A new food standards regime coming to vogue-Will it cause disruption of global trade?

Every country in this planet has a food industry of its own which seeks to meet the food needs of the citizens through processing of native raw materials or imported ones if not available within the country. Besides some foods are always imported because no nation can be expected to be 100% self sufficient in terms of its needs making global trade a necessity rather than a luxury. Like any buyer-seller arrangement, country to country trade also involves negotiations, bargaining and agreed standards regime under which export-import is managed. International agencies like WTO, WHO, FAO, ISO etc do provide guidelines and recommendations regarding food safety and standards but ultimately the trade will take place only based on mutually agreed upon prices and consensually arrived quality parameters. In any market place buyer has invariably an advantage if there is over-supply while supply shortage will give advantage to the seller. Recent promulgation of a new set of standards in the Gulf countries for food imports follows the same reality and these mandatory standards under the banner of Halal Food Certification are expected to be the basis on which imports of foods from non-Islamic countries into the gulf region are going to be regulated. Here is a take on this new development in the global food trade front.   

"Halal food products from Australia and New Zealand are the first imports to be subject to the UAE's new standards, which aim to create a global mark of quality for the Islamic food industry. The halal mark was unveiled by the Emirates Authority for Standardisation & Metrology (Esma) at Gulfood yesterday, following a three-year development process that is part of Dubai's push to become the global capital of the Islamic economy. The new halal certification covers the full process from farm to slaughter to additives and ingredients used, Esma said. The standards are backed by the Organisation of Islamic Cooperation, the 57-country body that aims to preserve Islamic social and economic values. Within two years all food imports will need the mark to pass through the country, Esma said. About a fifth of the global food trade is halal, according to Datamonitor, and it is forecast to be worth US$10 trillion by 2030, a Global Futures and Foresights study says. Halal food imports into the GCC will reach $53.1 billion by 2020, according to the Economist Intelligence Unit. "More than 85 per cent of the food we import comes from non-Muslim countries," said Dr Rashid bin Fahad, Minister of Environment and Water, who is also chairman of Esma. "We need new standards of transparency and security for halal customers. There will be no disruption to the food chain, it will be an incremental change with Australia and New Zealand the first countries to fall under the new standards."

Probably there is logic in promoting Halal Foods Certification in a big way as Muslims constitute a very sizable segment of world population and most of them are religiously conservative in following Islamic traditions and culture as originally evolved over so many centuries ago. It is to the credit of the Gulf countries, especially Dubai, that Halal Food Standards have been codified with no ambiguity keeping in view the knowledge generated by modern science. That these standards are not radically different from international ones and can be easily met by all countries with least disruption of their existing industrial landscape must be appreciated. If countries like Australia and New Zealand can export their products with no difficulty as per the new Halal Standards global trade will have no impact if other Islamic countries also follow the same guidelines for food imports into their countries. 

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

DAIRYING IN INDIA-A SILENT REVOLUTION HAPPENING IN PUNJAB

Memories of late Dr V Kurien who pioneered the milk revolution in the country several decades ago may be fading and the younger generation who has never known the scarcity condition vis-a-vis milk availability of milk in the country that existed before nineteen eighties needs to be educated about his yeoman service in this area. Now that India is the top milk producing country in the world, it may be time to look ahead and see what is required to be done for the sustainability of dairy industry. It is here that the forward looking state of Punjab is providing the beacon to rest of the country. Here is a report about the innovative and progressive dairy farmers in that state which can be a role model for rest of the country.  

