
Scientific approach
To derive these exposure estimates, experts on EFSA’s Scientific Panel on Food Contact Materials, Enzymes, Flavourings and Processing Aids (CEF Panel) applied two approaches: exposure modelling and analysis of human biomonitoring data (from urine samples).
•    Exposure modelling involves the assessment of exposure to BPA through food and non-food sources (thermal paper, air, dust, toys, cosmetics, dental sealants) and routes (diet, inhalation and skin contact) in the EU population. This method allows for the estimation of exposure from all sources, which could be identified and quantified individually.
•    Urinary biomonitoring data (that is, levels of BPA found in the urine) were used to corroborate the Panel’s estimates of overall BPA exposure and to ensure no major source of exposure was missed.
The Panel’s draft opinion includes analysis of possible uncertainties in the exposure assessment. The estimates of dietary exposure based on the data on occurrence of BPA in food and EFSA’s Comprehensive European Food Consumption Database are considered robust. However, there are uncertainties regarding exposure from thermal paper and more data are needed especially related to BPA skin absorption and cash receipt handling habits in order to provide a refined estimate of exposure through this source.

Public consultation and ongoing work
All stakeholders and interested parties will be able to provide their comments on the draft exposure assessment from July 25 to September 15, 2013. EFSA decided on a two-stage public consultation in the interests of transparency and in line with the Authority’s willingness to consult with all stakeholders before conclusion of its full risk assessment.

Online food licensing and regn faces manpower & infrastructure hurdles

Even technology has failed to speed up the snail-paced licensing and registration of FBOs procedure being undertaken across the country under the Food Safety & Standards (Licensing and Registration of Food Businesses) Regulations, 2011.

That is because, fraught with glitches like lack of tech-savvy users and officials and inadequate infrastructure – software, hardware and manpower - the online version of the procedure, which meant the entire process will be completed in a few minutes at the click of a few buttons, has failed to gather steam in most parts of the country where it has been launched in recent times.

While the above-mentioned glitches are a matter of grave concern for now, they are also likely to impact the Food Safety and Standards Authority of India’s (FSSAI) goal of completing the licensing and registration procedure in the country before the deadline – February 4, 2014 – be it manual or online. Interestingly, the deadline has been extended by the Authority twice earlier.

To know the current scenario, let us take a look at Goa. The tiny state commenced the process of licensing and registration online on January 31, 2012. Jyoti J Sardessai, deputy director, Food and Drug Administration (FDA) for the South Goa district, said, “Most food business operators across the state prefer offline application.”

This was confirmed by a source in the district FDA, who added that online licensing and registration constitutes 30 per cent, while offline licensing and registration accounts for the remainder.

He said, “Adequate infrastructure has not been created for citizen-centric centres (for instance, cyber-cafes, which charge exorbitant rates). Another hurdle the online system faces in Goa is that most FBOs are not too tech-savvy.”

“We have recently appointed four data entry operators, who upload the information about applications received – both online and offline – from FBOs in the state's two districts (North Goa and South Goa) onto a database,” the official informed.

“Establishments with larger premises and more staff opt for online licensing and registration,” he added.

Software glitches

The online licensing and registration process first started about two years ago. But the software for the same, though developed with a great deal of fanfare and trials, was not upto the mark. While efforts were made to rectify the weak areas, users still found some glitches.

Maharashtra

Maharashtra was the first to start the online licensing and registration. Till date, 3 lakh FBOs across the western state have either registered or obtained licences. Yet, 90 per cent of the registration and licensing has taken place offline, and the remainder online.

Haryana & Chandigarh

Haryana also started the online registration for FBOs on March 22 2013. Chandigarh, the capital of the state (as well as that of Punjab), became the first Union Territory recently to introduce the online food licensing and registration system (FLRS) to facilitate food business operators (FBOs) to file and track their applications.

Tamil Nadu & Kerala

The total number of licenses issued by and FBOs registered in Tamil Nadu so far is 1,85,000, all of which are offline. The online process recently commenced in Madurai district. The number of FBOs who have either obtained a license or registered – all offline – across Kerala is 55,000.

Gujarat – An exception

However, Gujarat is a state whose Food and Drug Control Administration (FDCA) has fared better than its counterparts in the other states.

H G Koshia, the state's food commissioner, said, “About 1,20,000 FBOs have either obtained a license or registered offline so far. And I am proud to say that Gujarat has become the first state in the country to start the online registration and licensing process in all 26 districts at one go.”

He added, “We imparted training to all the FBOs and also organised five workshops covering all the districts along with the National Institute for Smart Government (NISG) and the Food Safety and Standards Authority of India (FSSAI).”

Koshia added, “I am sure Gujarat will complete its licensing and registration well before the deadline stipulated by the Food Safety and Standards Authority of India, namely February 4, 2014.”

Puducherry's poor performance

“There are seven months to go before the February 4, 2014 deadline lapses, but the process of licensing and registration is yet to commence in Puducherry,” said Ragesh Chandra, the Union Territory's health and education secretary.

