CAN GLOBAL FOOD "GIANTS" HELP REDUCE POVERTY IN THE THIRD WORLD?

The 21st century is expected to be dominated by the poor and famished farmers of the third world because many global food processors need precious raw materials for their manufacturing programs which cannot be met entirely from their patrons in the wealthy nations. While country to country exports do involve many developing countries which are strong in some agricultural produce, the new initiative by some of the internationally strong branded products manufacturing companies to tie up with farmers and farmer organizations for direct access on a long term is a welcome development. Whether it is due to supply compulsions or genuine desire on the part of these MNCs to help the farmers of the third world countries is immaterial as long the latter is benefited. Many developing countries in Asia, Africa and South America are expected to benefit from the new perception on the part of the big food industry players. One can only hope that the new relationship will be of longer duration based on mutual respect and appreciation rather than the old colonial mindset. 

"While governments and non-profits have a critical role to play in reducing poverty and hunger around the world, it is becoming clear that the global food and beverage companies may have an even stronger hand to play. The sector is powerful and highly concentrated with a just a few companies controlling thousands of brands around the world. Nestle, once a mere chocolate company, is now the world's largest food and beverage company with 6000 brands including coffee (Nescafe), breakfast cereals (Cheerios), and nutrition bars (PowerBar). Kraft Foods sells snacks in 170 countries, including brands such as Nabisco and Cadbury. PepsiCo is now a larger "food" company than a "beverage" company with global brands like Frito-Lay and Quaker Oats. These global companies are buying the ingredients (corn, rice, wheat, cocoa, etc.) for food products on an enormous scale, but not from small farmers in the developing world who make up the majority of the world's poor. They turn, instead, to farmers in Australia, South Africa or the U.S. -- rather than their counterparts in Ethiopia, Haiti or South Sudan. Thus, poor farmers lack dependable buyers that could give them fair prices and a consistent market, helping them and their families out of poverty. Given that subsistence farmers comprise 70 percent of the world's poor, improving their income is our best strategy for reducing global poverty".

The new trend in leasing of land in the third world countries for agricultural activities is like a double edged sword that can be dangerous or beneficial depending on the conditions of lease. While using the land in third world countries exclusively for 100% export may attract criticism if the local population is starved of food, it can be a boon in raising the land productivity to unimaginable levels by using modern techniques of cultivation. The contract system of engaging farmers to raise particular crops for dedicated use by the industry giants on a long term basis can be another route for boosting farmer incomes in the lessee country besides receiving high quality inputs and training for producing crops of particular specifications required by the manufacturers. It is imperative for western nations that they engage the developing countries in genuine partnership through mutually beneficial organizational linkages on a long term basis.

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

CARE FOR CONSUMERS OR PERISH! CATERING SECTOR BEWARE!

What lies ahead for the catering sector in India? Though scanty reports on the present status of this sector do indicate a booming business, this trend need not last for long if one goes by the experience of this sector in other countries. Having higher income in hand may drive customers in hordes to restaurants but such a situation also raises aspirational goals, shifts the goal posts and induces frustration among the patrons. In India one of the sectors of business that is doing extremely well is catering business and the margin of profit is growing exponentially with steep increase in prices of their offerings, forcing some of the lower middle income group of population to shy away from "eating out" option more and more, though it might not have affected others with unlimited disposable income at their disposal. The trend being foreseen in the US may not be too relevant to India but still it is a pointer to the likely happenings in the coming days for which Indian catering sector must be prepared if not to day but in the not too distant a future.

"Agents can head off this scenario and build a strong consultative relationship with their restaurant customers by asking key questions at renewal time. Here are some of the trends that could put restaurants at risk and the questions agents should ask their restaurant customers :
    1. Mobility. Has the restaurant added new services, such as delivery of meals using hired drivers with their own cars?
    2. Branch out businesses. Has the restaurant started a new line of business, such as catering?
    3. Trendy foods. Has the restaurant introduced new menu offerings as part of the strategy for attracting more customers, such as locally sourced foods, an emphasis on organic ingredients or assurances about non-allergenic ingredients?
    4. Additional payment methods. Is the restaurant accepting new methods of payment, such as online credit charges or smartphone purchasing?
Armed with the answers to these kinds of questions, you can offer your customers a menu of options that go beyond the coverage required for an on-site restaurant operation. Insurance carriers with experience in the food services industry can work closely with you to make sure your customers have the right "ingredients" in their policies."