"Punjab is one of the top five milk producing states in the country. Punjab's per capita milk availability at 937 gm is nearly four times the national average of 252 gm. And the state's average yield is much higher than the national average. But a falling cattle population because of unviable backyard dairies and a labour shortage impacting commercial dairies posed a serious challenge to the growth of the dairy industry in the state. That is set to change now with Singh, one of 6,000-odd big farmers, going in for full automation. They have formed an association known as the Progressive Dairy Farmers' Association (PDFA). Together, they produce nearly 800,000 litres of milk a day. The average yield of a cow is nearly 8,000 litres in a lactation cycle against the national average of 1,500 litres, claim PDFA functionaries. And nearly 40 per cent of PDFA members have gone in for automation. The association owns a high-tech processing unit located 50 km away from Ludhiana city. And it has launched its own milk brand, La Pure Milk, which is marketed in Ludhiana. "I went to Israel in 2006 and saw cowsheds being built there. Upon enquiry, I got to know that a model cow shed should have a height of 35 feet and width of 120 feet. Such a shed allows proper ventilation and reduces the temperature inside by 4-5 per cent," recalls Daljeet Singh Gill, president of PFDA. He also happens to be a member of the Punjab State Farmers' Commission's advisory committee. Association members learnt about feeding techniques in France and Sweden and about fodder quality in New Zealand. PFDA helps members import machines and provides training to farmers on running them. Veterinary help, too, is extended quickly. The association is in the process of fixing marketing requirements of its members."

Suffice to say that Punjab will accomplish the feats of several dairy farming countries like New Zealand, Australia, Denmark and others in terms of raising of milk animals, production standards and processing and show its fellow countrymen that nothing is impossible if there is a will to work hard and set their vision high. The conflict between manual operation and mechanization is a real one in a country like India where unemployment is supposed to be high about 13% of the population. But food production and processing require quality human resources and skilled workers and only training and skill development can make unemployed people fit for absorption by the industry. Unless such skill is generated shortage of human resources will always compel the industry for more and more mechanization.

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

THE "FOOD BOWL" OF NEW ZEALAND-AN INNOVATIVE SET UP

The big difference between SMEs and large corporate food processing is the power of innovation for which latter is equipped with necessary R & D infrastructure. SMEs can never be able to mobilize enough resources in developing and testing new products which acts as an impediment to compete effectively with larger players to establish viable markets. Many countries do provide some sort of state support to these fragmented industry through public funded R & D though it is another matter that these facilities invariably become moribund without serving the purpose. It is rarely realized that any R & D carried out in isolation without involving the user industry is of academic interest and waste of public money. Against such a scenario the efforts of New Zealand government in setting up what is called a Food Bowl in the country with state of the art facilities for product development and pilot testing for assessing the feasibility and acceptability of the products in the market. Here is a take on this innovative approach in this country which deserves a big applause.   

"Auckland's new Food Innovation Centre based in Manukau - Te Ipu Kai, the Food Bowl - opened today and is set to become a key component of New Zealand's developing network of food science and technology innovation resources. The Food Bowl is an impressive 2000 square metre export certified purpose-built and multi-faceted pilot plant that will support food manufacturers to cost effectively develop and test new products for commercialisation, specifically for the fast moving consumer goods market. The first of its kind in New Zealand, the new innovation centre is being hailed by the Mayor as a critical piece of infrastructure for Auckland, helping to address gaps in the food product development pipeline while accelerating the growth of high-value exports based on Kiwi innovation and research. "The food and beverage sector is a significant contributor to Auckland's economy with firms earning approximately $4.7 billion each year. The new food innovation centre will provide additional support to this thriving sector and is a solid platform for taking it to the next level," says Len Brown. "Investing in infrastructure to support Auckland's economic growth is essential to achieve our vision of the world's most liveable city. Enhancing food and beverage exports and creating more jobs is fundamental." Located at Auckland Airport, New Zealand's primary export hub, the new centre features state-of-the-art flexible food and beverage manufacturing facilities, able to operate 24 hours a day, seven days a week. Over time, the centre is intended to attract a cluster of associated food businesses. Representing a capital asset of $18.1 million for the food sector, the centre is estimated to provide benefits that exceed $26 million by June 2014, according to Tony Nowell, Chairman of New Zealand Food Innovation Auckland, operators of the centre".

It is not that in a country like India there are no institutions of excellence in Food Research and once reputed CFTRI, DFRL and Food Tech training institutions have become more or less redundant because they are all working like "frogs in the well", living far away from ground realities. The much touted NIFTEM, a 100% government project which is yet to take shape is not going to be different from its older counterparts, again due to the fact that there is no viable industry linkage for undertaking programs that are relevant to the manufacturing sector. Putting a couple of industry managers on their governing body does not make these institutions industry relevant but tackling problems and future needs of the industry, short term as well as long term, only can make any meaningful impact. One can only wish that GOI takes a leaf out of the purposeful efforts in New Zealand in strengthening its food manufacturing and export sector through visionary programs like the Food Bowl.