Conclusion

Nevertheless, FSSAI is organising workshops and educating FBOS across the country hoping that all the states concerned come up with solutions for their problems soon.

Edible oils with high PUFA content oxidise fast owing to unstable bond

Very little attention has been paid to the more important qualities of dietary fats and oil. Emphasis has mistakenly been placed on the ratio of saturated to unsaturated fatty acids, irrespective of lipid per oxidation and trans-isomerisation. Contrary to conventional wisdom, unsaturated fats are more toxic than saturated fats.

The quantity and quality of dietary fat is as important as (if not more important than) the ratio of unsaturated to saturated fatty acid of dietary fats and oils are obtained from fresh, whole, unfractionated and unprocessed food, they will be minimally oxidised and will produce healthy cell membranes with normal Cis-fatty acid configuration. They will enhance a normal balance of prostaglandin.

How much dietary fat and oil can one tolerate without risk? Evidence indicates that between 25 and 35 per cent of dietary calories as fat is safe and nutritious. Attention must be paid to the quality and source of the fat described above. The more oxidised the fats, the less they are tolerated by the human body.

In India, on an average, 35 per cent of dietary calories are consumed edible oil as fat. The quality of unsaturated fatty acid (PUFA) is mostly poor, and there is no consideration for rancidity or trans-summarisation.

When high PUFA oils are consumed, they get oxidised very fast due to unstable bond, producing freer radicals and when they are heated produces lipid peroxides.

If lipid peroxides and free radicals are present, either from dietary source or peroxidation of lipid cell membranes, the synthesis of Prostacyclin is inhibited, while Thromboxane synthesis remains unaffected.

In fact, Prostacyclin is considered as most desirable hormone by the system by virtue of their specific action considered as below:

Prostacyclin

?    Reduces the adhesiveness of platelet resulting of free flow of blood cells and plasma;
?    Reduces the tendency for fibrin deposition;
?    Reduces the Thrombus formation, and
?    Reduces the spasm, by relieves the encircling muscle fibre in artery walls
Thromboxane A2

?    It is a potent vasoconstrictor;
?    It causes the intense spasm in blood vessel walls;
?    It stimulates platelet aggregation, and
?    It is a potent hypertensive.

(Note: Aspirin irreversibly blocks the formation of Thromboxane A2 in platelet, resulting in inhibitory effects on platelets.)

Points to be remembered

?    A recent study has shown that reducing dietary fat from 36 per cent of the total calories to 26 per cent of the total calories can significantly lower blood pressures within eight weeks;

?    You must take at least 30 per cent calories from fat;

?    Not all saturated fatty acids have the same effect on cholesterol synthesis in the liver.

(a) Lauric acid (C-12), myristic acid (C-14) and palmitic acid (C-16) elevate cholesterol levels, and

(b) Stearic acid (C-18m) carbon saturated lowers cholesterol by 21 per cent more than oleic acid.

?    Saturated fatty acids are more stable and do not oxidise, hence they are safer than unsaturated fats, except elevating total cholesterol;

?    Mono-unsaturated oils are stable and reduces cholesterol and do not pose a threat to the human body;

?    Poly-unsaturated fatty acids (PUFA) can be more hazardous to health as they oxidise faster. They cause arthrosclerosis;

?    Poly-unsaturated oil inhibits the thyroid function;

?    Poly-unsaturated oil impairs intercellular communications;

?    Poly-unsaturated oil has been associated with skin aging;

?    Poly-unsaturated oil sensitises the skin to the damage caused by ultra-violet rays;

?    Ultra-violet light-induced skin cancer is mediated by unsaturated fats and lipid per oxidation;

?    Excessive PUFA oil interferes with learning, brain damage and behaviour;

?    PUFA oil suppresses several immune function related to cancer, and

?    PUFA is present at high concentration in cancer cells

Experiment 1

Pregnant mice were fed with coconut oil. It was found that the baby mice had normal brains and normal intelligence.

The babies of mice fed with PUFA were found to have smaller brains and inferior intelligence.

Experiment 2

Soya oil was given to nursing mice. The oil incorporated into their brain cells and caused visible structural changes in the cell.

In 1980, shortly after the study, the US Department of Agriculture (USDA) issued a recommendation against the use of soya oil infant formulae.

Human beings evolved consuming a diet that contained about equal amounts of n-3 and n-6 essential fatty acids.

Over the past 100-150 years, there has been an enormous increase in the consumption of n-6 fatty acids due to the increased intake of vegetable oils from corn, sunflower seeds, safflower seeds and soybean.

Today, in Western diets, the ratio of n-6 to n-3 fatty acids ranges from 20-30:1 instead of the traditional range of 1-2:1.

Studies indicate that a high intake of n-6 fatty acids shifts the physiological state to one that is prothrombotic and proaggregatory, characterised by increases in blood viscosity, vasospasm and vasoconstriction and decreases in bleeding time.

n-3 fatty acids, however, have anti-inflammatory, antithrombotic, antiarrhythmic, hypolipidemic and vasodilatory properties.  These beneficial effects of n-3 fatty acids have been shown in the secondary prevention of coronary heart disease, hypertension, type-2 diabetes, and in some patients with renal disease, rheumatoid arthritis, ulcerative colitis, Crohn's disease, and chronic obstructive pulmonary disease.

