Inclement Weather Conditions Hit Seville Citrus Trees and Fruit Hard by JENNIFER WILLIS-JONES Precip % Normal 29/1/2012-27/2/2012 and Broccoli Showing Damage

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Name,investor title, company confidence See page XX in branded businesses”

Geraint Rowe, partner, food & beverage, Gambit Corporate Finance LLC Fewer UK food industry M&As, p21

VOL.VOL. 00 40 No. No. 00 9 00 2 MARCHMONTH 20122011 Inclement weather conditions hit Seville citrus trees and fruit hard BY JENNIFER WILLIS-JONES precip % normal 29/1/2012-27/2/2012 and broccoli showing damage. In exposed northern areas tem- HARSH frosts and drought peratures fell to -5° celsius, have caused up to EUR100 affecting almond flowers. million (USD134.3 million) Kyle Tapley, operational mete- worth of damage to agricul- orologist at MDA Information tural crops in Seville, Spain Systems, confirmed to FOOD- ,with oranges and manda- NEWS that Spain has indeed seen rins thought to be the most inclement weather conditions of affected. Growers are still late with the drought getting assessing the damage to worse over the past few weeks. other fruits and vegetables. “Spain has seen the most To make matters worse, there severe dryness, but dryness has are serious concerns over the been increasing across much of sharp fall in farm-gate prices, western Europe, particularly in making the industry almost the UK, France, and northern unprofitable at the moment. Pro- continued on page 6 duction costs are now far superior to raw material prices. Data shows that December IN THIS ISSUE 2011 was the driest it has been for frost damage is only visible some frost and drought this year, with at least 15 years, with no end in days or weeks after the event. losses adding up to EUR38 Global wine supplies to sight for the drought, which is A contact at agricultural organ- million in the province. The trees reduce further 5 likely to continue in 2012. This isation Asaja Sevilla told were also hit by the severe was followed by a mass of cold FOODNEWS: “At the moment weather conditions, which could China produced more AJC air which hit all of Europe at the we are still putting together a affect output in the coming years. than first thought 7 start of February and tempera- report studying the damage across A loss of 30% was seen in the tures fell to -7.9°C in some parts the entire region and we have region’s stone fruits as tempera- EU-Mauritius deal will aid of Seville, seriously damaging mentioned the damage that we tures fell below -4°C and affected tuna sustainability 13 crops. noticed immediately in the flowering, especially of early It is difficult to get an accurate province. varieties. Damage has been esti- Strong cannery demand for picture of the damage, however, as “The citrus crop, including mated at EUR40 million. Thai sweet corn 14 late oranges and clementines, is Artichoke, which is grown the one that appears to be the across some 300ha in the region Cashew market steady ahead most affected. For the rest we can and is most sensitive to the cold, of new crops 16 confirm that damage is not wide- has also seen some damage but it spread, aside from a small delay is still too early to evaluate. SunOpta to cut staff in of a week in harvesting. Not all Meanwhile, FOODNEWS has company reorganisation 19 areas will see this delay, so we also received reports of crops hit understand that the region’s stone by frosts in Lorca, Murcia. The ABF sugar sales lead to fruit and potato producers will not area is reporting losses in arti- positive outlook 23 have problems adhering to export choke and early season almonds, agreements and will be able to although exact figures are still China outlines food safety give a date for fruit arriving in all unclear. improvement plan 28 markets.” The councillor for agriculture, FOODNEWS was informed Ángel Meca, confirmed that arti- Italian tomato sector talks that up to 70% of oranges were choke was the most affected with proceed slowly 28 Frozen artichokes in Seville damaged by the combination of losses around 90%, with lettuce

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Notes on a scandal

VOL. 40 No. 9 2 March 2012 ISRAEL’s Pri HaGalil The lesson to be learned here is “However much of a cannery is certainly making a that however much of a labyrin- stand in face of the govern- thine, bureaucratic minefield food labyrinthine, bureaucratic CONTENTS ment’s refusal to pay a grant safety regulations may appear to be, minefield food safety which the company may or they are there for a reason. Precisely regulations may appear to INDUSTRY NEWS may not be due, but in sud- this was the subject of China’s denly sending its workers on recent five-year food safety stan- be, they are there for Soft drinks industry looks to unpaid leave, it is unlikely to dard plan. Lives were lost in the a reason.” New World for growth 4 make any friends. At such an melamine contamination debacle, early stage, one can only guess and yet years after the fact, traces ways. Diamond Growers’ account- FRUIT JUICE where this might lead, but it were detected in domestic milk ing mishap and the ensuing collapse does prompt the onlooker to products. With import stamps dou- of the Pringles acquisition, reported Dutch juice firm announces speculate on the lot of other bling as safety stamps in the eyes of on last week, is not a move which organic Fairtrade products 8 organisations involved in many consumers, it is a wonder that will be forgotten in a hurry. scandals. the Chinese dairy industry was not Perhaps the closest analogy to FRESH PRODUCE After hitting the headlines in laid to rest before the scandal itself. that of Pri HaGalil, however, is that Ghana has potential to November for reprocessing mouldy Similarly, the traces of carben- of the many tuna companies excori- apple sauce without taking the rele- dazim recently detected in Brazilian ated by Greenpeace for their fishing increase pineapple vant measures to remove toxins orange juice rocked the industry methods. The food is not actively exports 11 – that reprocessing mouldy food is boat, not to mention the FCOJ harmful, but some consumers may not, in itself, illegal in the US, is futures market. If some companies object to some aspects of the pro- CANNED FOODS neither here nor there – Snokist fruit break the rules, many will feel the duction, be it laying off workers or effects. These things do not subside fishing unsustainably. Often, little Chinese mushroom canners processors filed a Chapter 11 a matter of weeks later. The USDA, quickly; the reputational and finan- of the uproar trickles down as far as must upgrade equipment 12 which had a contract with the cial damage to be had is the average consumer, although the company to use its apple sauce in significant. effects may be felt at the supermar- TOMATO PRODUCTS school lunches, was keen to cut all Of course, not all company ket buyer level. Whatever the California competes with ties with it. Since then, the facilities gaffes involve the content of their outcome for Pri HaGalil, the have been acquired, but Snokist as a products – but a firm can still be left onlooker is left with the fact that Chinese tomato paste in corporate identity is no more. with egg on its face in a plethora of rocking the boat makes waves. Middle East 15 DRIED FRUIT & NUTS Do you see FOODNEWS’ daily email alerts? MOST READ… See below the most clicked-on daily news stories this week: Argentine prune sector considers imports in low 1 Carbendazim fears send FCOJ 6 Bank report names five juice production year 16 futures soaring again “mega-trends” 2 Brazil temporarily halts FCOJ 7 Israeli cannery closes and sends FROZEN FOODS exports to US workers on leave 3 Thai pineapple industry faced with US buyers switching to new “mountains” of stock 8 Grape juice concentrator – correction blackberry suppliers 19 4 SA canners upbeat as fruit harvest 9 Greek peaches cheaper than SA due goes smoothly to good supply WINE & SPIRITS 5 Dutch supplier offers Fairtrade/ 10 Citrus company hopes organics deal Brazil considers measures organic AJC combo will open US market to protect domestic wine industry 20 Contact us for your on-line password today call +44 (0)20 7017 4161 or email [email protected] BUSINESS INTELLIGENCE COMPANY INDEX G Willi-Food 5 Premier Foods 21 Fewer UK food industry M&As in 2011 but outlook 2 Sisters 21 Heinz 15 Pri HaGalil 12 improving 21 Ariza 8 Hormel 22 Profood International 17 Associated British Foods 23 WEATHER WATCH Inventure Foods 7 Raisio 21 Barentz 21 Jidvei 20 Sumol & Compal 8 Rain showers in California, Ben & Jerry’s 19 Joint Fruit Company 22 Sunopta 19 snow in New York 24 Charles Saunders 22 Lisa’s Organics 19 Sunprod 9 MARKET DATA Coca-Cola 6, 7 Olam International 17 Welch’s 8 Latest soft drinks and Del Monte Fresh Produce 11 PepsiCo 7 Wild 9 mineral water import Embotelladora San Miguel 6 Pinnacle Foods Group 19 Yoki 4 data 25 Frutarom 21 PIP Organic 6 Zetar 21

