ORGANIC FOODS-BECOMING MORE RELEVANT THAN EVER!

Compared to main stream food industry the organic food sector is considered puny with its share in the market touching not even 2% but its continued growth, much faster than that achieved by the general food industry conveys a loud message that this sector is here to stay in spite of many impediments before it. It is unfortunate that organic foods are considered to be the prerogative of rich consumers because of the higher price tags they carry though such premium pricing is justified because of the high input costs required to get the necessary certification. That Australia remains the biggest producer of organic foods in the world tells its own story and the rich man's tag is further reinforced because of this factor. Certification process for organically produced foods is very complicated and costly and many developing countries find it non-affordable and non-feasible to get into this business. Here is a take on this emerging market and its dynamics.

"Australia has the largest area of organic farmland in the world at 12 million hectares, with the vast majority of this land comprising large rangelands for organic cattle production. However, the industry is comprised mainly of small operators, which has contributed to difficulties in providing consistency in the quantity and quality of produce. Other dampeners to growth have been intermittent drought conditions over the past five years. Despite this, over the five years through 2011-12, revenue in the industry has remained resilient. The industry will continue to grow strongly over the next five years, favoured by strong demand in domestic and export markets. Over the five years through 2016-17, industry revenue is anticipated to increase an annualised 12.1% to reach $892.3 million in 2016-17. Over this period, there will be increasing participation by supermarket chains in the organic market, downwards pressure on prices from growing economies of scale in production, and benefits from improvements in the certification of organic produce".

A larger question that confronts the world is whether this planet can support a total shift from conventional cultivation to organic version and there is no consensus that this can be achieved. In stead of going too far to produce organic foods every where it may be more realistic to evolve an intermediate mode of production where fertilizers only are allowed while growth hormones, pesticides and other harmful chemicals are avoided. Some times one gets a feeling that organic food certification is too fetish and academic in nature with doubtful impact. Of course most organic food admirers may scoff at this because of their abiding faith in the safety, nutrition and health promoting features. Still it is worth considering whether a new category of foods can be promoted that will be much more safer than conventionally raised foods.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

RELIGION AND FOOD-CONVERGING INTEREST

Food has a strong connection with religion and whether Hindus or Christians or Muslims food is an integral part of religious functions. Seventh Day Adventist Church, one of the significant denominations amongst Christianity has a substantial interest in vegetarian foods as they discourage red meat consumption because of health considerations. They have substantial business portfolio in foods and are involved in manufacturing and marketing of cereals and and cereal based products, meat analogs from soybean and soya milk and powder. They control 16% of cereals market in australia and 40% in New Zealand. They are reported to be owning about 40 food processing units in different parts of the world, operating in Japan, Korea, Middle East, West Africa, Asia and their food exports to more than 20 countries are valued at $ 529 million.

"The church in Australia owns Sanitarium Health Food Company, which controls about 16 percent of the cereal market in that country, 40 percent in New Zealand, and owns five of the top 10 selling cereal brands in Australia, including Weet-Bix, the most recognized brand of breakfast cereal and Australia's most popular cereal for more than 30 years".

Probably their strong belief in natural foods which they consider as healthy is the drive engine for their extra ordinary interest in food processing. The economic returns from these ventures are ploughed back for some of their missionary activities in developing countries. In India there is the Jain community which also believes strongly in vegetarianism, excluding even materials like onion, garlic and some natural foods from their products and being resourceful people they can venture into food processing based on plant raw materials in a big way.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com