TACKLING AFRICAN FOOD PROBLEM-A NEW INITIATIVE BY THE INDUSTRY

Big industrial groups dominating the food processing sector are invariably labeled as inimical to the interests of the consumers and the bitterness between the two is so severe that recently there was even a suggestion to bracket food industry with tobacco industry. Possibly such an attitude is gaining ground because of the presumed association of most products churned out by this industry with obesity and many health disorders common in wealthy countries where processed foods constitute more than 80% in every day diet. The so called "junk foods" with empty calories and practically no useful nutrients are becoming staple foods of many consumers because of the low price and massive promotion by their manufacturers. Against this background it is refreshing to hear about the positive role being played by a few food giants in helping to tackle the poverty and malnutrition problems in the African continent. Here is the interesting story coming out of the US with support from the government.

"For General Mills, a key way for us to have an impact [on global poverty] is by sharing our food technology expertise," said Powell. "I am honored to accept the Global Citizenship Award on behalf of General Mills, and specifically, the more than 300 volunteers who have stepped up to make this effort a reality. Through their work, and the meaningful support of our partners, we are making a measurable difference." Powell went on to highlight the passion of several employee volunteers and shared excitement about his upcoming trip to Africa to meet with food processors and small-holder farmers involved with PFS. Also in attendance at the event were several Minnesota dignitaries, including Sen. Amy Klobuchar, Rep. Erik Paulsen, Rep. Keith Ellison and Rep. Betty McCollum. Powell thanked each of them for their engagement in fighting hunger and addressing human rights issues in Minnesota and around the world. PFS is curren"tly working with 30 food processors on 77 projects in Kenya, Zambia, Tanzania and Malawi. As these food processors grow, they are able to hire more workers and buy more raw materials from small-holder farmers. With more income, the farmers can pay school fees, access better medical care and start businesses. During his remarks, Powell thanked Cargill, DSM and TechnoServe. All work collectively with USAID and General Mills to fight hunger in Africa through PFS. Cargill and DSM joined PFS in 2011 and are critical partners that have helped expand the nonprofit's reach and depth of technical expertise. TechnoServe, a U.S. based nonprofit, helps facilitate and manage PFS projects locally in Africa".

USAID, one of the largest public supported food assistance programs in the world, has done yeoman service to bolster up the hunger fighting efforts of the developed countries and has already poured billions of dollars to make its presence felt in many poor countries in Africa, Asia and South America. Though it has been criticized for its bias in favor of American interests while carrying out these programs, the fact still remains that it has helped saving thousands of human lives through significant financial and other inputs from that country which is definitely a sacrifice measured by any yardstick. Having wealth is one thing but having the "spirit of giving" is another thing and the US deserves some appreciation from the world community for this gesture. What is surprising is the involvement of the private sector in this program under the PFS flag and financial and technical contributions from much maligned companies like Cargill, DSM, General Mills and many food processors in the US in executing several projects in Africa may give them an image make-over among consumers.    

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

ANTI-OBESITY PILL- SAFETY CLEARANCE ON CARD

In a desperate move to arrest the rapid spread of obesity epidemic, there appears to be a concerted move to choose a different approach in the US which is in the forefront when it comes to population with over weight and obesity. Though the major factor responsible for this undesirable development can be attributed to consumption of low quality and high quantity foods by the people, very little progress has been achieved in "persuading" the citizens to eat only healthy food, that too moderately and to be physically active. Industry, especially the Drug manufacturers, cannot be faulted if an opportunity opens up to peddle drugs that can control obesity and this is what is happening in the US. A drug like Qnexa, rejected two years ago, has made a stunning come back and with the likely of approves by the FDA soon, a multi billion industry is going to be spawned. Here is a take on this interesting development. 