Discussing about the prices customers have to pay at an ordinary restaurant which have practically doubled in the last three years in the name of inflation, it should not be forgotten that there is a "Lakshman Rekha" or a point of no return as far as the customers are concerned. Probably catering sector is under an illusion that all people in the country have plenty of money to squander like the young IT professionals or the much pampered government employees, corrupt as well as honest. India is still an affordable country where it is possible to get a full and decent meal in a functional restaurant at a price less than Rs 20 while most restaurants have hiked up the same to Rs 50 and beyond. Any restaurant in a city with tolerable hygiene and minimum ambiance will cost a family of four at least Rs 250 but imagine how many families can afford this if such restaurants are to be visited at least once in a week! Restaurant associations must ponder over this fact and unless there is a genuine attempt to rationalize prices they may have to face the wrath of the people in the form of reduced patronage and infrequent visits to their establishments. One of the reasons for the street vendors to become darlings of the people and make them reputed landmarks in may towns and cities in India and for the steep popularity of the Food Truck phenomenon in the US is precisely the fact that the organized restaurants are pricing themselves out of the minds of common man! Beware of this trend!

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

OMEGA-3 OIL AND PROBIOTICS THROUGH MILK-A NEW DEVELOPMENT

Probiotics and Omega-3 fatty acids are currently the hot favorites of health food industry and during the last few years several products have been launched containing one of these nutrient ingredients. While probiotics are invariably added to yogurt type of products, Omega-3 oils are used to fortify juices and other processed foods. Probiotics are basically Lactobacillus cultures which are stabilized before incorporation and act in the intestine once ingested enriching the gut microbial colony for imparting some of the beneficial attributes associated with them. However the major constraint with such products is their limited shelf life. Similarly Omega-3 oils, mostly derived from some fish varieties, do have trace aroma of fish still lingering, deterring its use by consumers averse to fish. New technology now being developed in Australia attempts to overcome the above problems and open up vast opportunities to the industry to turn out increasing varieties of food containing these nutrients with no adverse effect on the native texture or aroma. Here is a take on this latest innovation. 

"Adding probiotics to manufactured dairy and juice products can improve digestion and general gut health, and boost the immune system. However, such products are not currently possible, as milk and juice products with probiotics go sour within days. "And even though existing food products fortified with fish-based omega-3 oils only have small amounts added, a residual smell and taste is common. "The key advantage of Progel ingredients is that they don't affect the quality, texture, taste or smell of the product, and products containing Progel encapsulated actives may provide sufficient levels of active nutrients to provide a beneficial source of probiotics and omega-3 to consumers," Professor Bhandari said. "Probiotic and omega-3 juice products made possible by the Progel technology also include calcium, so they would offer many of the health benefits of calcium, probiotics and omega-3 to consumers who do not regularly consume milk and yogurt or oily fish." 

It is true that there are serious questions regarding the true health benefits of preparations containing probiotics in yogurts and almost all claims have been rejected by the EU authorities for lack of adequate scientific evidence. Similarly inclusion of Omega-3 oils in processed foods may raise some issues regarding its necessity and efficacy. More than the actual content of Omega-3 fatty acids, there is some evidence that it is the ratio of Omega-3 to Omega-6 fatty acids that is more crucial than the absolute content of either of them. The stand that those who do not take yogurt or fish are prone to serious diseases is based on faulty premise as there are millions of consumers who do not consume either of them and still live without any health handicaps. But in the relentless pursuit of "value addition" in food processing, it may be important for the industry to come up with such products which may help their bottom line. Probably these fortified products might be more beneficial to those consumers suffering from deficiency diseases rather than normal ones consuming a mixed diet.