Most of the studies were carried out with fish oils [eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA)].  However, alpha-linolenic acid, found in green leafy vegetables, flaxseed, rapeseed and walnuts, desaturates and elongates in the human body to EPA and DHA, and by itself may have beneficial effects on health and the control of chronic diseases.

Over the past 20 years, many studies and clinical investigations have been carried out on the metabolism of polyunsaturated fatty acids (PUFAs) in general and on n-3 fatty acids in particular.

Today, we know that n-3 fatty acids are essential for normal growth and development and may play an important role in the prevention and treatment of coronary artery disease, hypertension, diabetes, arthritis, other inflammatory and auto-immune disorders and cancer.

Research has been done in animal models, tissue cultures and human beings. The original observational studies have given way to controlled clinical trials. Great progress has taken place in our knowledge of the physiological and molecular mechanisms of the various fatty acids in health and disease.

Specifically, their beneficial effects have been shown in the prevention and management of coronary heart disease, hypertension, type-2 diabetes, renal disease, rheumatoid arthritis, ulcerative colitis, Crohn's disease, and chronic obstructive pulmonary disease.

However, this review focusses on the evolutionary aspects of diet, the biological effects of n-6 and n-3 fatty acids, and the effects of dietary alpha-linolenic acid (ALA) compared with long-chain n-3 derivatives on coronary heart disease and diabetes.

On the basis of estimates from studies in Paleolithic nutrition and modern-day hunter-gatherer populations, it appears that human beings evolved consuming a diet that was much lower in saturated fatty acids than is today’s diet.
Furthermore, the diet contained small and roughly equal amounts of n-6 and n-3 PUFAs (ratio of 1-2:1) and much lower amounts of trans-fatty acids than does today’s diet. The current Western diet is very high in n-6 fatty acids (the ratio of n-6 to n-3 fatty acids is 20-30:1) because of the indiscriminate recommendation to substitute n-6 fatty acids for saturated fats to lower serum cholesterol concentrations.

The intake of n-3 fatty acids is much lower today because of the decrease in fish consumption and the industrial production of animal feeds rich in grains containing n-6 fatty acids, leading to the production of meat rich in n-6 and poor in n-3 fatty acids. The same is true for cultured fish and eggs.

Even cultivated vegetables contain fewer n-3 fatty acids than plants in the wild. To sum up, modern agriculture, with its emphasis on production, has decreased the n-3 fatty acid content in many foods – green leafy vegetables, animal meats, eggs and even fish.

Linoleic acid (LA;18:2n-6) and ALA (18:3n-3) and their long-chain derivatives are important components of animal and plant cell membranes.  When humans ingest fish or fish oil, the ingested eicosapentaenoic acid (EPA;20:5n-3) and docosahexaenoic acid (DHA;22:6n-3) partially replace the n-6 fatty acids [especially arachidonic acid (AA;20:4n-6)] in cell membranes, especially those of platelets, erythrocytes, neutrophils, monocytes and liver cells.

As a result, ingestion of EPA and DHA from fish or fish oil leads to:

?    Decreased production of prostaglandin E2 metabolits;

?    Decreased concentrations of thromboxane A2, a potent platelet aggregator and vasoconstrictor;

?    Decreased formation of leukotriene B4, an inducer of inflammation and a powerful inducer of leukocyte chemotaxis and adherence;

?    Increased concentrations of thromboxane A3, a weak platelet aggregator and vasoconstrictor;

?    Increased concentrations of prostacyclin PGI3, leading to an overall increase in total prostacyclin by increasing PGI3 without decreasing PGI2 (both PGI2 and PGI3 are active vasodilators and inhibitors of platelet aggregation); and

?    Increased concentrations of leukotriene B5, a weak inducer of inflammation and chemotactic agent

Because of the increased amounts of n-6 fatty acids in the Western diet, the eicosanoid metabolic products from AA – specifically prostaglandins, thromboxanes, leukotrienes, hydroxy fatty acids and lipoxins – are formed in larger quantities than those formed from n-3 fatty acids, specifically EPA.

The eicosanoids from AA are biologically active in small quantities and if they are formed in large amounts, they contribute to the formation of thrombi and atherosmas; the development of allergic and inflammatory disorders, particularly in susceptible people and cell proliferation.

Thus, a diet rich in n-6 fatty acids shifts the physiologic state to one that is prothrombotic and proaggregatory, with increases in blood viscosity, vasospasm, and vasoconstriction and decreases in bleeding time.

The bleeding time is shorter in groups of patients with hypercholesterolemia, hyperlipoproteinemia, myocardial infarction, other forms of atherosclerotic disease, type-2 diabetes, obesity, and hypertriglyceridemia.