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Canned Foods 24 April 4 May

Juices, Purees & 19 June 29 June Superfruits

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house ad - full page.indd 1 21/02/2012 09:50:05 Industry News Soft drinks industry looks to New World for investment and growth BY JENNIFER WILLIS-JONES PepsiCo, this trend continued into A key trend in the sector has importantly, the refranchising of 2011. As a result, projected value been for health and wellness bever- these distribution rights could gen- THE global soft drinks mar- growth for CSDs is estimated at ages. The world’s thirst for protein erate billions of dollars for both ket’s modest recovery in 2011 6% over the next three years. drinks, probiotics and other func- companies to reinvest in higher was split between the Old Functional drinks are beginning tional drinks has led to a burst in growth BRIC markets. World markets of western to show signs of a slowdown in new product creations. The conver- This year should also see Europe and North America, developed markets, largely due to gence between soft drinks and growth in Asian companies, with where growth was slow due to the growing scrutiny of federal dairy beverages continues to attract Asahi, Suntory and Kirin all health concerns over high agencies and consumer groups global beverage companies such as making strategic acquisitions calorie carbonates, and the regarding the health claims made Coca-Cola, PepsiCo, Suntory and around the world. Asahi’s purchase New World BRIC markets, by functional drinks companies. Danone. In 2010/11, PepsiCo exe- of Schweppes Australia, Permanis according to a recent Rabo- The market opportunity for energy cuted a series of strategic deals in Indonesia and Independent bank report. drinks is shifting from developed starting with the acquisition of Liquors in New Zealand has The outlook for this year reflects markets such as North America and Lebedyansky, the leading juice enabled the Japanese brewer to continued challenges for global western Europe to Indonesia, company in Russia, followed by become a powerful competitor in soft drinks companies seeking to Malaysia and China, where per the purchase of Will-Bill-Dann, the Australasia. Tingyi-Asahi Bever- satisfy differing consumer needs capita consumption is less than one leading dairy company in Russia, a age’s recent acquisition of within these two divergent worlds. quarter than that of North America, joint venture with Almarai Dairy in PepsiCo’s bottling operations in North America, Asia-Pacific and and where consumers are increas- Saudi Arabia, the acquisition of the China could signal a future partner- western Europe are the top three ingly substituting more traditional Betyi juice and dairy business in ship between PepsiCo’s snack soft drinks markets, together sources of energy, such as coffee Egypt, and a joint venture in north foods business in China and Tin- accounting for over 70% of the and tea, with energy drinks. American with Theo Müller Group, gyi’s highly successful Master global market. North America is a leading German dairy company. Kong noodle empire. Kirin’s acqui- currently the largest soft drinks Expensive raw material Coca-Cola’s announced goal of sitions of Schincariol is a bold market in the world. However, The global soft drinks sector has doubling its revenues by 2020 pro- move into Brazil’s booming beer Asia-Pacific will surpass it by 2012. not been immune to the increased vides further impetus to also and soft drinks market, and illus- While much smaller in size, the volatility in raw material costs over explore new segments such as hot trates how important these BRIC eastern European and Middle the past several years. From 2007- drinks and soy-based beverages. markets have become to Japanese Eastern and African markets have 2011, sugar prices increased Given the size and scope of these beverage companies faced with a more than doubled in size over the 163.2%, corn prices rose 67.5% new initiatives, we are likely to see saturated domestic market. past five years and have become and PET resin grew 39.2%, while the increasing convergence of soft important growth markets for during the same period oil prices drinks and dairy beverages around global soft drinks. increased 21.6%. Soft drinks man- the world in 2012. As the fourth largest soft drinks ufacturers have been increasingly As regards bottling, over the Yoki nears sale market, South America has also squeezed by rising commodity past year Coca-Cola and PepsiCo THE owner of Brazil’s shown solid growth, driven by the costs along with higher energy, have both initiated transforma- renowned food and beverages favourable demographics and healthcare and insurance costs. The tional deals to consolidate their company Yoki is in advanced economies of Brazil, Mexico and Coca-Cola Company, for example, bottling operations in North negotiations on a takeover by Argentina. has estimated its annual increase in America, Europe and Asia. These General Mills, according to The growth of Asia-Pacific’s raw material costs will exceed transactions signal internal restruc- press reports in Brazil. Yoki soft drinks market has been driven USD800 million in 2011. turing for the North American soft founder Yoshizo Kitano is by strong consumer demand for It is fair to expect that further drinks industry in the period ahead, reportedly offering to sell the healthier non-carbonated bever- increases in ingredient and packag- as both companies seek to rational- company for around BRL2.0 ages such as ready-to-drink tea and ing costs will be passed onto ise and improve operational billion (USD1.1 billion) Asian speciality beverages. These consumers with higher retail prices efficiencies. because of a lack of a clear segments, although smaller in size this year. Brand owners appear to As a result, Rabobank is expect- successor and a family rift. than the carbonated soft drinks be better positioned to deal with ing both Coca-Cola and PepsiCo to The US company is expected (CSD) and bottled water segments, higher costs as they have greater begin selling or refranchising many to seal the deal that would have been consistently strong per- ability to pass cost increases of their company-owned territories allow it take control over the formers and will continue to through to consumers. Private label in the US to new or existing bot- Brazilian company renowned outperform all other soft drinks manufacturers will continue to feel tlers. The restructuring will allow for its microwave popcorn segments in the near future. pressure from suppliers as well as for more strategic alignment products, MaisVita juices, Globally, CSDs ranked second from retailers looking to hold down between territories and markets, Yokitos salty snacks and to bottled water in terms of volume private label pricing to drive store increased distribution efficiency Kitano seasonings. General and are still the leader in total traffic. The resulting squeeze on and lower operating costs. In the Mills departed the Brazilian value. In 2010, global volume these manufacturers will drive next two to three years we are more market in 2009 after selling its growth was low at only 2% and in further consolidation as they look likely to see the creation of new Forno de Minas outfit to the conjunction with price increases for additional cost savings from bottling partnerships in North original founders. initiated by Coca-Cola and scale and distribution efficiencies. America and Asia-Pacific. Most

Key Indicator Turkish sultanas 9 LJC 400 gpl clear Cali raisins cif UK Find more key data -2.2% ex-works -5.5% +4.7% in our on-line library at Snapshot GBP1 527/tonne EUR2 600/tonne GBP1 787/tonne www.agra-net.com Industry News Global wine supplies will reduce further pushing prices skywards BY JENNIFER WILLIS-JONES harvest in 2010, helped ease the global supply-demand balance “The report adds that the global oversupply situation in 2011. dynamics. Returns to SJV wine THE global wine sector has Looking ahead to 2012, global grape growers improved markedly reduction in global surplus been dealing with excess sup- wine inventories appear poised for in 2011 owing to tighter bulk wine will almost certainly result plies for a decade, as a result further declines. They are, in fact, supplies around the globe, steady in continued strength in of increasing vineyard area in at their lowest point in over a demand growth for Californian New World producer coun- decade, with supplies slightly wines at home and improved com- pricing for wine grape tries, declining consumption exceeding demand. While the petitiveness of Californian wines, growers in many regions in Old World markets and International Organisation of Vine courtesy of the weak US dollar and large global harvests in and Wine (OIV) figures are based negligible growth in vineyard area. 2004-2006, according to in part on estimates of the size of high unemployment and high infla- Rabobank’s latest industry the 2011 harvest and carry some Currency fluctuations tion rates create headwinds for report. margin for error, there is strong The weak currencies of Europe and consumer spending. In the US, in While excess inventory made it evidence to suggest that much of the US have provided ample stimu- spite of continued growth in wine easier for wineries to purchase raw the excess supply in the global lus to the wine sectors in both and spirits volumes, consumers material and allowed for very market has been eliminated. regions. Exports have improved have become more cautious in their attractive opportunities for con- Strong grape pricing could dramatically and EU suppliers spending habits. Many are trading sumers, the surplus drove down drive investments to improve have finally been able to draw down to lower priced wines while pricing and adversely affected yields, but barring excessively down the large inventories that had others are buying more expensive brand-building efforts further down large harvests or additional deterio- been weighing on the industry. wines, but often only when the supply chain. ration of the global economy, the Chile, South Africa and Australia discounted. The global wine surplus likelihood of tight supplies appears have felt the opposite effect, with In short, the global economic appeared to reach its peak in 2006, to far outweigh the likelihood of the strength of their currencies downturn has had an impact on the following several large harvests, excess supplies into 2012. It should squeezing profit margins. Chile and product mix in many core wine with stocks steadily dwindling be added, however, that the impact South Africa saw some relief markets, and wine companies have since then. Analysis of production of tightening inventories will be through a decline in their curren- chased consumers down-market. and consumption trends (including felt by widely varying degrees cies towards the end of 2011, but Margins have been compressed by estimated industrial use within across different countries. the decline of the Australian dollar the challenging economic climate, consumption) suggest that the large The report adds that the reduc- was less pronounced, and there a situation further accentuated by inventories amassed during the tion in global surplus will almost appears to be little evidence to the impact of producers of tight middle of the last decade have been certainly result in continued suggest that Australian producers supplies in some regions, and of steadily declining in recent years. strength in pricing for wine grape will receive any support from a high currencies in others. Wine On the demand side, increasing growers in many regions of the weakening currency into 2012. companies may be more willing to consumption in the US and some world. Wine grape and bulk wine Tightening global stocks have sacrifice volumes and grow emerging markets has helped to prices have been firming up in not yet translated into improved margins by increasing pricing, par- compensate for declining con- most regions and for most vari- wine pricing at the retail level, as ticularly if the economy starts to sumption in the traditional wine etals. Given that the US is a major the uncertain economic climate in move in the US and the UK and consuming markets of Europe, wine producer as well as an impor- major wine markets such as the UK suppliers have enough flexibility to such as France, Italy and Spain. tant market for imported wine, and the US has intensified con- rationalise their supply base or ship Improving consumption trends, prices for San Joaquin Valley (SJV) sumer price sensitivity. In the UK, more product to higher margin coupled with a smaller global fruit serve as a barometer for the wine consumption has been soft as emerging wine markets. Anfaco publishes book on aquaculture Iranian fruit trade PHILIPPINE banana and BY JENNIFER WILLIS-JONES Europe and America, the main The Norwegian aquaculture pineapple growers have been toxicity problems of phytotoxins, industry, for example, has lost a offered payment in oil rather SCIENTISTS from Spanish early detection of toxic episodes, total of EUR2.57 million than currency by Iranian canned fish industry organisa- the anthropogenic causes and (USD3.45 million) in the past five importers, The National tion Anfaco-Cecopesca have main ways to stop the formation years due to closure, while in reports. The offers came published a book titled ‘New of toxins, in addition to prevention Greece, losses have climbed to because trade sanctions on Trends in Marine and Fresh- of emerging toxins in Europe. EUR5.0 million per year. In Iran, put in place in protest water Toxins: Food and Safety As Anfaco-Cecopesca points Galicia, Spain some areas in 2005 over the country’s nuclear pro- Concerns’, which studies the out, the quantity and frequency of and 2009 remained closed for gramme, are reducing the relationship between marine toxic episodes has recently more than 200 days. Iranian rial’s value. Iran is an biotoxins and fresh water. It is increased and, as a result, aquacul- It is hoped that this new manual important trading partner for hoped that aquaculture proce- ture farms are closed more often, will answer some important ques- these products, taking 7% of dures will improve as a result. creating substantial economic tions for the industry and create the 1.9 million tonnes of The book investigates the losses for producers and the awareness of the issue in the wider bananas exported by the Phil- safety checks carried out in Asia, industry as a whole. public domain. ippines last year.