"A federal advisory panel on Wednesday overwhelmingly recommended approval of what could become the first new prescription drug to treat obesity in 13 years. The advisory committee to the Food and Drug Administration voted 20 to 2 that the benefits from the weight loss provided by the drug, Qnexa, more than offset the potential risks of heart problems and birth defects. The strongly positive vote, which was not widely expected, represents a stunning comeback for Qnexa and for its developer, the drug company Vivus. In 2010, the same advisory committee, with a somewhat different membership, recommended 10 to 6 against approval, and the F.D.A. then rejected the drug. Some committee members who opposed it last time said they were reassured this time that steps would be taken to minimize the risks, such as by making it hard for pregnant women to get the drug. They also seemed persuaded by the view expressed by Vivus and by some obesity specialists who testified at the hearing that obesity itself causes health problems and that there is a pressing need for treatments. "There is an urgent need for better pharmacologic options for individual patients," said Elaine H. Morrato, an assistant professor at the University of Colorado, Denver, who voted no in 2010 and yes on Wednesday. "I believe that Qnexa demonstrated a meaningful efficacy benefit and that there are consequences to nontreatment of obesity," she said. The F.D.A. is expected to decide whether to approve Qnexa by April 17. It usually follows the recommendations of its outside advisers, but not always. In 2011, it rejected a different obesity drug that had been endorsed by the advisory committee".

It is not clear why the new drug is going to be permitted now, though not much additional data has been provided by the manufacturer regarding its safety. Is it possible that the new members of the advisory committee are influenced by considerations other than consumer safety in gloating over the side effects of this drug reported in some quarters? One consolation is that this new drug will be available only on prescription and will not be accessible to most people easily. Of course one an expect the manufacturer to overwhelm the medical community with sustained promotional programs and the drug may become the most frequently prescribed one within a couple of years. What catastrophe this will bring about in the long run remains to be seen. Now Americans will have the luxury of "having the cake as well as eating it" with no worry about the consequences!

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

BUDGET EXPECTATIONS-INDUSTRY SPEAKS

Like a ritual every year the Finance Ministry consults various stakeholders in Indian economy for getting new ideas while formulating the annual budget though very few suggestions find they way in the eventual budget when it is presented. Besides many individuals and organizations express their unsolicited views, pleas and ideas, probably with good intention. This years budget, scheduled for placing before the Parliament in the first week of March, is also going through the same routine and what is going to come out remains to be seen. FICCI, the apex body that represents the entire manufacturing sector has sought several fiscal measures to strengthen the food processing industry, most of which seems to be reasonable and justified. Here is a take on the demands being made by this industry body to the government on the eve of budget presentation this year.   

"With regard to the food processing sector, on top of the FICCI agenda is reduction in the current 10 per cent rate of central value-added tax (CENVAT) on a number of categories of items produced by the sector. Further, FICCI wants the finance minister to put packaged drinking water, a common man's product, in the nil category, and exempt biscuits from VAT, or at least lower the rate of VAT on them. It opines that a total macro view is necessary instead of focusing on the revenue-generating potential of levying excise duty on products. But if the government is unable to do away with the excise duty completely even after taking the revenue aspect into account, it must reduce the excise duty in a calibrated manner. This, it says, should be done in two phases: it should be brought down to four per cent in the first phase and reduced to zero in the second. FICCI believes that biscuits should be treated as merit goods and therefore be secured in a more rational manner, as is done in the case of bread. After all, biscuits are a product of mass consumption across India and cut across all economic groups and geographical boundaries. They are eaten in larger quantities in the rural areas of the country and the brands that are sold at lower price points find more takers in the lower-income group". 

One of the perennial demands of food processing sector has bee to make this industry zero tax sector with the sole intention of making processed foods cheaper, affordable and acceptable to larger segment of the population. But such sensible pleas have met with stubborn refusal by the government which is more concerned with revenue generation than the welfare of the industry as well as the consuming public. Imagine the potential for the food industry to grow fast and on an exponential pace, if the price of the products is reduced dramatically through removal of all taxes! Think about the benefits the country can derive in the agri-horticulture sector and employment creating opportunities through such a fiscal measure! To some extent the government deserves applause for its progressive tax abating policies on packaging materials which contributed to dramatic expansion of small packs market in the country with thousands of foods available to low income consumers at prices as low as Re 1 to Rs 5 per pack. Same enlightened policy is necessary for bringing out the full potential of the food industry by expanding their reach into small income groups of population through reduction in prices through zero taxation.

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