Atherosclerosis is a major complication in type-2 diabetes patients. The bleeding time is longer in women than in men and in younger than in older persons. There are ethnic differences in bleeding time that appear to be related to diet.

The hypolipidemic, antithrombotic, and anti-inflammatory effects of n-3 fatty acids have been studied extensively in animal models, tissue cultures, and cells. As expected earlier studies focussed on mechanisms that involve eicosanoid metabolites.

More recently, however, the effects of fatty acids on gene expression have been investigated and this focus of interest has led to studies at the molecular level.

Previous studies have shown that fatty acids, whether released from membrane phospholipids by cellular phospholipases or made available to the cell from the diet or other aspects of the extracellular environment, are important cell-signalling molecules.

They can act as second messengers or substitute for the classic second messengers of the inositide phospholipids and cyclic AMP signal transduction pathways.  They can also act as modulator molecules mediating responses of the cell to extracellular signals.  It has been shown that fatty acids rapidly and directly alter the transcription of specific genes.

Several clinical and epidemiologic studies have been conducted to determine the effects of long-chain n-3 PUFAs on various physiologic indexes. Whereas the earlier studies were conducted with large doses of fish or fish oil concentrates, more recent studies have used lower doses.

ALA, the precursor of n-3 fatty acids, can be converted to long-chain n-3 PUFAs, and can therefore be substituted for fish oils. The minimum intake of long-chain n-3 PUFAs needed for beneficial effects depends on the intake of other fatty acids.

Dietary amounts of LA as well as the ratio of LA to ALA appear to be important for the metabolism of ALA to long-chain n-3 PUFAs. Diet researchers showed the while keeping the amount of dietary LA constant, 3.7g ALA appears to have biological effects similar to those of 0.3g long-chain n-3 PUFA with conversion of 11g ALA to 1g long-chain n-3 PUFA.

Thus, a ratio of 4 (15g LA:3.7g ALA) is appropriate for conversion. In human studies, Emken et al showed that the conversion of deuterated ALA to longer-chain metabolites was reduced by 50 per cent when dietary intake of LA was increased from 4.7 per cent to 9.3 per cent of energy as a result of the know competition between n-6 and n-3 fatty acids for desaturation.

Diet researchers further indicated that increasing dietary ALA increases EPA concentrations in plasma phospholipids after both the third and sixth week of intervention.  Di-homo gamma linolenic acids (20:3n-6) concentrations were reduced, but AA concentrations were not altered.

The reduction in the ratio of long-chain n-6 PUFAs to long-chain n-3 was greater after the sixth week than after the third week Diet researchers was able to show anti-thrombotic effects by reducing the ratio of n-6 to n-3 fatty acids with ALA-rich vegetable oil.

After ALA supplementation, there was an increase in long-chain n-3 PUFA in plasma and platelet phospholipids and a decrease in platelet aggregation. ALA supplementation did not alter triacylglycerol concentrations. As shown by others, only long-chain n-3 PUFAs have triacylglycerol-lowering effects.

In Australian studies, ventricular fibrillation in rats was reduced with canola oil as much or even more efficiently than with fish oil, an effect attributable to ALA. Further studies should be able to show whether this result is a direct effect of ALA per se or occurs as result of its desaturation and elongation to EPA and DHA.

The diets of Western countries have contained increasingly larger amounts of LA, which has been promoted for its cholesterol-lowering effect. It is now recognised that dietary LA favours oxidative modification of LDL cholesterol, increases platelet response to aggregation, and suppresses the immune system.

In contrast, ALA intake is associated with inhibitory effects on the clotting activity of platelets, on their response to thrombin, and on the regulation of AA metabolism. In clinical studies, ALA contributed to the lowering of blood pressure. In a prospective study, Ascherio et al showed that ALA is inversely related to the risk of coronary heart disease in men.

ALA is not equivalent in its biological effects to the long-chain n-3 fatty acids found in marine oils.  EPA and DHA are more rapidly incorporated into plasma and membrane lipids and produce more rapid effects than does ALA.

Relatively large reserves of LA in body fat, as are found in vegans or in the diet of omnivores in Western societies, would tend to slow down the formation of long-chain n-3 fatty acids from ALA.

Therefore, the role of ALA in human nutrition becomes important in terms of long-term dietary intake.  One advantage of the consumption of ALA over n-3 fatty acids from fish is that the problem of insufficient vitamin E intake does not exist with high intake of ALA from plant sources.

Most epidemiologic studies and clinical trials using n-3 fatty acids in the form fish or fish oil have been carried out in patients with coronary heart disease.

However, studies have also been carried out on the effects of ALA in normal subjects and in patients with myocardial infarction.  The effects of long-chain n-3 fatty acids (EPA and DHA) on factors involved in the pathophysiology of atherosclerosis and inflammation.

The hypolipidemic effects of n-3 fatty acids are similar to those of n-6 fatty acids, provided that they replace saturated fats in the diet. n-3 Fatty acids have the added benefit of consistently lowering serum triacylglycerol concentrations, whereas the n-6 fatty acids do not and may even increase them.