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News In Brief Sugar is top Fairtrade product Coke’s new cheap lines COCA-Cola India plans to but aims for even bigger share revive its Crush and Schweppes lines, which it BY julian gale small organisations owned and and Marks & Spencer have boosted bought along with clear governed by farmers themselves. sales of bagged Fairtrade sugar lemon Canada Dry as part SUGAR has become the UK’s Sugar farmers who sell to the under their own labels. Wm Morri- of a global acquisition of leading Fairtrade-branded Fairtrade market are paid a premium son Supermarkets is expected to Cadbury Schweppes’ soft product, accounting for a to invest in social, environment and join them soon. drink business in 1999. The third of the entire sugar business development to combat The increasing popularity of country’s Economic Times market, and is likely to extend poverty. “If we want to tackle Fairtrade chocolate has also contrib- says Crush may target low- its dominance over other poverty, we have to scale up sugar,” uted to the growth of volumes in income consumers with a commodities such as bananas, Lamb said. Fairtrade sugar as an ingredient. lower price than Coca- coffee and cocoa, Harriet The Fairtrade premium is “Fairtrade chocolate has captured Cola’s own Fanta orange Lamb, executive director of USD60 per tonne for conventional people’s imagination,” Lamb said. drink. Schweppes tonic the Fairtrade Foundation, cane sugar and USD80/tonne for In terms of wholesale value, water and premium soda told Reuters. organic sugar. All products bearing Fairtrade sugar sales in the UK rose will be sold nationally “Sugar is now the largest the Fairtrade mark must comply to GBP230 million (USD363.9 across more than 10 000 product in the Fairtrade range” by with strict standards that guarantee million) in 2010 from GBP99 outlets, and will be packed wholesale value, Lamb said ahead a fair price to producers. million in 2009, according to the in cans. Currently, of the Fairtrade Fortnight promo- A big share of sugar consumed latest available figures from the Schweppes is available only tion, which runs from February 27 in the UK comes from sugar beets foundation. in non-returnable glass to March 11. “I think sugar will grown locally, a market that is not The wholesale value in 2010 for bottles in a few restaurant stay out there at the front,” she part of the Fairtrade system. Fairtrade coffee was GBP108 channels and select modern added. Major UK sugar supplier, Tate & million and for cocoa GBP97 trade stores. Coke is also Lamb said the Fairtrade Foun- Lyle, sells Fairtrade retail sugar million. reviving Citra, an old dation aimed to increase retail after having brought smallholder Estimated retail sales of Fairtrade Indian brand it bought 20 Fairtrade sugar sales to half of the sugar growers in Belize into the sugar rose to GBP384 million in years ago, mainly to fight UK sugar market. Fairtrade system. Retailers such as 2010 from GBP165 million in smaller regional B-brands. Fairtrade certification is open to Sainsbury, the Co-operative Group 2009. Milk powder explosion AN explosion in an New soft drinks plant set up in Bahia Australian dairy has BY VLADIMIR PEKIC agriculture secretary Eduardo Bahia’s state agriculture secre- caused about AUD300 000 Salles, on 23 February. tariat wishes to see guaraná seeds (USD323 000) worth of PERUVIAN beverages pro- Embotelladora San Miguel, a processed locally, instead of being damage. The blast ducer, Embotelladora San company belonging to Ajegroup, transported to Amazonas for pro- happened in the powdered Miguel, is establishing a pres- will produce non-alcoholic bever- cessing into guaraná syrup. Salles milk section of the plant at ence in the north-east ages, including carbonated soda announced that he intends to soon the Longwarry Food Park Brazilian state of Bahia with drinks, fruit juices and flavoured hold a meeting with officials from near Melbourne. Nobody an initial investment of BRL25 waters. guaraná producer associations in was hurt. The managing million (USD9.2 million) in a The presence of the Peruvian the regions of Taperoá and Nilo director of the Longwarry new bottling plant in Alago- beverages company is seen as a Peçanha, as well as with Embotel- Food Park, Rakesh inhas municipality. great opportunity for the consolida- ladora San Miguel and the Aggarwal, said that dust With 60% of construction com- tion of the local guaraná production Fundação Odebrecht foundation in and powder explosions are pleted, the new plant is expected to chain. Guaraná seed is currently order to study the possibility of an occupational hazard in start test operations in April or priced at BRL10-15 per kg, com- producing guaraná syrup locally to milk processing plants. May, according to company offi- pared with the BRL25/kg that supply the Peruvian beverages cials who met with Bahia’s state guaraná costs in Amazonas state. producer. Organic kids’ juices continued from page 1 Just last week it was incredible pressure as a result of UK JUICE maker PIP Italy. If dry weather continues, announced that the south-east of the lack of rain through the Organic has launched a Germany will also begin to face the UK was officially under winter. Other sectors have statu- new range of products moisture shortages. The dryness drought conditions. Producers in tory powers and priority over which it says has been in these areas is not currently the region are thought to have agriculture, but to ensure food designed especially for stressing crops, but it will have been battling extremely dry con- and environmental security it is kids. The range will an impact if it lingers into the ditions since last summer. vital we are given our fair share initially offer three spring, when winter crops break Following a recent summit on of water,” the CLA president, varieties – cloudy apple dormancy. This will make spring the drought, the Country Land Harry Cotterell, said. juice, strawberry/ rainfall very critical in these and Business Association (CLA) The UK Environment Agency blackcurrant juice, and areas. Eastern Europe and called on the UK government to is expected to publish its latest pineapple/mango smoothie. Ukraine faced dryness during the ensure agriculture is given prior- drought prospects report, which They will be sold in packs autumn months, but improved ity for scare water resources to will set out the areas likely to be of four, priced at GBP2.99 precipitation since then has pro- prevent food shortages. affected by drought in spring and (USD4.70). vided relief,” he added. “Agriculture is under summer 2012, this month.

6 www.agra-net.com © Informa UK Ltd 2012 - FOODNEWS® 2 March 2012 Industry NewsTitle Chinese processors have made more AJC than first predicted BY NEIL MURRAY CHINESE AJC EXPORTS, JANUARY (200979, tonnes) long-term view, let Latin America 110000 sell its production, and then take a It looks as though China 100939 new look at the market for the rest has actually produced more 100000 of the year, and perhaps price AJC than it either forecast or 90000 89816 accordingly. originally announced. This then raises the question of 80000 At a recent meeting of the 70443 how much AJC China is likely to Chamber of Commerce (CCFNA) 70000 74645 sell. Demand in the US and Europe in Xi’an, FOODNEWS under- 57423 remains very weak, and bottlers are 60000 DOWNLOAD DATA 64051 stands that the major processors 54102 known to be reformulating blends compared figures and reckoned 50000 50242 and juice drinks with grape con- CLICK TO45019 that between them, they produced 40000 centrate. It is possible that China about 620 000 tonnes of AJC, as 26242 Source: GTIS will go into the 2012-13 season 30000 opposed to the total of some 30199 with 100 000 tonnes of expensive 550 000 tonnes which had previ- 20000 carry-over, which would present ously been given as an estimate for 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 the same problem that India had the season’s output. last year with its inventory of Even then, the figure could be face the difficulty of trying to sell other processors, are probably expensive Totapuri concentrate. higher. “The total [of 620 000 AJC that was made with very relying on the belief that the US is China exported just over 64 000 tonnes] does not correspond with expensive fruit. Crucially, it means not really covered for the year and tonnes of AJC in the month of our figure,” said a well-placed that China’s unsold inventory is will have to come to the market at January – apparently, more than source in the country. “We believe even bigger than was first thought. some point this summer. For that was expected. The season’s totals it could be 680 000 tonnes because Some sources have told FOOD- reason, while there have been for the five months from Septem- the season did trickle on until NEWS that they are reckoning on some slightly discounted sales to ber through to January have seen December. People were processing 150 000 tonnes, while another said Japan (FOODNEWS 17 Febru- 216 600 tonnes exported. If exports in fits and starts. There was fruit that a figure of 160 000 tonnes was ary), Chinese processors are remain high (at January’s levels or being processed and that volume “probably accurate”. It could even unlikely to discount while selling higher) then China might actually crept up.” be 170 000 tonnes. to the US. They know that Latin run dry before the end of the This, however, does not mean Some two-thirds of this total is America, especially Chile, is about season, which would at least that China’s essential predicament believed to be split between just to come to the market. They can negate the problem of carrying has disappeared. Processors still two processors. They, and the afford to take a reasonably over expensive stock. Brazil cashew nuts destroyed Coke and Pepsi rapped in UAE A COURT in Brazil’s Ceará a fuel source. THE UAE’s Ministry of the size of the AED1.50 (USD0.41) state has ordered the destruc- Over the past decade, the nuts Economy has ordered the can from 355ml to 300ml and tion of more than 10 972 boxes were stored at CONAB but were removal from shelves of some removing the price tag,” said Dr (24 kg each) of cashew nuts allowed to perish as ownership of cans and bottles of PepsiCo Hashem Al Nuaimi, head of the that have been rotting in the the nuts was disputed. Banco do and Coca-Cola beverages, consumer protection department at warehouses of Brazil’s Brasil received the cashew nuts as reports the region’s Khaleej the ministry. National Supply Company collateral in 2002 from Cocaju Times. He said the companies had (CONAB) for ten years. cashew nuts cooperative and Irmãos The ministry claims that the earlier applied for volume changes Vladimir Pekic writes: Most of Fontenele and Agroindustrial companies have reduced the pack in their products without affecting the 263 tonnes of cashew nuts har- Gomes companies. sizes, while maintaining the same the prices but it was a surprise to vested in 2000/01, once ready for The cashew nuts were seized prices, without prior permission. see they reduced the size of cans exports, have now been scheduled from the companies based in For- This is a violation of the UAE’s but maintained the old price. “The for incineration at the end of Febru- taleza and Uruburetama one year consumer protection legislation. price should also have been ary at the Roguimo wax factory, after the payment deadline for a “Both Pepsi and Coca-Cola reduced according to the size of where they will be used as bank loan expired. have violated the rules by reducing the can.”