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

FOOD IMPORTS-LOGICAL REFORMS

Who wants controls any way on what is going on uncontrolled or ill-controlled for ages? Naturally it is the human tendency to do things with as much secrecy as possible, especially when they are not done properly. The food industry world over are under a siege unable to convince the consumers regarding their sincerity and honesty and invariably controls and regulations need to be put in place to protect the welfare of the citizens. Latest "unhappiness" on the part of the food industry in India comes from a feeble attempt being made by the FSSAI, the apex body supposed to ensure consumer safety to tighten the labeling rules for imported foods to make them more transparent. Here is a take on this new irritant between the enforcers and the industry.

"As for FSSAI, going by its website, under the new norms, the body has specified for 'Date of Manufacture' to be given in date, month and year format on sticker in addition to the 'Date of Manufacture' in Julian format already present in the labels along with the rectifiable labelling requirements viz. name and address of the importer and vegetarian, non-vegetarian logo. As for batch number, the body specifies, "Consignments without prefix such as Lot number/ Lot/Code/Number Code/Batch Number/Batch or any other distinguishing prefix as per FSSR, 2011, shall be accepted subject to the condition that the authorised officer, FSSAI, will verify from the relevant documents from the manufacturer/exporter of the source country and satisfy himself that the numbers/alphabets combination of numbers/alphabets present in the labels are a valid batch number/lot number/code number of that particular consignment." While FSSAI has given three months time beginning December 15, 2011, for food importers to get the minor labelling defects rectified, food importers are not happy with the whole procedure".  

India has become a breeding ground for adulterated, sub-standard and unsafe foods with the state infrastructure for enforcing national standards for various foods in a pathetic condition. Recent revelations that many established "Made in India" brands of foods, being "Faked in China" are flooding the markets in many countries including in some of the border states within the country is shocking and humiliating, reflecting the "toothless" nature of Indian food laws. Added to this a survey of milk in Delhi market by the very same FSSAI which has shown that more than 70% of milk samples tested were sub-standard though it was not determined whether they were also unsafe. Imported foods from where ever they are coming must have regulatory standards on par with India made counterparts and the importers have no business to cringe on this issue. No self respecting government can shirk its responsibility to wards its citizens by diluting the standards to satisfy the industry.


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

IS FOOD TECHNOLOGY A WEAPON FOR GLOBAL DOMINANCE? -MAY BE!

Technology is the driving force for achieving prosperity and power among the comity of nations and when it comes to food technology it can make any country prosperous if rightly used. In fact abundance of food can turn people into workforce with high productivity and innovation capability. Take the case of America, considered the richest nation on earth, measured by any yardstick. If its armed forces can deter potential adversaries from any part of the world from hostile action, its food production base is of such size that no other country can ever come near to its pre-eminent position. It is said that foods wasted by the American population every day can support the food needs of the entire world and that is the magnitude of its prowess. The free economy has promoted competition spurring innovations which further lead to more capacity building. Here is a commentary by a dispassionate observer regarding the food "power' of this country which makes interesting reading. 