Another important consideration is the finding that during chronic fish-oil feeding postprandial triacylglycerol concentrations decreases.

Furthermore, Nestel reported that comsumption of high amounts of fish oil blunted the expected rise in plasma cholesterol concentrations in humans.  These finding are consistent with the low rate of coronary artery disease found in fish-eating populations.

Studies in humans have shown that fish oil reduce the rate of hepatic secretion of VLDL triacylglycerol.  In normolipidemic subjects, n-3 fatty acids prevent and rapidly reverse carbohydrate-induced hypertriglyceridemia.  There is also evidence from kinetic studies that fish oil increases the fractional catabolic rate of VLDL.

The effects of different doses of fish oil on thrombosis and bleeding time were investigated by Saynor et al.  A dose of 1.8g EPA/d did not result in any prolongation in bleeding time, but 4g/d increased bleeding time and decreased platelet count with no adverse effects.

In human studies, there has never been a case of clinical bleeding, even in patients undergoing angioplasty, while the patients were taking fish oil supplements.

(The author is diet researcher and nutritional bio-chemist. He can be contacted at alphacardio@yahoo.com)

Burgundy Hospitality brings Royce', Japanese chocolate brand, to India

Royce’, one of the world’s finest chocolates, makes its way from Japan to the Indian shores this month, with the opening of its flagship store at Palladium in Lower Parel, Mumbai. Burgundy Hospitality, a fine foods venture by Avani Raheja and Samir Gadhok, is the partner for this unique brand of artisanal chocolates in India.

The brand was founded in 1983 in Sapporo, the capital city of Japan’s northernmost island, Hokkaido. Over the years, it has grown from Hokkaido’s best-kept secret to an international phenomenon and offers a wide array of fresh chocolate products that are rich in flavours, textures, complexity and uniqueness.

Royce's signature product is Nama, a cube of truffle-like ganache, which is creamy and moist. Ghana Bitter, Mild Cacao, Champagne and Ecuador Sweet are a few of the flavours. All these varieties are made of fresh cream sourced from the farms near Royce''s factory in Hokkaido.

The brand has also introduced the Criollo Chocolate in India. This is made from Criollo beans, one of the world’s rarest cacao beans sourced all the way from Lake Maracaibo, Venezuela.

Royce’ is also renowned for its quirky novelties like crisp potato chips covered with chocolate, chocolate almonds dusted with bitter cocoa powder, and the Prafeuille Chocolat, which is inspired by the French pastry Mille-feuille, 3mm-thin chocolate squares with gooey fillings of berries.

The brand is not only known for its unique ingredients and approach to chocolate-making, but also for its eye for detail. Each serving of Nama comes with spatula, which is to be used when eating this sensitive chocolate. Every box is packed before it leaves the store in a thermal bag along with a frozen cooling gel pack, to ensure that the product does not melt on your way home.

Avani Raheja, founder, Burgundy Hospitality said, “There are only a handful of brands that garner a religious, cult-like following, Royce’ chocolate is one of these few. When I first tried Royce’, I knew right away that this chocolate was special, and that it must not be kept a secret any longer. Bringing Royce’ to India is our attempt to introduce for the first time in India, truly innovative, high-quality and fresh chocolates, but more importantly we would like to share this secret with other chocolate lovers across the country.”

Samir Gadhok, founder, Burgundy Hospitality, said, “At Burgundy Hospitality, we identify distinct product themes that meet the needs of discerning consumers across the country. Although India is a global agricultural powerhouse on a macro-level, we rarely have access to consistently high-quality world-class ingredients and foods on a micro-level. Indians are chronically underserved when it comes to consistently fresh and well-crafted chocolate. We are excited to fill that void with the launch of Royce’, one of the world’s most revolutionary chocolate experiences.”

The Royce' flagship store has been designed to complement the chocolate brand’s intricate Japanese identity and culture. A box of Royce’ seems deceptively understated and simple, but as one tastes it, the experience is far from simple.

Many of the in-store visual elements, such as the interlace between corian and oak, use this simple complexity as a metaphor for organising themselves within the space.

Talking about the underlying design philosophy, Raheja said, “As the Royce’ brand grows within India we hope to set a new paradigm for taste and design that’s representative of the quality, passion and commitment that the partnership symbolises.”

Gadhok added, “No two Royce’ spaces will be identical in India, and each will have its own unique and expressive characteristics. However, all our stores will evoke a sense of space, luxury and a touch of Japanese quirkiness.”

India to host Codex committee on spices, aromatic herbs & formulations

India will soon consolidate its position as the leader of the world spices and herbs space.

The country will host and bear the expenditure incurred on the Codex Committee on Spices, Aromatic Herbs and their Formulations, a subsidiary body of the Codex Alimentarius Commission. This will be possible following the recent approval of India’s proposal for setting up this committee.

The approval came at the 35th session of the joint food standards programme of the United Nations' Food and Agriculture Organisation (FAO) and World Health Organisation (WHO) in Rome, which was held recently. Incidentally, at the same session India’s Sanjay Dave was re-elected as chairman of Codex for the third consecutive time.