Pepsi on US dairy New smoothie pack for home PEPSICO, which is about to invest USD206 million in a dairy US FROZEN and snack foods non-fat yogurt and vitamin C. facility in co-operation with Müller, believes that the US market maker, Inventure Foods, has One pouch, blended with apple for dairy is “nowhere near its full potential”, website FoodNavi- added a new product to its juice, makes two 8oz smoothies gator-USA reports. The factory will specialise in yogurts. A Jamba at home smoothies with 140 calories per serving. The spokeswoman explained that Pepsi was confident the joint range. smoothie pack is the fifth intro- venture would succeed: customers are becoming gradually more Orange Dream Machine takes duced within the Jamba licensing aware of dairy products’ health benefits, but US per capita con- its name from one of the Jamba deal in the past 16 months. Found sumption remains lower than that of Europe. Yogurts present a smoothie bar chain’s most popular in the freezer cabinet at US grocery good way of adding value to dairy products. smoothies. It combines peach and stores, it has a suggested retail price orange fruits, vanilla flavoured of USD2.99-3.49 per 8oz package.

News In Brief Dutch juice supplier announces Juice maker sets up in Mozambique organic/Fairtrade AJC products PORTUGUESE juice company Sumol & Compal will BY NEIL MURRAY start producing fruit juices and nectars in Mozambique ARIZA BV of the Nether- in March. According to a lands has announced what it statement from the compa- claims to be the world’s first ny, reported by AllAfrica. organic and Fairtrade certi- com, Sumol & Compal has fied apple juice concentrate. signed a contract “to pur- The fruit is grown in the chase an industrial installa- Ningxia province, in the north of tion on the outskirts of China. The cooperative consists of Maputo plus assorted equip- 76 farmers on 318 hectares of ment in order to produce organic land with a further 60 ha our brands locally”. At pres- in conversion. ent, its drinks are imported The organic apple varieties are into Mozambique, but are mainly Golden Delicious, red Fuji considerably more expensive and Qinguan. They are grown in a than the South African fruit continental climate, with hot, dry juices that currently domi- summers and cold, dry winters. nate the market. Local pro- The farming conditions are favour- over conventional AJC? FN: Does Ariza sell any other duction will make the juices able: good soils, good climate, ML: As this is product is double- organic juices? If not, are there cheaper and more competi- availability of irrigation water certified, i.e: organic and plans to move into other juice tive. A subsidiary, Sumol and, says Ariza, an excellent Fairtrade, the premium over con- sectors? Compal Mocambique, has socioeconomic structure. ventional non-Fairtrade is rather ML: Ariza specialises in organic been set up. This is 90% Ariza has been involved in this hard to assess. A price premium fruit ingredients. We sell a very owned by the Portuguese project since 2009. Together with over organic apple concentrate (so wide portfolio of organic fruit group. In the first year of its concentrates, NFC, purées, IQF activities in Maputo, it plans FIBL, the Swiss research institute Fairtrade only) is, however, to invest EUR8.0 million for organic agriculture, they approximately eight to 12 US and blends. We source them from (USD10.4 million). The com- improved many things, like the cents per kg of concentrate, and in around the globe, mainly from our pany also hopes to export its soil, pruning techniques and reality depends on the quality of ‘own’ projects, which we visit and products to other members higher yields. the apples and also the process- improve every year together with of the Southern African The organic AJC has a brix ing. This price premium is rather our organic farming consultants Development Community level of 70º and a acidity of 11-19 straightforward, based on world- from FiBL, the Swiss Organic wide apple price agreements. farming research institute. We (SADC). per kg of tartaric acid, measures at pH8,1 and is available in aseptic FN: How large is the potential also have our own production unit 250kg barrels. The apple juice market? for apple concentrate and other Grape concentrator concentrate is organically certified ML: Difficult to estimate, but fruit ingredients in Turkey, so correction for America as well as Europe both organic and Fairtrade there we control the chain totally. AN arTICLE in the previ- (NOP). markets show huge growth In other words, we are a dedicated ous issue of FOODNEWS figures. The largest Fairtrade supplier of organic food ingredi- referred to a new grape juice Interview market, the UK, showed growth ents, and the combination of concentrator being built for FOODNEWS has conducted an of 40% last year to GBP0.946 organic and Fairtrade is an addi- Welch’s. FOODNEWS now interview with Marian Lammerts, billion (USD1.485 billion)[1]. We tion to our portfolio. understands that while Ariza’s marketing and communi- believe that supply will be the FN:What other Fairtrade product Welch’s will indeed be using cation manager, to present more limiting factor. We have 1 500 does Ariza do? some product made by the information about this initiative. tonnes of organic and Fairtrade on ML: Our focus is on organic, as concentrator, it has not actu- FN: Whose original idea was offer and 600 tonnes of conven- said before. We are currently ally been built for the com- this? tional and Fairtrade. sourcing organic and Fairtrade pany, as we were led to ML: Our main business is organic FN: Where are the most probable pear, orange, banana, mango and understand by a misleading fruit ingredients. We were looking customers? The US, Europe, passion fruit. statement from Welch’s. We for logical ways to broaden our Japan or somewhere else? FN: Does Ariza plan any more are happy to set the record portfolio of organic fruit ingredi- ML: As our company focus is on Fairtrade products? straight. ents. A lot of end-users think that Europe, the most probable cus- ML: Yes, we do: see above. We Fairtrade is farmed organically tomers will be found in Europe. source them in order to sell as a Snapple tea drink and that organic is Fairtrade, and We will focus on selling in the single ingredient, but even more SNAPPLE has launched this is not the case. Monitoring Netherlands, the UK, Germany so to fully use our blending capa- Diet Half ‘n Half Lemonade the worldwide trend of responsi- and France. bility. We can convert organic and Iced Tea, made from green ble consumption, we saw more FN: If necessary, can production Fairtrade ingredients into tasteful tea, black tea and with only and more double-certified prod- be quickly increased? blends. 10 calories per 16oz bottle. It ucts and research stating that ML: In the specific project in [1] Source: Fairtrade by num- comes in individual 16oz consumers find it logical. And in China we have 60 ha of land in bers, key data for 2009-11. bottles priced at USD1.39 fact it is. So we decided to jump conversion (from conventional to For more information, contact and six-packs for USD5.99. on board. organic, that is). And this can be Ruud van Wijk, [email protected]. Tel FN: What is the price premium done quickly. 0031-(0)492-52 83 64