"Food technology is the foundation of any country's prosperity. Not coincidentally, the United States is both the most prosperous country in the world and its biggest food producer. Today, it's the biggest per-capita exporter of food by nearly double—the next country on the list, France, produces only about half as much. In fact, the American food system has created so much abundance that it literally wastes more food than many countries produce. Americans actually throw away about half the food that is harvested for them. By the numbers, American consumers spend a trillion dollars a year on food, which is roughly split between supermarkets and restaurants. About half of that restaurant amount—a quarter of a trillion dollars—is spent on fast food. It should be no surprise that Americans have some of the highest caloric intake on the planet, as this map illustrates. It should similarly not be a surprise that many of the world's biggest companies are American food producers. Pepsi, Kraft, Coca-Cola, Tyson Foods and McDonald's are Fortune 500 companies that form the backbone of an industry that is worth nearly $5 trillion dollars, or around 10% of global economic output. With so much money at stake and the competition between producers so fierce, there is constant pressure to innovate. Whether it's creating new and better food products or distributing, transporting, packaging and selling them more efficiently, technology is at the heart of everything we eat. It indeed manifests itself in ways we hardly notice thanks to the passage of time. Consider that in 1965 it took around an hour to prepare a meal. By the mid-nineties, thanks to processing, packaging and new cooking technology such as the microwave and better ovens, that preparation time was shaved in half. That means more time to get on with being prosperous.Some would point out that all of this excess has resulted in an obesity epidemic in the United States, but that's only partially true. The World Health Organization identifies a sedentary lifestyle—also known as lack of exercise—as a major cause of obesity, so it's not all the burgers' fault. Even still, as with all technologies, food advances have solved many problems and introduced new ones. One final aspect of food technology, which I explore in my book, Sex, Bombs and Burgers, is its use by the United States as a weapon, figuratively speaking. The biggest driver of war, terrorism and conflict is poverty, which is usually found in places that don't have enough food or where it isn't distributed properly. By eliminating hunger, countries also eliminate the main motivating factor for why people enlist in conflicts. A happy and well-fed populace is a largely peaceful populace'.

Another view of America's food power is that a substantial population in many parts of the world is suffering from hunger, malnutrition, under nutrition, diseases and poverty because of the concentration of resources in this country. Every policy involving food orchestrated in the US has its own ripple effect on the food situation in many countries. The Gasohol policy requiring blending of gasoline with ethanol diverted valuable food corn into alcohol production affecting global corn prices. The gigantic agricultural subsidies showered on rich farmers of the US made the farmers in the third world poorer and poorer because of distorted farm produce prices in the global market. There are many other instances when American domestic policies hurt the food situation elsewhere in the world. While strong food technology can definitely empower weak nations to achieve unimaginable heights, the burden of inputs will cost them very heavily unless supported by liberal economic aid. America must work towards this goal in the interest of peace on this planet.

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

PRESERVED "DESI" FOODS-THE "MEISHERI" MAGIC!

Dehydration was the main process once upon a time to preserve many food materials, especially fruits, vegetables and nuts. Sun drying was the cheapest mode while large dehydration plants also were working for commercial drying purposes. Sun dried fruits made in different countries which include raisins, dates, plums, apricots etc are marketed world wide attracting very high prices. Sun drying is also the frequently used process for preparing dry fish in coastal areas. However dehydration as a food processing technology lost its utilitarian value after the advent of more efficient technologies like canning, refrigeration, freezing, aseptic packing, irradiation, etc and it is more or less confined to tropical and temperate fruits only. Freeze drying where drying takes place at sub-zero temperatures is supposed to give a finished product with superior quality and some foods are processed to a limited extent using this process. High capital investment, high cost of processing and subtle changes in texture during the drying process make this technology less preferred by the industry. Against such a background comes the news about the development of a drying technology by an IIT trained entrepreneur at Mumbai which is claimed to give superior quality finished products and it is interesting to read the news to have a hang of it.

"More than 3,000 mothers like Prithi, from across Mumbai, come to Meisheri to send food to loved ones abroad. What sets Meisheri's service apart from other "heat and serve" products is that the food retains its nutritional value, flavour and taste and there are no preservatives added. The service is so customised that Meisheri often has mothers show him exactly how much their sons and daughters eat at each meal so that he can tailor the food packets accordingly and avoid wastage. The idea was seeded when a friend complained to Meisheri about how her daughter had lost six kilos after going to study in the US. "I thought that it was important for our children to be well-fed when they are studying," he explains. And so the first "meal pack" was born. He has since dehydrated all kinds of dishes: from khichdi, biriyani (and its raita accompaniment), gajar ka halwa to idli and rajma. His busiest month is August, just before the students depart for their fall academic semester".