Dave explained, “The Codex Committee on Spices and Culinary Herbs – standards for which did not exist prior to India's proposal – was approved.” He added that the proposal had the backing of other countries.

“Spices Board India – the Kochi-based body set up under the aegis of the ministry of commerce and industry – is one of the two contact points for the committee, the other being the National Codex Committee, which convenes at the Food Safety and Standards Authority of India (FSSAI) headquarters in New Delhi,” he said.

Although the list of top spice-producing nations includes China, Indonesia and Sri Lanka (which is one of the leading pepper-producing countries in the world), Spices Board India labelled the proposal for the committee “an Indian initiative.”

Need for harmonisation

Dave said, “The proposal to institute a Codex Committee on Spices and Culinary Herbs was put forth keeping in mind the need to have harmonised standards for spices, herbs and herbal formulations.”

The harmonisation of standards for spices and herbs under Codex would entail a host of benefits to the various countries that produce them. These are as follows:

?    Facilitates unified classification and harmonisation of spices and herbs, taking advantage of the ISO standards or standards of any other international organisation;

?    ISO does not cover standards for value-added products, including herbal formulations;

?    Ensures transparency, fair trade practices in trade and commerce in spices and the health of consumers across the globe, because spices are active food ingredients and additives;

?    Eliminates trade barriers and triggers consultation and cooperation among spice-producing countries;

?    Facilitates the harmonisation of standards, which in turn, facilitates trade;

?    Facilitates capacity-building in spice-producing countries, which benefits the developing countries;

?    Helps in identifying unique varieties of spices and herbs with active properties and ingredients which can ensure better marketability and fair prices to the farmers, and

?    The Codex platform adds value on account of inter-governmental consultations and gives the basis for enactment of legislations in required areas at the national level

The changing face of international trade has led to the requirement by manufacturers and processors to have single, globally-acceptable technical standards and conformance tests.

“Though there are international standards for spices, there is no common body dealing in product-specific harmonised standards for whole spices, ground spices, spice mixes/blends, spice oils and oleoresins, herbs and herbal formulations,” Dave said.

“The common body should ideally be one like the Codex Alimentarius Commission, which has inter-governmental participation from many of the spice-producing and consuming nations around the world, where discussions and formulations of themes and ideas could be done to formulate harmonised standards,” he added.

AMI & 7 other bodies challenge USDA's country-of-origin labelling rule

The American Meat Institute (AMI) and seven other meat and livestock organisations – the American Association of Meat Processors, the Canadian Cattlemen’s Association, the Canadian Pork Council, the National Cattlemen’s Beef Association, the National Pork Producers' Council, the North American Meat Association, and the Southwest Meat Association – filed a suit in the United States District Court for the District of Columbia to block the implementation of a mandatory country-of-origin labelling (COOL) rule finalised by the US Department of Agriculture (USDA) in May 2013.

The plaintiffs explained that the final rule violates the United States Constitution by compelling speech in the form of costly and detailed labels on meat products that do not directly advance a government interest. In addition, they explained that the 2013 regulation exceeds the scope of the statutory mandate, because the statute does not permit the kind of detailed and onerous labelling requirements the final rule puts in place, and that the rule is arbitrary and capricious, because it imposes vast burdens on the industry with little or no countervailing benefit.

The organisations added that the new and complex country-of-origin labels required for meat and poultry sold at retail constitute compelled speech. Under the US Constitution, commercial speech may be compelled only where it serves a substantial government interest (for example, if the compelled speech is aimed at preventing the spread of a contagious disease). Because these labels offer no food safety or public health benefit, but impose costs the government modestly estimates at $192 million, the government cannot require them.

“Congress mandated the country-of-origin labelling rule for meat and poultry and not lifetime itinerary labelling,” AMI executive Mark Dopp said. He added, “Segregating and tracking animals according to the countries where production steps occurred and detailing that information on a label may be a bureaucrat’s paperwork fantasy, but the labels that result will serve only to confuse consumers, raise the prices they pay, and put some producers and meat and poultry companies out of business in the process. Everyone loses under this rule.”

Wax supply rising; Synthetic waxes growing faster than petroleum waxes

While registering modest growth through 2012, the global wax market continues to be transformed, according to a new report titled, 'Global Wax Industry: Market Analysis and Opportunities' by consulting and research firm Kline and Company.
Synthetic waxes are growing rapidly, supplanting petroleum waxes, which enjoy a dominant, but declining market share. Hydrogenated and natural vegetable waxes are also making inroads.
The global wax supply is growing at a compound annual growth rate (CAGR) of 0.7 per cent. Petroleum waxes represent 73 per cent of the global supply, having dropped below 90 per cent for the first time in decades.
By contrast, synthetic waxes have increased their global market share to 13 per cent, riding on eroding petroleum wax supplies and growing Fischer-Tropsch and polyethylene wax capacities.
On the demand side, candles still represent 46 per cent of the global wax consumption. The growth in electricity grid and use of solar lamps has led to a decline in candle demand for illumination purposes in developing economies. An estimated 80 per cent of candles used today are for decorative or religious purposes rather than for illumination.
Overall demand growth, although modest, is driven by the creation of new end-uses in rheology, surface and health industry applications, and by economic growth in developing nations.
Reduced petroleum wax supplies have created a greater demand for synthetic and vegetable waxes, making them the fastest-growing segments within the waxes market.

