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

FISH IN THE DIET-NEW ALARM ON ITS SAFETY

During the last two decades, role of fish in the diet assumed critical importance because it is a rich source of Omega-3 fats considered crucial for preventing heart disease and other related disorders commonly encountered in modern society. Besides, unlike red meat fish meat is not a source of cholesterol making it safe for regular consumption. However the oceans where marine fish breed, are getting heavily polluted with all types chemicals, the most dangerous being Mercury which is known to cause damage to the brain if consumed beyond a limit. Presently an upper limit of 1 ppm is prescribed in the US while many other countries have fixed the tolerable limit at 0.5 ppm. Recent reports implicating Mercury even at lower limits in human disorders call for a rethinking about the safety limit of this toxic mineral. Here is a take on this new revelation which cannot be brushed away that easily.

"Scientists say that consuming fish may be more hazardous to your health than you think, according to new reports published this week. The reports, produced by the Biodiversity Research Institute and an international coalition of environmental campaign groups called the Zero Mercury Working Group, say that mercury contamination of seafood is not only on the rise across the globe, but that "smaller traces of the toxic metal may be enough to cause restricted brain development or other health problems for humans who eat them." "The more we look at mercury, the more toxic it is," David Evers, the executive director of BRI, told the Portland Press Herald. "Threats from mercury are greater at lower levels than we have thought in the past." As the Global Post notes, scientists have long warned consumers about the potential dangers of mercury in fish and other seafood. However, the new reports have revealed that the guidelines for safe seafood consumption in place in the U.S., Europe and elsewhere may now be out of date. "Levels of [mercury] exposure that are defined as safe by the official limits, are actually having adverse effects," environmental health scientist Dr. Edward Groth, who authored one of the three reports, said at a web conference, according to the Post."These are not trivial effects, these are significant effects. There does appear to be evidence now, fairly persuasive evidence, that adverse effects occur from normal amounts of seafood consumption," Groth, who is an adviser to the World Health Organization, continued".

Mercury is thrown into the atmosphere by burning coal in power plants and when the atmospheric mercury is absorbed by the water in the ocean, algae accumulates the same in their cells which then is passed on to fish which feasts on it. When such fish reaches the dining table, mercury is passed on to the humans through their foods. So far consumers and the safety agencies were sure that most fish varieties harvested to day have far less than 1 ppm, except in case of tile fish or Sword fish and crabs which may contain up to 1.5 ppm. The new finding that even low levels of mercury can adversely affect the functions of the human brain is alarming and scary. Unfortunately coal happens to be the most abundantly available cheap source of energy and economic compulsions prevent banning coal powered power plants every where in the world. What is the option before mankind under such circumstances? Banning fish consumption altogether? Not a feasible option. May be curtailing the fish consumption to levels just enough to meet the needs for Omega-3 fats is a possibility but will it be acceptable to the consumers and the fish industry in general. Technological intervention to trap the mercury in the smoke that is spewed by the power plants is another alternative that can be considered.  

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

ABOLITION OF "FAT TAX" IN DENMARK-WHAT IS THE LESSON LEARNED?

"Taxing your way to health" is a favorite slogan for may health purists, the idea being to make unhealthy foods too costly for the consumers to buy in the market. It was Denmark, one of the more affluent countries coming under the umbrella of European Union which was the first nation to introduce a fat tax on products containing more than a certain percentage of fat in the product marketed by the industry. But surprisingly it withdrew this new tax recently after coming to the conclusion that such punitive taxes just do not work. A larger question that remains unanswered is whether the tax policy, tried out in a country with no borders as that exist between independent countries, could have been more successful in any other country? For example, what would have been the result if such a policy was tried out in India where consumers cannot go to a neighboring country like China that easily and which is the world capital of "cheap" consumer goods, Bangladesh or Sri Lanka or Nepal? Probably it would have had a better chance of success. Here is a report about the experience of Denmark in imposing a fat tax and later withdrawing it.