8 www.agra-net.com © Informa UK Ltd 2012 - FOODNEWS® 2 March 2012 Fruit JuiceTitle Wild unveils malt drinks ideas and lo-cal concepts at Gulfood BY NEIL MURRAY bringing about further growth. In juice basis packs with superfruits. “Mint-based products were Dubai, Wild presented energy They can be used as a basis for WILD, the German beverage drinks with juice adapted to the beverages and combined with also showcased in Dubai, and ingredients development taste preferences of consumers in other juices to give manufacturers the result of Wild’s recent company, has announced its the Middle East such as a blend of a flexible juice content ranging acquisition of A.M. Todd latest trend-oriented concepts orange, passion fruit and mango from 20-100%, depending on for the Middle East market. juice. market requirements and customer Group, a worldwide leader The new products were show- Wild’s latest energy drink inno- wishes. in natural mint.” cased at the recent Gulfood vation is ‘Energy plus Coconut’, a New natural mint-based prod- exhibition. concept that combines coconut ucts were also showcased in sweeteners, with the main focus on In the Middle East, non-alco- water (becoming ever more Dubai, the result of Wild’s recent the calorie-free sweetener stevia. holic soft drinks are hugely popular popular) with the growth market acquisition of A.M. Todd Group, a The Sunwin Stevia brand offers and influential, due mainly to the energy drinks. For the premium worldwide leader in natural mint food and beverage manufacturers fact that many Middle Eastern carbonated soft drinks (CSDs) flavours and mint-derived ingredi- turnkey solutions. Elsewhere, companies ban alcohol. The non- segment, Wild has developed ver- ents. Mixed fruit and mint flavours manufacturers are being offered alcoholic malt beverages segment sions with fruit pulp and fruit cells for the confectionery industry are the natural fruit sweetener, Fruit is growing steadily throughout this that provide a round mouthfeel. just one example. Beyond food Up, which is also available as a region, says Wild. “Malt drinks are Cloudy variants are particularly in and candy, the acquisition also tabletop sweetener. EU approval an excellent non-alcoholic alterna- demand. They are available with creates new opportunities for of stevia was granted in November tive to beer and traditional soft classic citrus flavours as well as unique mint flavour systems within 2011 and is expected to have new drinks,” it claims. Wild has shown with innovative flavours and can the oral care and beverage markets. implications and opportunities for new concepts for premium malt be combined with juice. Wild provides comprehensive con- the Middle East market. Wild beverages: from plain to flavoured Wild also showed new concepts sultation services to manufacturers claims that its technology elimi- with fruit or blended with juices. for still drinks, like cocktail still and offers customised natural solu- nates the characteristic licorice The top global growth cate- drinks with red fruit mixes such as tions for a whole range of nuance and partly bitter aftertaste gory is energy drinks. Besides grapefruit, orange and raspberry. A applications. of stevia, and that it can now offer classic flavours, new flavours are further innovation is the ‘Super Wild has also been showcasing calorie-reduced, low calorie as gaining momentum and are Fruit Duo’ concept: all-natural its broad portfolio of natural well as calorie-free varieties. Italian citrus company welcomes organics deal BY EMMA SLAWINSKI wide range of citrus fruits, as well there are plenty of other products supply chain will be a draw for cus- as their by-products such as cells, for Italian suppliers like SunProd tomers. The company has signed THE NEW deal between the pulps and peels. It is also one of around on which to base a varied co-operation agreements with EU and US on equivalence of few providers of PDO prickly offering, not least blood orange several processors and grower organic standards could pears from Etna, in juice and con- and its derivates, which are unique associations in order to have direct open up significant new centrated pureé form. to Italy. control of quality and complete opportunities for a fledgling Ansorge, who already has 25 “We have to work on adding traceability of raw materials sup- Italian citrus products sup- years’ experience in citrus deri- value,” Ansorge agreed. “Blood plied to its network of factories. plier, its founder has told vates, explained that a significant orange, yes, but there is also inter- The company will become a FOODNEWS. part of SunProd’s business is in est in other products: essential member of the German organisa- The agreement between the organic products. This is particu- oils, grapefruit products; mandarin tion, SGF (Schutzgemeinschaft der two regions to accept each other’s larly important as part of a is going very well, demand is Fruchtsaftindustrie), participating organic certification was struck at value-added offering in the context high. Diversification is in their Voluntary Self-Control the BioFach organic trade fair in of a difficult economic climate. important.” scheme. Germany, and will come into force Speaking to FOODNEWS As well as offering a wide For more information contact on 1 June (FOODNEWS 24 shortly after attending BioFach, range of products, SunProd hopes Walter Ansorge walter.ansorge@ February). Ansorge said: “Approximately that its careful management of the sunprod.it Tel 0039 33811 32020 “The removal of this barrier 15% of our production is organic, will open a big market for us,” we’re counting on new contacts said Walter Ansorge, of SunProd gained in this sector. Phthalate checks lifted Srl, Products of the Sun, based in “[Organic] is still in growth, MALAYSIA has lifted its border controls on some Taiwanese Catania, Sicily. The company despite the crisis, it’s growing foods, including fruit drinks, in advance of the scheduled date. already has strong connections to slowly but surely. There are Malaysia imposed the controls after it was discovered that some the US market and is ready to leap always more people exhibiting [at Taiwanese products contained phthalates (a plasticiser), in place into action on business in organic Biofach].” of more expensive emulsifiers(FOODNEWS 3 June 2011). Malay- products as soon as the deal goes Italy is currently suffering from sia follows China, Hong Kong, South Korea and Singapore in through, he added. stiff competition from Spain in the announcing that it no longer requires Taiwanese food exporters to Established in March last year, lemon juice market, as the latter provide official certification proving their products are free of Sunprod is a supplier of juices, country is benefiting from much phthalates. concentrates and essential oils of a lower raw material costs. But

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FoodNews (184X126).indd 1 2/28/12 3:52:14 PM 17-19 April 2012, Park Hyatt Mendoza, Mendoza, Argentina The conference will 9th Annual be conducted in English and Spanish Assessing Production, with simultaneous interpretation Export and Consumption Trends in the Latin American Markets for Juice Juice, Nectars and Pulps

Latin For Sponsorship and Exhibition opportunities please contact Gareth Moore, email: [email protected] or telephone on +44 (20) 701 77574 America 2012

Speakers Include: • Network with juice bottlers and producers from Latin America and around the world Francisco Prado Jugos del Sur S.A, Argentina • Secure juice raw material supplies at competitive prices Marcos Queiroz • Assess export prospects for juice from Latin America Embotelladora Andina S.A., Brazil with the latest insights into global supply and demand dynamics Christian Lohbauer • Identify the most signiﬁ cant and lucrative new product CitrusBR, Brazil trends in Latin America Guillermo Becerra Peñaﬂ or S.A., Argentina Neil Murray, Foodnews, UK www.juicela.agraevents.com / www.informagroup.com.br/juice

Organised by: Supported by: Associate sponsor: Exhibition sponsor: Fresh Produce Investment and training vital for future of Ghanaian pineapple BY AMY BOOTH investment into post-harvest infra- MiDA could provide Ghana Kwasi Akyem Appeah-Kubi, structure. Ghana’s fresh pineapple with the means to reverse this Eastern Regional Minister, was GHANA’s Minister for Agri- exports have dropped from 71 000 trend. In 2006, the US government particularly enthusiastic about the culture, Kwesi Ahwoi, tonnes in 2004 to 29 000 in 2009, agreed to invest up to USD547 potential of the MD2 variety. believes that the country has according to an article on Vibe million in the country. It based the Vibe Ghana says that pineapple potential to reverse its dwin- Ghana. This reflects the neglect of decision on Ghana’s just govern- is a “non-traditional export” but dling fresh pineapple exports. what is described as ‘Ghana’s ment, investment in people, and has the potential to be lucrative. Infrastructure and fewer leading horticultural product’. The encouragement of economic More traditional products include young people in agriculture exports of 2004 would have seen freedom. cocoa and cashew nuts. The were among the issues Ghana placed seventh in the world A portion of this money was average value of pineapple addressed in a recent speech for fresh pineapple exports. dedicated to agriculture, with a imports was USD1 304 per tonne given at the opening of a However, interest in the product view to training farmers in com- in the first half of 2011. pineapple pack house funded trailed off as expensive raw mate- mercial agriculture and the value A similar scheme training pine- by the Millennium Develop- rials pushed production costs up. chain; developing irrigation; apple growers in farming methods ment Authority (MiDA). Ghanaian pineapple is mostly improving road infrastructure; and and the supply chain was also Ahwoi maintains that pineap- bought by western European developing post-harvesting han- adopted in Rwanda last week with ple could become more lucrative nations; Belgium, France and the dling capacity. This offers scope a view to increasing yields, The if the sector were to put greater UK top the leaderboard. to invest in pineapple exports. Dr New Times reports. Good export demand for Italian oranges California BY EMMA SLAWINSKI Siracusa, for all varieties tracked. beginning, and Palermo (EUR0.35/ Movement was slow and there was kg, EUR0.38/kg). Clementines expects better PRICES of Italian oranges a downward price trend. Prices in were most expensive in Matera, at entering the market from the Puglia were also down amid low EUR0.40/kg, while they could be asparagus crop southern area of Metaponto, demand. found in Catania and Siracusa in BY JENNIFER WILLIS-JONES Basilicata have been rising off Navel oranges from Siracusa the low EUR0.20s. good internal and export were priced at EUR0.21, stable Meanwhile, Primofiore lemons CALIFORNIAN asparagus demand, according to the week-on-week, while those from are trading higher than last year. growers are expecting a good latest report from the eco- Taranto dropped one euro cent to Those originating in Catania were harvest this year, as cooler nomic research body, ISMEA. EUR0.28/kg. down three euro cents to EUR0.38/ temperatures have given way Trade has been continuing at a ‘Common’ Tarocco oranges (a kg week-on-week, but still 30% to warmer weather in the state. sustained pace, and there is a deci- type of blood orange) were priced higher than the previous year. The Prices are expected to fall in sive tendency towards firmer prices. at EUR0.19/kg in Siracusa, again same variety from Palermo and Sir- line with increasing produc- Export demand from Germany and stable versus the previous week, acusa was at up 5% and stable tion volumes. Eastern Europe is especially strong. while those from Catania fell 14% respectively, at EUR0.33/kg and The California Asparagus Com- The price in the period from 13-19 to EUR0.15/kg week-on-week. EUR0.38/kg, representing increases mission had reported that cooler February for oranges originating in Mandarins (tardivo di Ciaculli of 5% and 7% year-on-year. than normal weather conditions this area was EUR0.38 (USD0.51) variety) at the various Sicilian Trade in apples saw a stable slowed spear development in aspar- per kg, up 25% on the previous origins were roughly stable, and week and the pace of sales was agus beds, with low night week and up 67% year on year. were much cheaper in Siracusa slow on the internal market. temperatures known to have ham- However, prices were down in (EUR0.27/kg) than in Catania, All prices ex-producer’s prem- pered this year’s crop, but the the Sicilian origins, except for where the harvest was just ises, loading terms vary. situation had now improved and good volumes are expected. “Supplies are continuing to Del Monte loses Morrisons salad deal increase,” Mark McBride of Coast- BY JENNIFER WILLIS-JONES the remaining supply deals, under- the factory would be saved. The line Produce told Fresh Plaza, “and stood to be worth GBP3.0 million, union has some 20 members at the that is a result of good weather.” DEL Monte Fresh Produce’s are said to be too small to allow factory, which employs 140 per- The market for asparagus has factory in Skelton, the UK, is the factory to be kept open. manent staff. been reported as steady and prices facing closure following the Sam Vickers of the Bakers, Del Monte Fresh Produce (UK) were USD18.75-20.75 per carton as loss of a major contract with Food & Allied Workers Union, has not commented on the future of 23 February. Morrisons supermarket which has a recognition agreement of the factory, but it is understood “There will be downward pres- chain. The York-based facil- with Del Monte said: “The it is looking to put business into sure on the market from increased ity produces lines such as company has GBP16 million of other retailers. supplies,” McBride predicted. This coleslaw, potato salads and orders with Morrisons. If it does Morrisons has been in the spot- should happen when the Salinas other dressed products. not get any more business in the light recently as it is believed to be growing area begins producing Del Monte Fresh Produce had next two weeks or so, it will have re-evaluating its supply chain. It is more volumes in late February or some GBP16 million (USD25 to close on 29 April.” rumoured to be putting more busi- early March. Good supplies of veg- million) of business with the Brad- He added that the union had ness via Global Pacific Produce, a etables should be available into ford-based retailer, but that met with Del Monte management company through which it is June... There should be good sup- contract is not being renewed and this week but was not optimistic sourcing more, directly. plies at affordable prices.”