The variety of products and applications in the wax market has resulted in a complex pricing mechanism for the wax market.
The period between 2008 and 2012 was characterised by increased price volatility. Crude oil price gyrations during this period coupled with supply and demand mismatch due to recession-linked demand contraction and continuing reductions in petroleum wax production have contributed to this volatility.
As the global supply of petroleum wax shrinks and the supply of other waxes, including vegetable and synthetic waxes increases, the relative prices of these substitute waxes continue to reflect the relative performance benefits or cost-of-usage of these waxes in comparison to petroleum wax.

The regional supplies of waxes do not conform to regional demands, leading to significant movement of wax across the world.
A net wax surplus of more than 1,500 million lb from Asia, Africa, and the Middle-East corresponds with an equivalent deficit in the Americas and Europe, leading to a massive global wax trade.
Despite its decreasing market share, petroleum wax still accounts for approximately 97 per cent of both imports and exports.

Pooja Sharma, senior consultant within Kline’s energy practice, said, “The new dynamic in the wax industry will be the one of change, where the emerging wax supply will be driven by three variables: reducing petroleum wax supply due to Group I plant rationalisations, growth in supply of hydrogenated vegetable wax, and growth in Fischer-Tropsch and polyethylene wax capacity.”
“The overall global wax demand is projected to grow at a CAGR of 1.5 per cent due to an accelerated consumption in the growing economies of Asia, Africa, and the Middle-East; and recovery in wax demand from the matured economies of North America and Europe,” she added.

With anticipated strong demand growth and relatively weak supply growth, the global wax market is expected to experience an increasing shortage. The global wax deficit is projected to grow to almost 850 million lb by 2022.

Chinese govt overhauls standards for dairy products and food additives

China has completed an overhaul of standards for dairy products as part of efforts to address food safety concerns, a health official said recently.

Chen Rui, an official from the National Health and Family Planning Commission (NHFPC), added that the government is also strengthening standards concerning food contaminants, fungal toxins, food additives and food labels.

The overhaul is part of a five-year plan to upgrade food safety regulations.

According to the plan, which was released in June 2012, the government will improve national food safety standards by revamping outdated standards, reviewing and abolishing any contradicting or overlapping standards and working out new regulations.

Many regulations overlap or contradict each other because multiple government agencies were given the responsibility of compiling their own standards years ago.

According to Chen, deputy director of the department in charge of formulating, monitoring and assessing food safety standards under the NHFPC, China has now promulgated 303 sets of national standards on food safety, food additives and nutrient supplements.

Consumers have accused food safety authorities of being too lax, which has led to multiple food safety scandals.

When asked to comment if the government will refer to food safety standards used in other nations when formulating its own standards, an official said, “China will set standards based on its national conditions, but will refer to the standards of developed countries.”

“The NHFPC will have to consider both the health of consumers and the development of the food industry,” said Wang Zhutian, assistant to the director of the food safety standards department.

CTT on processed farm items may affect food & beverage sector: Experts

Commodities Transaction Tax (CTT), which has been implemented from July 1, 2013, is being regarded as the latest levy on processed farm items that may have a cascading effect on the food & beverage sector in the country.

CTT will be applicable on futures contracts on many agricultural commodities – processed farm items to be precise - apart from items like fertilisers, tractors and so on at the rate of 0.01 per cent or Rs 10 per Rs 1 lakh.

While 23 agricultural commodities including almond, barley, cardamom, castor seed, channa, copra, coriander, guar seed, isabgol seed, jeera, maize feed, pepper, potato, mustard seed, red chilli, soyabean, soyameal, turmeric and wheat have been exempted from the purview of CTT, it will be applicable for processed agricultural items like sugar, soya oil, guar gum and coffee.

Though at the outset, it looks like CTT will not affect many items, representatives belonging to major commodity exchanges like NCDEX and MCX and industry experts are fearing that the tax will affect the trade that is directly connected to the food & beverage sector in a big way – almost 300 per cent rise in what the traders will pay as tax+transaction fee (When the tax is Rs 10 per Rs 1 lakh, the latter is Rs 3.2 per lakh thus Rs 13.2 per lakh).

Further, since the trading rates will get so high, many, especially smaller players, will opt for dabba trading or going in for the illegal market. This would mean not only the trade is at loss but the government as well, according to an expert.

Trading comes down
In fact, such is the scenario, states a source, “Trading has come down by 30 to 40 per cent in these 10 days since implementation and a cascading effect is being anticipated for the food & beverage sector as due to the increase in cost of transaction, energy, input and all other costs there will be a steep rise.” The source adds, “The impact will be huge on SMEs (Small and Medium Enterprises), especially those that are connected with coffee and sugar.”