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

FOOD "APARTHEID" IN MAKING?-IT IS TIME FOR WTO TO INTERVENE

Palm oil, the mainstay in the economic strength of countries like Malaysia and Indonesia is about to get a body blow in Australia and New Zealand because of grossly discriminatory labeling regulation being proposed by these countries. It is beyond one's perception as to how a civilized country can harm the economic interests of a fellow country by restrictive trade practices not based on scientific facts. The only crime of Palm oil is that it is being produced in a more efficient manner and costs less in the global market compared to other competing oils like Soybean oil or Canola. The zealots of environmental salvation has zeroed in on Palm oil as they are of the view that large tracts of forests are denuded to establish giant Palm plantations in countries in the forefront of Palm oil production. How ever these protectionists are ignoring the fact that Palm oil trees, planted in denuded forests, also provide similar benefits of a green cover and a carbon sink! If such narrow considerations creep into sustainability assessment, practically no food crop can stand strict scrutiny and no one seems to have thought about the implications of such a policy world wide?

Almost immediately after the bill passed the Senate, international governments and food industry representatives criticised it, saying it was illegal and discriminatory. Dompok stated that the bill did not take into account that the palm oil sector has contributed substantially towards addressing rural poverty and generating employment in the agricultural sector.The Malaysian palm oil lobby had opposed the bill, with the Malaysian Palm Oil Council putting their case before a Senate committee public hearing in April. Y.B. Tan Sri Bernard Dompok, Malaysia's minister of plantation industries and commodities, said that labelling palm oil purely from the perspective of sustainable production was discriminatory. He also stated that in comparison, competing vegetable oils were not required to be labelled, which makes the bill discriminatory of only one type of oil.

Why is that some countries in the West try to put road blocks in the economic development of "not so well to do" countries in such a blatant way? Probably ugly protectionism may have some thing to do with such reprehensible policies under which domestic industry is "cocooned" to ward of any adverse influence through imports of low cost foods and ingredients from developing countries. The only way to counter such a strategy will be to declare many foods made in the developed countries unacceptable unless they modify their label declaration to suit the needs of the developing countries. If the world gets into such a "tit for tat" treatment mode, what will be the future of WTO which is supposed to remove all barriers for free and fair trade among the nations in a true spirit of a "global village" with no boundary restrictions? Nothing but utter chaos!

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

SAFETY OF FOOD PACKAGING MATERIALS-NEW FINDINGS

Plastic materials, made mostly from petroleum based chemicals, are often indicted for their potential to harm human health when used for packing foods. When a food is packed in a plastic container, be it a film pouch or a rigid container, there is a tendency for the food to leach out some of the constituents used in the manufacture of the container into the contents and such migration is influenced by many factors including the type of container used, temperature, pH of the food, composition of the food, duration of contact, storage environment etc. To allay such fears, a scientific study in Australia and New Zealand was undertaken with government blessings and the findings provide interested reading.

"Following the analyses, the FSANZ team declared: "There were no detections of phthalates, PCFs, semicarbazide, acrylonitrile and vinyl chloride in any of the foods analysed in this survey." However, ESBO, produced by epoxidation of soybean oil and used in a range of plastics most often as a plasticiser, was the only one of the potential chemicals of concern detected in the exercise. It is also commonly used in PVC sealing closures (gaskets) of glass jars to form an airtight seal to prevent microbiological contamination of foods . PVC, in the form of films and gaskets, can contain up to 30 per cent of the substance. The chemical was found in three foods packaged in glass jars at concentrations ranging from 4.2 to 10 mg/kg. The highest levels were discovered in olive brine, followed by savoury pasta sauce and infant dinners".

How far the study really represents the whole spectrum of the food industry is not clear. Also the sample size and the varieties of packaging material studies do not appear to be adequate to come to any sweeping conclusion as done by the group involved in this study. There universally accepted methods to study migration behavior of plastics and food processors are expected to confirm when buying the packaging materials that the container suppliers vouch safe regarding the food grade specifications of the same. Another uncertainty pertains to the impact of cumulative ingestion of substances migrated into foods packed in various plastics on human health. One should not forget the recent food tainting episode in Taiwan caused by the plasticizer DEHP which is used in PVC up to 40%. Considering all these factors consumer may be justified in asking for safer and sustainable alternatives to fossil fuel based packing modes for foods.

