Market

Market
Showing posts with label changing face. Show all posts
Showing posts with label changing face. Show all posts

Tuesday, June 7, 2016

Changing face of agriculture and food-An encouraging trend

Agriculture provides bread and butter for the sustenance of population in this planet and every country strives to be self sufficient as far as food is concerned. But with limited land availability all countries cannot produce all their food needs without resorting to imports from surplus producers. Fair enough. What is galling however is the strategy, approach and practices indulged by those surplus producers to coax their land to produce more and more, year after year. The so called industrial agriculture, unlike the small farmer based economies that struggle in many developing countries, produces food that are patently unhealthy and possibly dangerous and most of the health disorders that plague the population in wealthy countries like obesity, CVD, blood pressure, cancer, diabetes etc have been attributed to the reckless way food is raised in these countries. Though dispassionate and well respected critics were crying hoarse about the direction in which agriculture has been moving during the last 3-4 decades, there is hardly any audience for them, the industry behaving as a law into itself without being checked or moderated by governments vested with the power of the people to ensure their welfare. Though there have been some minor changes in the attitude of the industry, still these changes were not considered significant enough to make any serious dent in the already deteriorating health of the denizens. Ultimately citizens are realizing that they cannot depend on the governments totally to protect them and being the consumers who sustain the industry they can have a sobering influence in the market place. According to some experts perceptible but significant changes are taking place in the food front in countries like the US where the influence of big agriculture is declining significantly and more healthy foods are providing options for them, mostly driven by consumer pressure. Read further about this epoch making changes in the food front.

"There are now more than 8,000 farmers markets in America, an increase of 180 percent since 2006. More than 4,000 school districts now have farm-to-school programs, a 430 percent increase since 2006, and the percentage of elementary school with gardens has doubled, to 26 percent.  During that period, sales of soda have plummeted, falling 14 percent between 2004 and 2014.The food industry is rushing to reformulate hundreds of products to remove high fructose corn syrup and other processed-food ingredients that consumers have made clear they will no longer tolerate. Sales of organic food have more than doubled since 2006, from $16.7 billion in 2006 to more than $40 billion today.
The kind of grass-finished beef and pastured eggs that Joel Salatin produces at Polyface Farm were so exotic in 2006 that national sales figures for them didn't exist; now, you can find these foods in many supermarkets, and both categories are growing by double-digit percentages each year. (Carl's Junior, the fast food chain, introduced a grass-fed hamburger in 2014.) From California to Georgia, there are now hundreds of farms modeled on Polyface's intricate choreography of animals. And Salatin himself has become an international celebrity farmer, a social type I don't think existed in 2006. In fact one of the most encouraging developments of the last few years has been the rising prestige of farmers, who, as Salatin pointed out, used to be the butt of dumb hick jokes. One of the most popular internships among college students today is to work on an organic farm. Most of these aspiring farmers will no doubt decide farming is not for them, but even those will emerge from the experience with a keener appreciation for what it takes to be a farmer and a greater willingness to pay a fair price for the important work farmers do. But some of these novices are evidently sticking it out: The total number of farmers in America, which had been in free fall for most of the 20th century as agriculture industrialized, has begun to rise again for the first time since the U.S. Department of Agriculture began keeping track. This is encouraging news, since it's hard to imagine creating a more sustainable and diversified agriculture without a great many more farmers on the land."

In a country like India green revolution and white revolution during the latter half of last century did bring about dramatic increase in the production of rice and wheat but the fortunes of millions of small farmers did not see much change. Thousands of small farmers are finding farm life unbearable and committing suicides to escape from misery and sufferings because the small landholdings, most of them being less than an hectare, cannot provide enough to elk out an honorable existence without heavy debt burden. The land scenario as it exists now does not lend itself to application of modern farming technologies and the financial wherewithal for adopting them is sorely missing. It is no wonder that rural farmers are shifting in hordes to urban regions looking for a livelihood as laborers and their number is dwindling fast. India is thus in a dilemma as to how it can feed its 1.2 billion plus population in the coming years having neglected agriculture for so long. The new emphasis by the present regime on agriculture needs to be translated into a mission based ground level action to save the farmers from extinction and spare the country of famine in future. Fortunately the much hated industrial agriculture has not been able to take roots in the country, in spite of the attempts being made by large MNCs and if healthy food is to be ensured this has to come from millions of small farmers who must be organized into modern cooperative organizations for large scale application of new indigenous technologies developed by our own varsities suited to small farmers. India must not repeat the mistakes of countries like the US in promoting powerful agricultural private corporates who eventually become too powerful to be controlled or moderated for the welfare of the citizens.. 