"About a year ago, the Danish government tested out a policy never before seen in the world. It implemented an across-the-board tax on all foods with a saturated fat content above 2.3 percent, with the hopes of reducing consumption of unhealthy foods. But it didn't quite work that way. Some Danes did indeed switch to lower fat cheeses  and dairy products, The Wall Street Journal's Clemens Bomsdorf reports. But a lot of them simply began to do their grocery shopping internationally, heading to countries that didn't levy a fine on fat: There is little evidence the tax impacted consumers financially, but it did spark a shift in consumer habits. Many Danes have bought lower-cost alternatives, or in some cases hopped the border to Germany, where prices are roughly 20% lower, or to Sweden. >The Sky supermarket located in northern Germany was one company benefiting from the trend. Last week, more than half the cars in the crowded parking lot had Danish license plates. >"We did not use to buy cheese here, but the price difference for our favorite type is now more than 30%," Anitha Nissen said, while helping her husband load groceries into their silver Suzuki. The Danish couple now crosses the border three or four times a year to stock up on goods. The Danish government announced Saturday it would abolish the fat tax as part of budget negotiations there. Denmark's experience suggests one of the big challenges with regulating unhealthy foods: People can always switch to an alternative, that's a bit less expensive".

There are two consumer items in the world which are taxed heavily-Cigarette and Alcohol but what has been the experience? It is true that neither consumption of alcohol nor cigarette has disappeared though a few were forced to reduce the consumption for economic reasons but is the number of those stopping the consumption significant enough to make an impact? This point requires in-depth analysis to shape any future options mankind may think about in tackling these undesirable consumption trends. Besides fat, other food ingredients like sugar and salt are also under scrutiny as they are implicated in many human disorders and a coherent action plan is the need of the hour for overcoming such food related health contingencies in future. Education at an early stage regarding the adverse consequences of consuming unhealthy foods, social pressure, public policies and incentives by the government may still have a chance to de-addict people from unhealthy practices.

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

SMALL IS UGLY, BIG IS BEAUTIFUL-THE AMERICAN FOOD INDUSTRY PHILOSOPHY!

During the recent discussion on the new FDI policy being implemented by Government of India one of the strong arguments used to support the influx of foreign retailing giants was that such a policy would help the farmers of this country to get a better price for their commodities. Here is a contradiction of the above assertion coming from the very same country which has some of the biggest retail giants based there. The sum and substance of the report below is that retail giants will always squeeze their suppliers whether farmers or processors as their focus is is to cultivate the consumer with lowest prices ever possible.   

"When ConAgra ponied up about $5 billion for St. Louis-based Ralcorp this week, the Omaha-based conglomerate did something that food companies have been doing for a while: It got a lot bigger. ConAgra Foods Inc., which produces some 60 brand name products — everything from Slim Jim sausage snacks to Manwich mixes to Wesson cooking oil — will now become one of the largest food companies in the world, with about $18 billion in sales, up from $12.3 billion in the fiscal year ended on May 11. Globally speaking, that would put ConAgra among the top 20 food companies in the world, up from its current spot of 31 and well ahead of food juggernauts General Mills and Kellogg. But ConAgra's new neighbors on the list of global food-and-beverage big shots probably won't be there for long. In a turbulent food marketplace that has struggled in recent years, companies are trying to out-big each other — or, at least, redefine what they are, by splitting, spinning off and window-shopping for each other's discards".

Also well known is that in countries like the UK and the US, less than 30% of the consumer dollar goes to the farmers while 70% is gobbled up by the retailer who is a glorified super middle man! Consider the situation that is prevalent in India where farmer gets about 70% of the consumer rupee, at least in two organized sectors like sugarcane and milk. A million dollar question that deserves an honest answer is whether foreign retailer chains would squeeze the already famished farmer of this country through strategies they have perfected in different wealthy countries. No wonder that progressive states like New York are coming out increasingly against such monolithic giants whose agenda is solely to increase their margin by what ever strategy it takes with no consideration for the development of the country where they are allowed to operate.