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

BOTTLED WATER CONTROVERSY-THE NEW ZEALAND EPISODE

One of the critical questions that haunts small scale food processors world over is whether the application of food laws are discriminatory in nature, invariably favoring large industries with financial and political clouts. It is a matter of concern that the transnational food and beverage giant Coca Cola Corporation was allowed to get away with just a rap on its knuckles after committing a grave mistake in the form of manufacturing bottled water products contaminated with mold which caused diarrhea and vomiting when consumed. Instead of punishing the manufacturer with severe penalties, the New Zealand food safety agency pushed the incidence under the carpet after administering a mild rebuke. The manufacturer was able to get away by apologizing to those "inconvenienced" by drinking the contaminated water! Here is a take on this episode.

"NZFSA initially agreed on a trade level recall, rather than asking consumers to return the product, because the water was usually drunk soon after it was bought and people would not have drunk much of the water as it tasted horrible. However, it was then decided that the scope of the recall was not enough and it was extended to more water produced at the factory. Between August and February Coca-Cola sold more than 2.5 million Pumped bottles. Following an investigation which concluded last month NZFSA identified a number of deficiencies in Coca-Cola's processes. It said a marketing company, not Coca-Cola, alerted NZFSA to the trade recall and Coca-Cola had not notified its third party auditor it was recalling the product. NZFSA was also unaware Coca-Cola's had changed its third party auditor. MAF said Coca-Cola's recall plan was now being rewritten with its guidance. Coca-Cola realised major improvements had to be made to its recall plan and was pro-active in getting to the source of complaints, MAF said. However, MAF warned that although it was closing the file, if Coca-Cola breached the Food Act again it would consider legal action. In a statement Coca-Cola apologised for taking Pumped off the shelves, especially to those who had bought the contaminated bottles".

It is shocking that a company like Coca Cola can commit a mistake in the simple process of sterilizing water and obviously one cannot attribute this to any genuine problem. The mishap must have happened because of the negligence of the company staff including the QC group and the concerned authorities should have taken a more serious view of this episode. Not only that, the manufacturer should have been taken to the court for awarding financial compensation to the affected consumers as per international norms. One may recall that the same company was hauled up in India a few years ago for contaminating the waters around their bottling plant, for which heavy financial compensation is being sought. No matter how powerful the industry is, liability for damages wrought about by its mistakes on the community must be enforced.

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

HALAL CERTIFICATION-THE NEW ZEALAND 'EXPERIENCE'

According to Islamic Religious Rules, all foods consumed by its members must conform to Halal standards which are universally respected. As many countries do not impose any restrictions if the products are certified as Halal by the industry, disputes have often arisen because of lack of credibility of its certifying arms. New Zealand, one of the top beef and dairy products exporters in the world had experienced serious problems regarding quality and has now brought the certifying organizations, New Zealand Islamic Meat Management (NZIMM) dealing with meat products and Federation of Islamic Association (FIA), managing dairy product exports under its direct overseeing control.

"The Government is stepping into an arena it has previously tried to stay clear of - the certification of New Zealand exports as "halal", or "clean" in terms of Islamic religious rules. New Zealand Food Safety Authority (NZFSA) has announced that organisations which certify halal meat for export will be subject to government oversight "to standardise halal certification and improve assurances to our trading partners". "While the proposed model focuses currently on meat exports, it could be extended to include dairy products in the future," said NZFSA market access director Tony Zohrab. NZFSA has added halal export certification for Indonesia, Malaysia and the Middle East to the list of additional assurances it provides to importing countries.Halal certification in New Zealand has not previously been directly regulated by government officials".

Probably the proposed ban by Indonesia on import of $ 100 million worth beef and $ 540 million worth dairy products from New Zealand in 2010, because of quality issues, must have spurred the action by the food safety authority in that country. More significantly New Zealand also has thrown open the field of certification to others for certification purpose, who must conform to the standards of performance stipulated.

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