© Informa UK Ltd 2012 - FOODNEWS® 2 March 2012 www.agra-net.com 11 Canned Foods Chinese mushroom canners will need to invest in new machinery BY AMY BOOTH machinery. Inspired by this, it from China is Russia. This is a are calculated quarterly and are appears that some farms that market which is almost solely currently “very good”, with food- AS CHINA’s economy grows, grow year-round may be opening price-driven, paying less heed to service customers currently mushroom canners will be in China, but these are expected quality. The trader commented paying around USD30.00-31.00 forced to invest in alternative to supply the fresh market. that price is always a factor, but for 6xA10 cans. They are com- production methods or risk The fresh market presents that other markets are more selec- monly used for processing into becoming outdated. competition to the canned market. tive regarding quality. sauces and soups, and in restau- Labour costs are currently the More lucrative speciality mush- The European market is cur- rants. She added that demand for main source of concern (FOOD- rooms are becoming more popular rently relatively stable. Prices smaller retail cans is currently NEWS 20 January). A trader in China and fresh produce on remain at an average level. The very good; customers appear to explained: “Some people are sale in China is reputedly of very weak euro is boosting sales to the be buying them as a cheap option talking about a 10-15% rise in good quality. Moreover, there is US, but otherwise, most packers rather than fresh produce. Orders labour costs, others are talking next to no domestic consumption remain unaffected by the euro- have increased by around 20-30% 30%, but all of them are con- of canned mushrooms, even in zone woes. Canned mushrooms recently. vinced that it will continue to sectors such as fast food. It appears appear to be a relatively reces- Duty on canned mushrooms rise.” The rises are higher than a logical step for farmers to switch sion-proof food, partially because arriving into the US, which is inflation, reflecting manufactur- to a crop that is similar but higher they are not seen as a luxury currently USD2 500 per con- ers’ efforts to prevent workers in value, and which does not need product. A source added: “The tainer, will be reviewed soon. seeking employment in sectors to be processed or exported. industry adapted relatively well Importers are concerned about such as construction, where there The harvest in China is reported to their commoditisation, keeping the potential for introduction of is a lot of work, contacts say. In to be reasonable in volume. them an affordable consumer anti-dumping duty. The importer response to this, employers will However, the supply of whole item.” explained that Indian and Indone- “simply have to” invest in more button mushrooms is slightly sian producers, in particular, also machinery to automate the down because bad weather in the US market import to the US. “Everybody has canning process, a development growing season caused issues with A US-based mushroom importer to work together on pricing,” she which he expects to take place the quality of raw material, told FOODNEWS that duty is explained. Any alterations to duty over the next three to five years. sources say. “Prices will probably currently the main concern for rates on canned mushrooms He added that many producers be around last year’s levels or up a traders. The market is described would happen in April, but the from China are travelling to bit,” the contact said. One poten- as “pretty stable in the past three importer had not heard of any Europe to observe the available tial home for lower-grade produce or four years”. Prices proposed changes to date. Alaskan salmon run to fall by a quarter this season BY AMY BOOTH million. some areas earlier in the season, million, Kodiak is expecting an In south-east Alaska, the pink and because the proportion of fish average harvest. THE Alaska Department of salmon catch is forecast at 17 reaching spawning grounds for The Bristol Bay area sockeye Fish and Game (ADFG) pre- million. This is “well below the some areas was below manage- run is predicted at 32.3 million dicts a significant drop in recent 10-year average harvest of ment targets. fish, which is 14% below the pink salmon catching this 40 million, but equal to the If the pink salmon run in the 10-year average. season. The report also average harvest over the past three Prince William Sound reaches the These figures are estimates included Sockeye (red) even years”, the ADFG reports. 4.4 million-fish forecast, it will be only, but the expected 25% overall salmon, which is sometimes The harvest is expected to be the thirteenth largest since records decrease reminds the industry that canned. Forecasts by the lower because there were low began, giving an estimated 3.2 sustainability must remain at the ADFG are used to formulate populations of pink salmon in million-fish harvest. At 13.2 top of Alaska’s agenda. catching quotas for commercial fishing, so the canned salmon market may be Israeli factory shuts in dispute looking at lower supplies and higher prices this year. A CANNERY in northern was promised an ILS18 million workers to claim national insur- The total salmon harvest in Israel has been closed without (USD4.8 million) government ance. However, most employees Alaska for 2011 was 177.1 million, warning and its employees grant, and will be forced to make are older and unskilled, so the lower than the pre-season estimate sent on unpaid leave in a its employees redundant if it does decision has proved incredibly of 203.5 million. Of these, most dispute over a grant, Amy not receive the money. unpopular. (116.1 million) were pink salmon, Booth reports. The factory However, the government This is not the first time within which is used for canning. On belongs to Pri HaGalil, which maintains that it does not qualify the past year that the factory has average, pink salmon fetched is the largest vegetable and for the grant. The cannery in attempted to close, even though it USD0.42 per pound at the docks. fruit canner in Israel. It pro- concern, located in Hazor turns an annual profit. If the messy Other significant varieties were duces both canned and frozen Ha’Glilit, is Israel’s largest vege- dispute continues to hurt workers, sockeye (40 million) and chum products. table processing plant. Pri HaGalil may struggle with a (17 million). Catching is forecast According to Haaretz newspa- The factory’s owners say that poor domestic market image and to fall 40% in 2012 to 132.1 per, the company claims that it the leave is unpaid to enable reputational damage in the future.