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

IMPROVED STEVIA-A NEW DEVELOPMENT

Though 80% of total sweeteners produced in the world comes from sugarcane, sugar beets and corn starch, the so called non-caloric sweeteners, both synthetic as well as natural are rapidly catching up with the former, growing at a frenetic pace. This multibillion industry boasts of a few well established synthetic sweeteners like Aspartame, Saccharine and Acesulfame, besides semi synthetic ones like Sucralose and Erythritol  while Stevia and Monk fruit represent the natural ones. Of all the non-caloric sweeteners, Stevia glycosides extracted from the leaves of Stevia plant seem to have created a sustained interest among the consumers, probably because it is truly natural. What is holding back Stevia glycosides from overwhelming the food processing industry so far is the bitter and licorcie like after taste noticed in most commercial preparations available in the market. This drawback is reported to have been neutralized by recent development of technology to separate the sweetest component of the glycoside cocktail present in the crude extract, viz Rebaudiside A glycoside (RebA) which has practically no after taste. Here is a take on this new development with some implications for the food industry world over, trying to create products with low sugar to cater to diabetic and weight watching consumers.

"Tate & Lyle (TATYY.PK), the British $5.7 billion market cap global ingredients and food solutions provider recently introduced Tasteva ™, a stevia product the company had been developing for over two years. Tate & Lyle tested over 80 stevia extracts to understand the sensory profile and characteristics. It then isolated certain steviol glycosides to optimize the sweetness that did not have any of the bitter or licorice aftertaste that has been associated with early stevia products. The company claims that feedback from customers who have tried Tasteva shows that the product delivers a clean sweetness and a clear taste advantage over Reb A 97 and other stevia ingredients. According toJeremy Thompson, Director of Natural Sweeteners Product Management at Tate & Lyle, these advantages had been demonstrated across a wide range of food applications, including beverages and dairy. The company also found that Tasteva can cut the sugar levels in colas by 50% with no bitter aftertaste and no need for masking agents. This is a big step in the evolution of stevia because up till now cola manufactures were only able to reduce the sugar levels 30% before the taste was affected. Tate & Lyle sees Tasteva not just for beverages but for food manufacturers that are seeking sweetness from a natural source. Tate and Lyle introduced Tasteva Stevia Sweetener in Latin America, as part of Food Ingredients South America in São Paulo, and plans for more regional roll-outs in 2013".

With the metabolic syndrome disease, diabetes spreading like a wild fire and more than half the population in the developed countries being either obese or over weight, time has come to sideline the nutritive sugars, if possible, in favor of non-caloric counter parts and Stevia and Monk fruit fit into this bill. Of course whether natural sugar as known to day, will ever be replaced completely by one or more of the alternative choices is a question begging for an answer. However considering that no perfect match has been found so far to match natural sugar in terms of its chemical, physical and functional properties, it is unlikely that sugarcane, sugar beets or corn derived sugars will disappear from this planet for the next 100 years! At best industry may switch to blends of natural sugars and non-nutritive sweeteners for developing new products with untainted sweetness and the proportion to day is 50% to 70% of sugar in such blends which may come down progressively in the coming years with renewed research efforts.

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

THE "OMNIPOTENT" CAFFEINE-WHY THERE IS NO OVERSIGHT YET?

Caffeine, which is both a stimulant as well as an addictive substance, is present in beverage crops like Coffee, Tea and Cocoa. As consumption of these beverages increases the alertness of the consumer, there are millions who take them regularly every day though medical experts and health pundits frown upon its consumption by pregnant women and children. According to present thinking an intake beyond 300 mg a day may carry potential health risks for many people and this maximum recommended level is slowly being reduced to 180 mg per day per an adult. Recent reports about some deaths in the US being ascribed to consuming Caffeine loaded energy drinks highlight the piquant situation in which safety agencies find themselves. In absence of scientific evidence that implicates Caffeine as an unsafe food constituent and safe levels at which it can be ingested not arrived at, it becomes difficult to clamp a ban on the use of Caffeine in formulated foods and beverages. This situation seems to be encouraging many processors to use Caffeine as an ingredient in new formulations claiming some or the other beneficial effect for such products. Here is a take on this evolving situation which is receiving attention world over.