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

Tuesday, November 25, 2014

Changing face of cooking oil business in India-Shift from loose vending to branded products

Cooking oil is an essential component in the budget of every hold in India. Unlike in western countries most Indians consume home fried snacks in stead of depending on the products offered by the industry. Depending on the region preference varies and some of the commonly used oils include that extracted from groundnut, coconut, sunflower seed, sesame,  rice bran, maize germ, soybean, etc but critical shortage of domestic oils during the last 3 decades set a trend of importing palm oil from Malaysia and Indonesia in sizable quantities. To day the number one cooking oil is Palm oil and its fractionated version Palmolein with most people switching over to it for economic reasons. till 1990 oil was packed in square tins of 18 liter size for retail dispensing in consumer's container. Due to development high function plastic packing materials loose vending started declining and to day more than two third of the oil sold in the market is in plastic unit packs under different brands. Probably Indian consumer embraced plastic packed oils because of rampant adulteration of cooking oil on a massive scale by unscrupulous traders and fraudsters trying to make a fast buck. Here is a report on Indian oil market as it is being developed by a few national players and some strong regional brands. 

"There has been a surge in consumer preference for branded and packed edible oil, as compared to the traditional loose-sold variety. In 2012-13, sales of the former category in the country overall rose 30 per cent. And, the share of branded and packed oil in the overall cooking oil segment shot up to 60 per cent from 45 per cent in the previous year. The packed/branded category has a strong presence among regional companies. The share of national brands continue to remain between 10 and 12 per cent. Consumer awareness of the benefits of using packaged oil from a known brand and the ability to afford the higher price for this (termed 'increased financial scalability' in trade jargon) appears to be the reasons for the shift. Also, the difference in prices has narrowed. "The attraction towards branded and packed products is increasing rapidly. Branded and packed edible oil has replaced the loose commodity in urban areas," said Siraj Choudhary, chairman of Cargill India, producer of edible oil brands, such as Gemini and Sweekar and the Indian arm of the US commodity giant, Cargill International. Manufacturers have also started retailing the commodity with value additions, such as promises of various health benefits over the loose ones. Ruchi Soya Industries, the biggest in the branded category, with Sunrich, Nutrela and Mahakosh as leading brands, has posted 17.4 per cent growth in branded edible oil sales, at Rs 5,413 crore in 2012-13. In the fourth quarter, it registered 10.75 per cent growth in branded edible oil sales at 2.1 million tonnes (mt) as compared to 1.9 mt in the corresponding quarter of the previous year. Says Dinesh Shahra, managing director, "We witnessed a staggering growth in branded sales in the last two quarters. Our focus on the growth of these has helped in achieving better margins." A recent paper presented by Dorab Mistry, director, Godrej International, estimates India's edible oil consumption at 17.6 mt in the oil year of November 2012-October 2013, as against 16.6 mt in the previous year. He forecasts per capita edible oil consumption at 13.9 kg in 2012-13, up from 13.4 kg in the previous year. "Shifting is happening very rapidly from loose to branded and packed edible oil, which can be attributed to a combination of factors, including growing prosperity of the middle class and narrowing of the premium over loose products," said Atul Chaturvedi, chief executive officer of Adani Wilmar, producer of the 'Fortune' brand. The premium for branded and packed products has been narrowing in recent years, with the difference between packed and loose varieties now Rs 10-15 a kg and Rs 15-20 a kg between the loose and branded ones. Branded edible oil was earlier Rs 30 - 40 a kg costlier."

The cooking oil prices are escalating practically every day in spite of galloping imports of palm oil products and there is no sign that this trend is showing any abatement. Imagine some of them like Coconut oil and Sesame oil costing more than Rs 200 per liter, almost 100% increase in 1 year, reasons for which are not clear. Though from the health angle experts frown on too much consumption of oils like Palm oil, the failure of the country to increase the production of oil seeds commensurate with demand has given this sector a golden opportunity to reap higher and higher  each passing day! Annual per capita availability of 13.9 kg of oil working out to about 45 gm per person per day is not bad considering that the recommended fat intake is 50 gm per day per person. After all a significant part of fat needs are met through invisible fat present naturally in the diet. The only worrying fact is that every Indian citizen is forced get 50% of his daily requirement oil through imports! A pathetic situation indeed and shame to the Government of India!

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