12 www.agra-net.com © Informa UK Ltd 2012 - FOODNEWS® 2 March 2012 Canned Foods

Promising EU-Mauritius FPA to News In Brief Chilean canned fish fund catching and sustainability CHILE’s canned fish exports fell last year despite BY AMY BOOTH MAURITIAN CANNED TUNA EXPORTS an overall rise in exports of (JANUARY-NOVEMBER, TONNES) fisheries and aquaculture THE EU has initialled a new products. These products 160414 2006 2007 2008 2009 2010 2011 Fisheries Partnership Agree- constituted 5.8% of Chilean ment (FPA) with Mauritius UK 25999 24095 24256 20338 26138 16702 exports last year and rose 31% in value terms to in what has potential to be a Spain 10410 6986 5472 7332 12174 12175 valuable new arrangement USD4.7 billion, according to in the region. The tiny island US 1749 6009 4640 7804 4129 7669 a report by the nation to the east of Mada- Italy 2932 7516 10830 9103 7894 7270 Undersecretariat of Fisheries (SUBPESCA). Particular gascar is a great exporter of N’lands 968 1068 907 736 1719 2994 canned tuna and the first growth was seen in fish oil port for long liner tuna fleets France 1957 1713DOWNLOAD 1151 1884 DATA 1493 2529 and smoked produce, and leading items were Atlantic in the Indian Ocean. Germany 279 1095 172 701 828 2142 The agreement will run for CLICK TO salmon and trout sold to the three years, and will entail a total Austria 149 0 60 461 551 881 US and Japan. Despite these contribution to Mauritius of Portugal 279 460 309 1492 808 735 figures, Chilean canned fish exports fell 49% to 14 410 EUR1.98 million (USD2.66 Belgium 302 305 656 808 400 702 million). This is broken down tonnes in 2011. The fall in into EUR357 500 annually, which Others 2054 1608 862 502 1157 1115 exports has been remark- ably steep – in 2001, canned will cover the rights to fish 5 500 Total 47078 50855 49315 51161 57291 54914 fish exports peaked at tonnes of tuna, and EUR302 500 Source: GTIS annually, to be spent on support 101 678 tonnes. Dwindling of Mauritian policy and the pro- However, the agreement may November; this represented a industries include canned motion of sustainable fishing. be of greater significance for year-on-year 4% decrease, but it salmon and canned The FPA is part of a wider frame- international relations and sus- remained sixth exporter in the mackerel. work of developmental support tainability than for trade. One EU world. Top customer, the UK, arranged between the EU and trader commented that although took 36% less, but many coun- Dead tuna found Morocco. the agreement officially ended in tries, notably the US, the THOUSANDS of dead tuna Boats will not be permitted to 2007, the framework agreement Netherlands, France and found floating in the sea in fish within 15 nautical miles of remained in force, and that this Germany, took more. waters west of Dubai may the shore to prevent harm to development was confidently Further west, the Inter-Ameri- have been killed by illegal local, small-scale fishermen. expected. Rather, it would have can Tropical Tuna Commission farming methods, website The agreement comes after been a problem if the agreement (IATTC) has published 2011 full- Gulf News reports. Major another agreement ended in late had not been renewed. Interested year catching data for the Eastern General Mohammad Al 2007. Commissioner Maria parties include Princes and Thon Pacific Ocean fishery. Skipjack Merri, chairman of the fish- Damanaki was positive about the des Mascareignes, which have catches, dominated by Ecuador, ermen’s cooperative associa- agreement: “After a five-year gap factories in Mauritius. were up to 272 713 tonnes from tion of Dubai, explained that in our bilateral relationship in the France, Portugal and Spain are 170 716 tonnes in 2010. Yellow- inexperienced crew may fisheries domain, we now have a expected to take a particular fin, however, dropped to 208 782 have used new methods solid legal framework ensuring interest in this agreement. Mauri- tonnes from 228 730 tonnes year- which resulted in catches far sustainability and a science-based tius exported 54 914 tonnes of on-year, with Mexico dominating larger than their boat’s approach,” she commented. canned tuna last year to catches. capacity. Since tuna die if they are unable to move in water for two minutes, many Icelandic mackerel stance detailed of the excess fish would have AN ICELANDIC spokesper- parties. This was a prescription for maximise the value of catches. died before they could be son has outlined the country’s overfishing and totally irresponsi- The fishing operators have returned to the water. Al position on mackerel fishing ble,” he said. To put this in context, invested heavily in gear and equip- Merri emphasised that fur- after talks to renegotiate a reported 23% of mackerel stocks ment for this purpose and have ther testing would be neces- quotas failed earlier this migrated into Icelandic waters been very successful. More than sary before the precise cause month, Amy Booth reports. during the summer feeding months. 90% of mackerel caught within the could be determined. The spokesperson put forward a It is worth noting that while small Icelandic zone last year was pro- number of points. Iceland consid- in population terms, Iceland’s cold cessed for human consumption, Pineapple slump ers that the proportion of quota climate and isolated location means compared with 60% in 2010. CHINESE canned pineapple allocated to it is unfavourably low. it is more dependent on fishing than Clearly this increased production exports fell 23% year-on- “The EU and Norway decided their other states. and economic value have played a year last year. Exports are mackerel quotas last year, which He continued: “Mackerel fisher- part in Iceland’s reconstruction down to 39 032 tonnes, a amounted to more than 90% of the ies are of great importance for after the serious economic crisis stark contrast with the total allowable catch (TAC) recom- Iceland. The Icelandic authorities which hit the country in 2008.” 80 900 tonnes exported in mended by the International have emphasised that mackerel The total value of the mackerel 2007. Declining markets Council for the Exploration of the caught by Icelandic vessels should fisheries in Iceland in 2011 was include the US, Hong Kong Sea (ICES) and left less than 10% as far as possible be processed for around ISK25 billion (USD200.7 and Mexico. of the TAC for the remaining human consumption in order to million).

Letter to the Editor Thai canned sweet corn demand Greek peaches is strengthening as supplies fall DEAR Sir, I would appreciate it if you could BY AMY BOOTH or even push it back up. There “Focus on Thai corn make some corrections to the will be efforts to make artificial remains high, not only FOODNEWS article “Greek AS RAW material from the rain to clear this fog in coming from Europe but the rest peaches cheaper than SA due to latest harvest comes on weeks, she said. Motorists are good supply” (FOODNEWS 21 stream, the Thai sweet corn currently advised to be careful, of the world” February) as follows: market is becoming livelier. according to The Pattaya Mail. 1. 2011 peach production was Prices are falling, but how Demand from canneries is bigger than 2010. far they will fall and the very strong. One Thai trader companies sometimes visit 2. More important is your report influence of cost factors explained: “It is not uncommon farmers and make contracts to that production cost will be lower remains to be seen. [for demand] to be strong at this shift their produce to ensure that than last year. The price of raw material time of the year, mainly because the farmers stay with sweet corn. I want to observe that today remains around THB5.50/kilo supply has been low over the past The Thai baht is currently up we do not have records for this. (USD0.18). One domestic contact three months or so. This caused against both the US dollar and the From the three important cost expects the price to drift down- production to run behind sched- euro, squeezing profit margins, elements, which are peach, tin wards to around THB5.00. ule. Now that the season is but it is unlikely to lose European and sugar, the only one known at picking up, demand is strong.” markets because of slightly lower this moment, is the price of However, a number of factors sugar that unfortunately still will prevent the price from Hungarian output – exports remains around EUR900/tonne sinking further. Farmers’ produc- Grower fidelity dropped 9% to 117 098 tonnes to (USD1 208). tion costs are currently around Nonetheless, the temptation November 2011. In peaches, if the year devel- THB4.50/kilo, up from around remains for growers to switch to Thailand’s main markets are in ops smoothly, the available THB3.00 in previous years. One the lucrative options of sugar, the Far East and Russia; these are quantity will be roughly that particular expense is fuel, espe- tapioca and rubber, depending on markets which it has cultivated which is asked for and this of cially diesel, which is currently the farm’s location. The trader over the past five years in course does not give the prospect expensive. Furthermore, they are added that this is not currently a response to anti-dumping duties of price reduction. still in the process of recouping great problem, and will not in the EU. The source added that Based on the above, my esti- the financial damages from last become an issue while the farmers the EU’s economic situation does mate supported in current data, is year’s floods. are being paid good enough not appear to have influenced that the cost will be around last Another source commented prices to live. However, the situa- buying, although this is a situa- year’s levels, if not higher. that farmers in northern Thailand tion could change in later years: tion to monitor over the coming Best regards, are also experiencing problems “In the future, the cost might con- months. “Focus on Thai corn Costas Apostolou with heavy fog, which can make tinue to rise, just like anything remains high, not only from President harvesting difficult, and expects else around us,” he said. Europe but the rest of the world,” Ε.Κ.Ε. - GREEK CANNERS that this will keep the price steady The other source added that the trader said. ASSOCIATION South African canners upbeat this year German canned BY AMY BOOTH from ZAR85 million (USD11.1 “The South African Bon million) to ZAR43.3 million, and Chrétien pear harvest is herring SOURCES report that “no the company hopes to turn a profit THE German herring fleet is major changes” are expected again in 2012, subject to exchange currently taking place. having a record season, The to take place at Langeberg rates. Weather conditions have Local reports. Catching is up and Ashton Foods after Tiger been good.” to five times better than usual, Brands acquired the fruit Fruit harvest with daily catches of up to 100 canners’ remaining shares. One local source commented that of straight pears is not yet under tonnes. The usual rate is Cape Business News reports some of this season’s peaches were way. closer to 20 tonnes per day. that Langeberg and Ashton Foods slightly damaged by up to a fort- The nation’s fruit cocktail Germany is the world’s (LAF) ran into difficulties in the night of high temperatures and export market is diverse, with the second exporter of canned year ended September 2011 humid weather, but affirmed that volume of exports to many herring. Last year to Novem- because it exports such a large pro- the harvest was “for the most part popular destinations fluctuating ber, it exported 24 252 tonnes portion – over 85% – of its produce. alright”. Another confirmed that significantly. Second customer, of the fish, a year-on-year rise This meant that the strong rand was the temperatures had “little effect” Singapore, took 2 395 tonnes in of 16% and a distinct rise particularly detrimental. Conse- on the fruit, but that some went to 2011 to November, an increase of compared with most of the quently, exports dropped 15.6% in purée as a consequence. Some 88% year on year after a trough in past decade. The top five volume terms, and turnover was peaches were hail damaged and 2010. However, Switzerland, markets for this were Poland, down 11%. also went for purée, but this Germany, the Netherlands, the Netherlands, Austria, the The company also felt the amounted to less than 1% of the Lebanon and the UK all took less UK and the US. Germany is a adverse affects of European and crop. in the same period. net importer of canned South American producers subsi- The South African Bon Chré- The top fruit cocktail produc- herring. It took 36 572 tonnes dising their producers. tien pear harvest is currently ers globally are Thailand, China of the fish in 2011 to Novem- Despite these problems, LAF taking place and will finish this and the Philippines, and the top ber, mostly from Poland and halved its losses in 2011 year-on- week. Weather conditions have destinations for it are North Scandinavia. year by cutting overheads and been good. Some have been pro- America, western Europe and the improving yields; the figure fell cessed for cocktail, but canning Far East.