In light of new reports linking 5-Hour Energy drinks to several recent deaths, sleep-deprived consumers may need to find another source of packaged vigor. PepsiCo's Frito-Lay has an unlikely alternative: Cracker Jacks. The company is launching a new line of the sugary treats — aptly named "Cracker Jack'd" — that will contain caffeine, Advertising Age reports. The Center for Science in the Public Interest, which has previously battled such consumer products companies as MillerCoors Brewing Company and Airborne, claims the caffeinated Cracker Jacks violate federal food laws. "Boxes of Cracker Jack are famous for having a toy surprise inside," CSPI said in a Wednesday statement. "But what parent suspects that Cracker Jack might come with a surprising dose of a mildly addictive stimulant drug?" CSPI warned that if the government doesn't crack down on the upcoming Frito-Lay product, it could "set off a new craze in which manufacturers add caffeine to more and more varieties of foods and beverages."

Those who oppose use of Caffeine, often considered as a drug, cite the present US Rules which allow this chemical only in Cola beverages which may contain about 72 mg per a serving size of 12 fluid ounce. Unfortunately there is no mention about using Coffee solids or extracts in any food preparation which loophole is being exploited by the industry and there are such products already in the market providing more than 70 mg per a 2 Oz serving size. The argument by the industry that these products are targeted at adult consumers or the level of Caffeine is already declared on the label cannot justify putting in the market such potentially harmful food products. Probably it is time for safety agencies to revisit presence of Caffeine, either used as a chemical ingredient or through coffee solids and extracts and make the law relating to this more explicit.

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

LONG LIFE BREAD-NEW TECHNOLOGY

Bread making was an art or skill till about 5 decades ago. But enormous strides made by bakery scientists since then in developing more and efficient technologies and reducing the time required to make high quality bread products have resulted in taking guess work and gut feeling out of reckoning. But there is one area where little headway has been made and this is with regard to extending the shelf life of the product without adversely affecting its eating quality. Now comes the news that a bakery company in the US has come out with a claim that it can make bread with 60 days life! Here are some details about the above claim and in absence of much technical data it is very difficult to vouchsafe for the veracity of the claim.

"One of the biggest threats to bread is mould. As loaves are usually wrapped in plastic, any water in the bread that evaporates from within is trapped and makes the surface moist. This provides excellent growing conditions for Rhizopus stolonifer, the fungus that leads to mould. In normal conditions, bread will go mouldy in around 10 days. But an American company called Microzap says it has developed a technique that will keep the bread mould free for two months. At its laboratory on the campus of Texas Tech University in Lubbock, chief executive Don Stull showed off the long, metallic microwave device that resembles an industrial production line. Originally designed to kill bacteria such as MRSA and salmonella, the researchers discovered it could kill the mould spores in bread in around 10 seconds. "We treated a slice of bread in the device, we then checked the mould that was in that bread over time against a control, " he explained. "And at 60 days it had the same mould content as it had when it came out of the oven."

Making a product last long is not a difficult task if the sensory quality of the food product is not kept in focus. There are a few chemical preservatives available to day that can inhibit the growth of most microorganisms but such methods cannot prevent chemical or physical changes that occur in all foods at moisture levels beyond 2% at temperatures above zero degree centigrade. In a product like bread with a moisture content of 40% and under ambient conditions staling is bound to take place and according to present state of knowledge there are no fool proof technology yet to prevent staling. stale bread is characterized by crumbling and powdering with the texture of the product getting lost progressively in a matter of few hours. The new method reported above involves treatment of the packed bread with microwave radiation which is supposed to destroy fungal spores but whether it will affect the typical texture of bread adversely is not clear. Retrogradation of starch grains in the bread during storage is a reversible phenomenon and probably bread preserved with the method reported above may regain its texture if it is reheated under optimum conditions in a kitchen microwave oven.

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