Interestingly, while there are those who feel that the tax will affect only the futures trade and not the concerned sectors, yet a large chunk of those that are dealing in processed farm items and belonging to food & beverage sector maintain that they will affected.

For instance, Tejinder Singh Renu, honorary secretary, Vidarbha Taxpayers Association (VTA), commented, “In my view government has introduced CTT not only to generate revenue but simultaneously discourage futures trading. However such a method would lead to another hurdle of taxation which may result in such trading practices shifting to unaccounted trade.”

He added, “As per practices adopted by government in the past, I fear very soon this rate of 0.01 per cent will be increased, likewise the list of commodities attracting CTT will also go up.”

In contrast, Jekil Patel, deputy manager, Kotak Securities, stated, “CTT will not impact the end-users. But it will impact the trading industry. The participation of the people involved in trading of processed farm items will go down due to this tax. For example, earlier if 10 people were involved in the trading of processed food items now it will be 7. Trading companies will have to bear the burden because we will have to pay additional taxes to the government now.”

Echoing the sentiment, Kirti Rana, director, APMC spices market, stated, “Government wants to earn revenue by one or the other way but CTT will not impact the end-users and traders from the market. The impact will be only on the trading companies and those who are involved in trading processed farm items.”

Effect on jobs, investments
However, Bharat Kumar Shah, chairman, Internal Trade Federation, Karnataka Chambers of Commerce and Industry, differed, “The processed farm items industry will impact in a big way by the imposition of CTT as the prices of certain things which come in the tax ambit will rise. Already the Indian processed farm items industry is burdened and this will have effect on new job opportunities and investments. On the whole, it is not a good move.”

Meanwhile, M K Ananda Kumar, who heads corporate services at NCDEX (National Commodity and Derivatives Exchange Ltd), explained, “The department of revenue, ministry of finance, has issued a notification that CTT is to be levied from July 1, 2013, on futures transactions of all commodities except 23 agricultural commodities. In the notification certain major agricultural commodities such as sugar, soya oil, gur, palmolein, guar gum and rubber have not been included. CTT therefore becomes chargeable on these commodities, raising the cost of futures trading on these agricultural commodities by four-and-a-half times. Other than these, there are several other major agricultural commodities, which have not been included in the list of exempted commodities. This has definitely taken the market by surprise, with the increased cost of hedging, it will discourage hedgers.”

Food inflation
Further, when asked if NCDEX will try for abolition of CTT on processed food items, he informed, “The farm commodities were excluded from the burden of CTT by the finance minister for two special reasons they are - any extra tax on food products will eventually add to food inflation and - futures trading which is still nascent in farm commodities. Both these objectives are defeated by the current notification, which is not consistent to the intent of the Finance Bill. The exchange has written to the finance ministry in the matter.”

Explaining the long-term effect of CTT, Kumar said, “Domestic commodity exchanges are performing the twin functions of price discovery and risk management and thus aiding the Indian farmer for better price realisation. Futures markets provide an efficient means to determine the future price of a commodity. The price discovery has the potential to minimise uncertainties on futures prices in commodity markets. This helps in checking price slumps in post-harvest periods and smoothen out the price changes over the production cycle and help in putting checks on the exploitation of farmers.

He added, “Futures contracts offer farmers, dealers, processors and consumers a means of mitigating the price risks inherent in their business. This results in more efficient marketing system and ultimately lowers costs to consumers. These markets also act as a focal point for the collection and dissemination of price statistics that provide vital signals to all market players and policy-makers.”

He concluded, “India is the largest producer and consumer of agricultural commodities in the world. Domestic futures exchanges have helped establish a consensus on national prices for the agricultural commodities traded on the future exchanges. Thus, for the major agricultural commodities, unlike major non-agricultural commodities, the price discovery takes place within the country and has helped establish a price benchmark used by the domestic industry and policy- makers. Processed agricultural products are derived from agriculture produce and as such any further levy on processed agricultural products will impact the price discovery process and shall have cascading price effect on subsequent agricultural production which will increase the cost of inputs and thereby burden the farming community. Likewise, the end-users i.e. consumers will end up paying higher prices.”

Neo Yoghurt launches two new variants and promotes itself aggressively

Among the latest entrants in the Rs 750-crore Indian yoghurt industry is Neo, a local entrant, which is trying to create a brand equity of its own with aggressive promotional campaigns.

After the launch of Neo Homemade Dahi, the brand has come up with two more variants, namely Probiotic Plus Dahi and Low-fat Dahi. These variants are expected to boost the health of its customers.

Neo is available in more than 1,000 retail outlets in Delhi and the National Capital Region (NCR), covering both modern trade outlets like Big Bazaar, Reliance, Sabka Bazar and Spencers as well as traditional kirana outlets.

The brand recently sponsored The Great India Kitchen Festival, and is offering yoghurt lovers a chance to win a trip to London this summer. This campaign is valid until July 20, 2013. It has also associated with residential apartments.