NEW NON-TARIFF BARRIER IN THE US-IMPACT ON INDIAN EXPORTS

It is but natural that all sovereign countries in the world are concerned about the health and safety of their citizens and putting in place measures to ensure that, is their unquestionable right. That conceded, is there any justification for a country like the US to take decisions unilaterally to put many importers from other countries, especially from the third world, in difficulties by raising the bar too much. Latest to emerge is the new rule that requires every importer from other countries to register their facilities once every two years which is a laborious process. When quality and safety assurance systems like HACCP, ISO 14000, SAP etc are now available for application in all countries, is it not possible if such accreditation and inspection are insisted upon for products originating from each country? How is it possible for small scale exporters from India to go to the US and spend their time and money to deal with the bureaucratic set up there entrusted with registration. This is definitely a non-tariff barrier to put the exporters from developing countries in a disadvantage and must be referred to WTO. Here is a take on this new development which will have far reaching implication on Indian exports.

"The US may ban import of Indian food and dietary supplements if food companies fail to renew their Food and Drug Administration (FDA) registration by the end of this year.  "The US administration, over-cautious about probable acts of terrorism, has made it mandatory for all facilities that manufacture, process, pack or hold food for human or animal consumption in the US to register with the US FDA," said an official of Agricultural and Processed Food Products Export Development Authority (APEDA), a government body which overlooks exports of agri and food products in the country.  The companies will then have to renew their registration every two years to continue their shipment to the US. Food from an unregistered foreign facility would be held at the port of entry unless the FDA directs it to be moved to a secure custody.  The new rule effective January 1, 2013, can create a non-tariff barrier for Indian food products companies, which exported more than $3 billion worth of food to the US in 2011.  The fresh registration rules will be applicable to all food products, all processed and manufactured products, and animal products. Under the new Food Safety and Modernisation Act (FSMA), FDA is to establish a "reliable system" that uses third-party audits conducted either by foreign governments or other third parties to help ensure food safety for food destined for the US. It will help FDA conduct investigations and surveillance operations in response to food-related emergencies". 

There is one aspect about which food industry in India must concern itself, that is the traceability question that haunts food safety agencies world over. Probably Americans are more concerned about the logistics involved in pin pointing the source of a food poisoning episode as and when they occur in there. Present manufacturing systems currently prevalent in most countries do not allow such investigations to proceed too far when there is a blind alley while pursuing the origin and credentials of many suppliers of various ingredients used in the manufacture of a food in a particular factory. It is better Indian food industry collectively thinks about the "one step backward and one step forward" strategy to document the full particulars of immediate suppliers of raw materials and ingredients and immediate buyers of their products. If every player follows this strategy traceability becomes easier though it will take some time to complete the investigation by working through the chain so formed. APEDA which is doing an excellent job in its role as an export facilitator must address this issue more seriously.

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

AIR LINE FOODS MORE RISKY?- NEW FINDINGS

Air travel, especially of long duration, is both tiresome and boring. In-flight music and video entertainment facilities make such travels some what tolerable while the foods served are supposed to be of mouth-watering quality. Modern Air Lines companies even offer diverse menu options to cater to different ethnic and cultural back ground of potential travelers. It is in this context that recent reports damning the safety of these foods emanating from the US are raising some alarm among travelers using US Carriers. While FDA is to be complimented for bringing to surface gross violations of hygiene and sanitary standards in kitchens where the foods are prepared for supply to the air lines. What is appalling is the response of the Carriers brushing aside these allegations lightly and probably FDA may have to take severe deterrent action against such repeat violators immediately lest the passenger confidence on airline foods is shattered. Here is a gist of the report culled out from reliable international media which provides a sad reading.

Airplane food has long been the butt of jokes for being bland, unimaginative and generally unappetizing, but now there is evidence to suggest that the meals served by airlines are not just lackluster, but they might actually make passengers sick. Inspections of airlines and outside caterers conducted by the Food and Drug Administration have revealed facilities crawling with mice, roaches and ants, and food preparation areas swarming with flies. According FDA health violation records obtained by ABC's 20/20, over the past four years, there have been more than 1,500 violations in the airline food industry. The federal agency said that 'significant' problems were found at a much higher rate than in other industry it inspects.