Though the entrepreneur has not revealed the secret of the process, it is known to be based on slow drying with a cold air which ensures that the product is not exposed to drastic temperatures which can destroy the texture and some of the thermally unstable nutrients. Though this entrepreneur has been hawking this technology for the last two decades, there doe not appear to be any industrial plant working any where using the same. The fact that he has been catering to families around Mumbai tells its own story viz the plant design is limited to a few kilogram processing capacity. Some years ago this process was considered highly suitable for drying of many herbs which contain heat labile active constituents but why this has not taken of in a big way, considering its advantages, is not clear. The credibility and viability of any new technology can be proved only when it is used for manufacturing commercial volumes and products marketed successfully.

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

THE PARADOX OF SAFETY VS REALITY!-AMMONIATED BEEF

The latest controversy centering around Ammonia treated Beef in the US offers a lesson to all involved in food processing and marketing. While lot has been written and spoken about food safety, a phenomenon just emerging indicates that consumer does not consider the safety standards by the government as gospel truth. While use of Ammonia to "disinfect" meat products to achieve freedom from pathogens like virulent E.coli, Salmonella etc is a perfectly legal practice, consumer does not seem to think so as reflected by the increasing reluctance on the part of major industry players to use these materials in their finished products. It was not so long ago that same thing happened with BPA containing plastics and their use by the industry though BPA has not yet been found to be harmful. These instances go to show that consumer is really the king when it comes to "disciplining" the food industry! Here is a report on the issue concerning progressive unpopularity of Ammoniated Beef in the US.  

"If you don't want bacteria in your food you have to treat it," he added. "This is a good ingredient and a very effective intervention. It's almost like some thing's been taken out of the arsenal that shouldn't have. And as a food safety guy, that bothers me." As many in the meat industry have pointed out, ammonium hydroxide is only one of many processing aids or "safe and sustainable ingredients" approved by the government's Food Safety and Inspection Service to reduce and eliminate pathogens on raw meat products. FSIS has a 52-page list of approved chemicals companies can use to treat raw meat, poultry, and egg products -- many of them can be used without any labeling on the package because they are technically considered a process and not an ingredient. "If consumers and restaurants are up in arms about the use of ammonia and can potentially drive a company out of business by their actions, I can only wonder what they are going to do when they look at the other chemicals in use to try and protect us from foodborne illnesses, chemicals like liquid chlorine and lactic acid just to name a couple," said Raymond. "There are just certain unpleasant realities of how meat is processed in this country. Those of us with farm backgrounds maybe can accept them a little more readily than someone who has led a life sheltered from these realities." The tension between widely used food safety interventions and concern about chemicals in food will surely continue. Recent polling, sponsored by the food industry, suggests consumer confidence in food safety is slipping. At the same time, surveys reveal consumers consistently list chemical and pesticide use in food production as a top concern. "All new food safety technologies must get through the ultimate filter - and that is consumer acceptance," notes Caroline Smith DeWaal, food safety director at the Center for Science in the Public Interest. "Just like irradiation, a potentially life-saving technology to kill pathogens in meat can still face rejection by consumers, who are anxious to provide the best food for their families. The rise in demand for organic and local foods shows that consumers often go outside pure safety considerations to evaluating where and how the food was produced."

Another perplexing question that will haunt the industry is what is the next process aid that is going to be ostracized by the consumer based on information and perceptions that need not necessarily be true. One must recall the fate of gamma irradiation process which was safety cleared globally long ago but the technology is still languishing for want of takers among the industry because of a strong perception that consumer would not patronize irradiated food products due to its perceived association with radioactivity! At a time when more and more people are moving towards organic foods, the addition or deployment of chemicals during the processing stage will turn away consumers genuinely concerned about their health as well as that of their families. The powerful lobby of activists campaigning against food additives and process aids will have a profound effect on the psyche of the consumer which does not bode well for the industry and it has to see the writing on the wall and prepare for massive changes in the present processing practices to satisfy their restive constituency in the coming years.

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