No one is arguing that in-flight catering is an easy job but unless some minimum safety precautions are taken health of many passengers may be adversely affected. It was not along ago that under recessionary trends, air traffic volume started declining and with fierce competition among the players to attract traffic, food was being considered as an instrument to cajole passengers to travel by air. There were even a few reports that some major air line companies were planning to upgrade their menu to offer very high quality preparations on par with 5-star restaurants. Alas that proved to be a non-starter once the air traffic became normal. All air line must understand the basic fact that passengers are not yearning for home foods while they travel but they will never compromise with products prepared in infected and infested kitchens which can put their life in danger. It is time that kitchens preparing foods for air line passengers are brought under a global safety regime and protocols that can be easily monitored by competent food safety specialists on a 24/7 basis.

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

  

MOVE OVER SYNTHETIC SWEETENERS, HERE COMES STEVIA!

Stevia sweetener is making waves these days riding on a success unparalleled in the history of non-nutritive sweeteners. Food industry seems to be bowled over by the potential this sweetening ingredient can have in the coming years, its biggest asset being the "natural" tag it can claim as it is derived from the Stevia plant leaves through well known aqueous extraction process with no residue problem. Why there was so much delay for this sweetener to catch the attention of the industry and allow others like aspartame, saccharine, sucralose  etc to dominate the markets, till remains a mystery because the product was in the market for the last 30 years. Stevia industry, if one can call it so, was sustaining because of patronage from a single market, viz Japan and it was only after 2008 that it was recognized as a good sweetener. Probably approval by FDA of the US could have tilted the scale in favor of Stevia and the market got further strength after winning approval from the EU last year. Stevia industry has become an organized one with about a dozen players sharing the market and if FAO projections are to be believed this sugar substitute may capture more than 30% of the market within a few years. No wonder that more and more investors are entering this field hoping to catch a significant part of the pie and establish successful business. Here are some details about the Stevia industry as perceived by one of the latest entrants in California, USA.   

"The pace of new stevia product introductions is staggering, as more than 500 new products were introduced world-wide in 2011 alone. Some have experienced considerable success, such as Coca-Cola's Vitaminwater Zero brand that achieved approximately $110 million in sales in its first year. This success has occurred despite the industry still being in its infancy. To date, more than 85% of U.S. consumers still have never purchased food and beverage products that contain stevia. But, consumer awareness of stevia is rising fast, with the percentage of consumers that know of stevia growing from 32% in 2009 to 57% in 2011. Such rapidly increasing consumer recognition bodes well for stevia's continued success and market growth. This is especially true now that regulators in all major markets have approved its use, which no longer holds back the market potential of what many consumers and industry insiders have long considered the "holy grail" within the sweetener market. Jubilation over the success of new stevia products and the approval of stevia in the U.S. and Europe should be tempered with reasonable expectations. With over 10 stevia manufacturers world-wide, not every company will be an overnight success, and current growers and processors of stevia may fall victim to new market entrants, sophisticated new technologies, and an overall modernization and globalization of a fragmented industry that was formed more than 30 years ago and has until now principally catered to consumers in Japan. Technical challenges also exist that could eventually present obstacles to the rapid growth and expansion of the stevia market".

It is remarkable that the source of Stevia sugar known for centuries has remained in obscurity till about 3 decades ago and the search for non-caloric sweeteners because of wide prevalence of diabetes and obesity, brought to the fore its usefulness . Rest is history! The open arm welcome by the US food industry which is turning out thousands of products incorporating this ingredient either to replace natural sugar and HFCS or partially substitute them reflects its ready acceptability and the success story is likely to repeat in Europe also after the approval it got last year. America is a country where one third population is obese and more than 50% are over weight and probably Stevia can be considered God-sent considering the dire need of the population to cut down on calories for their very survival. There are even suggestions by really concerned health experts to blend natural sugar with Stevia to increase the sweetening intensity of the former and market the same as a low calorie sweetener. With Stevia boasting of a 300 fold sweetness compared to natural sugar, the scope for such products is unlimited and governments world over must consider favorable policy interventions to encourage such innovative products. The added bonus will be sparing of millions of acres of land, presently being used for cultivation of the water intensive sugar cane and sugar beets, for growing other more nutritionally beneficial crops.  

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