14 www.agra-net.com © Informa UK Ltd 2012 - FOODNEWS® 2 March 2012 Tomato Products Chinese tomato paste finding stiff competition in Middle East BY EMMA SLAWINSKI (FOODNEWS 5 December 2011). outlook to change. trebled compared with 2010, to “No big quantity has been A second, well-placed Chinese 15 081 tonnes, while those to PRICES of Chinese tomato exported since the Chinese spring industry source, recently returned Saudi Arabia soared to 9 026 paste have dropped back festival ended. We estimated from Gulfoods, said that the tonnes, from just 551 tonnes the significantly in recent weeks around 150 000 tonnes from the market for Chinese paste was previous year. In the case of the in a quiet market, and there 2011 crop were exported, there is “still quiet”, adding: “I heard UAE, there was a marked increase are reports that some Middle still [a] heavy inventory of around many Middle East users turned to in volumes shipped in the last Eastern buyers are switch- 900 000 tonnes waiting for sale buy paste from California, as four months of 2011, peaking in ing to Californian product, before the new coming season,” their prices are very attractive. December, when 3 465 tonnes Chinese and US sources said one source at a major were shipped. said. processor. Low-priced deals However, at least until Decem- The largest Chinese proces- Processors and farmers are A Californian industry source ber, Chinese exports to the region sors are said to be offering 36/38 still negotiating raw material confirmed that he had heard of did not appear to suffer unduly. brix product at USD790 per tonne prices. “It’s quite confusing, the deals taking place between sup- While shipments to the UAE fob, while smaller processors are farmers are reluctant to grow and pliers from the state and buyers in declined to 24 693 tonnes for the offering at between USD700- the processors are reluctant to the Middle East at low prices in full year, from 27 258 tonnes pre- 730/tonne for the same, depending process, [if] the situation contin- recent months. viously (-9%), those to Saudi on payment terms and quality, ues like this, we estimated at least “California has developed Arabia increased by a similar two sources in the country told 40% of China[’s] total capacity relationships with the major volume, to 28 748 tonnes (+17%). FOODNEWS. will be shut down.” buyers in the region, many of In January, shipments to most of This compares with a range of However, sowing of tomato which prefer California quality the Middle Eastern countries USD790-830/tonne from large crops occurs late in the largest and contract reliability,” he noted. China trades with increased, processors down to around Chinese producing area, Xiniji- Indeed, recent US export data however overall tomato paste USD760/tonne for product from ang, towards the end of April, so show full-year exports of tomato exports from the country were smaller suppliers in December there may still be time for the paste to the UAE more than down 14% year-on-year. Late start for Brazilian tomato but larger area planted BY VLADIMIR PEKIC when industrial tomato was con- Sul for industrial tomato The state is keen to start its tracted for anywhere between cultivation. own production of the crop TRANSPLANTING of USD95-USD105 per tonne. “We detected favourable cli- because of large demand from the industrial tomato seedlings In a separate development, a matic conditions in the Serra, Vale tomato processing industry. in Brazil’s leading industrial new study has revealed the best do Caí and Taquari regions, as Lovatel said that agricultural pro- tomato producing state of locations for industrial tomato well as in coastal areas and part of ducers in Rio Grande do Sul are Goiás started in February production in Brazil’s southern- the metropolitan areas,” said already in a process of transition and early estimates indicate most state of Rio Grande do Sul program coordinator, Jaime Luis to industrial tomato varieties. that this year’s total area that could be used for production Lovatel. Yields of industrial tomato devoted to the crop could be of dried tomato, tomato extracts, The study, which took eight varieties in Rio Grande do Sul are 6.5% higher than in 2011. sauces and concentrated tomato years to complete and involved 13 expected to reach as much as Although sowing of this year’s products. researchers, proved that the pro- 130 000 kg per hectare, or double crop started more slowly than According to the study, the duction of industrial tomato the volume that is achieved from usual due to prolonged contract north-eastern region is the most varieties is a viable option for the traditional tomato varieties for negotiations with the tomato pro- favourable part of Rio Grande do state. table consumption. cessing industry in January, the area devoted to the crop could reach 15 500 hectares, based on a Heinz rejects offer for Australian factory forecast issued by Brazil’s Advanced Research Centre in BY EMMA SLAWINSKI that “there is confidence that the the desolate equipment, but they Applied Economics (CEPEA). group can find a Greenfield site certainly will leave a poor If the forecast proves correct, HEINZ Australia has and begin operations in the near reminder of their tenancy. This this year’s production of industrial rejected an offer by a fledg- future”. fight will go on and we will replace tomato will attract demand from ling food co-operative in According to the co-operative Heinz, sadly it does not look like the Brazilian industry, which no Victoria to buy the multina- Heinz rejected the offer without this will be in Girgarre.” longer has a lot of tomato pulp tional’s recently vacated explanation and members ques- GVFC was formed after Heinz stockpiled as was the case last factory in Girgarre, for tioned the company’s motives. announced it was pulling out of year. AUD750 000 (USD802 748). “The offer remains on the table tomato processing in the area, to As regards contracts, even The announcement was made to Heinz, we believe there is no try to create a new outlet for local though producers have pressured on 22 February by the committee other offer, so we are mystified by growers (FOODNEWS 20 the processing industry for an of the Goulbourn Valley Food Co- their rejection,” said committee January). It had drawn up detailed increase in tomato prices, the operative (GVFC), which chairman, Les Cameron. plans to get the Girgarre plant up expectation is that they will remain expressed disappointment that the “They may now wish to sell off and running again to produce both roughly unchanged from 2011 offer was not accepted, but said the water, remove even more of tomato and other fruit products.

© Informa UK Ltd 2012 - FOODNEWS® 2 March 2012 www.agra-net.com 15 Dried Fruit & Nuts Argentina’s prune industry will consider imports to stay afloat BY JENNIFER WILLIS-JONES costs and national taxes. strict to speed up imports. It all appeared to agree with such senti- Some 14 000 families live off depends on the bureaucracy. ment at the meeting by pushing LEGISLATORS, processors, the country’s prune industry, “Argentina would buy plums domestic consumption of prunes producers and organisations 12 000 of which live in San Rafael from Chile as the US, other through introduction of govern- have met in Argentina to and General Alvear. “The only nations are too expensive and our ment food schemes, thereby discuss this year’s shorter market alive is grape,” Pietreli neighbour can ship quicker and giving a boost to the industry prune harvest. Production said. “The rest is dead at the freight is cheaper. It is not unusual when it needs it most. estimates for this year were moment.” for both countries to exchange raw Senator Ernesto Sanz added to slashed to 15 000 dried tonnes Processors are keen to import material, it often happens. The real all of this that the prune industry in February following frosts more prunes to support the indus- question is, will all processors be should be better organised. He and an increase in processing try while producers are either able to import? I think the big ones suggested that the country’s costs. opposed to the idea or are asking will, but it will be very expensive D’Agen prune industry will form There are now fears that Argen- processors to buy first from for smaller processors. Loans are an association to organise plum tina will not be able to supply its Mendoza at reasonable prices and harder to get and there is not such and prune production, along the export markets with enough then import product. low interest. I would not be sur- same lines as COVIAR for the prunes in 2012, so the industry has The argument for importing prised if we see some smaller grape and wine industry. begun discussions to see how product is strong: if domestic companies getting into difficulties FOODNEWS’ source said the much product is stock-piled across product is scarce, imports will this year; we may even see some idea was a good one but may not the country and how much is keep the prune industry in busi- closures. We will have to see,” he work in practice. “More industry needed by processors. The ness and allow the country to said. organisation would be good as problem appears to be that pro- supply markets that it has spent a “Internal costs are always producers and processors are ducers, processors and prune great deal of time investing in and rising. It would be better for pro- poorly informed. What is needed organisations are not communicat- growing. cessors to pay even less for raw is more transparency so all parties ing the situation effectively. An Argentine trader questioned material to be profitable, so pro- can see the costs involved from According to processor, Luis on the subject told FOODNEWS: ducers who complained of low production of raw material to pro- Pietreli, who attended the meeting, “It is likely that we will see prices last year will like this year’s cessing costs and eventually sales there are a number of problems imports of plums to process here pricing even less. Their costs have costs. Argentina has tried this sort facing the sector at present: low in Chile to then re-export. Argen- also gone up. This year is a real of organisation before though and profitability, rising costs in dollars, tina has licences to import product challenge.” it just does not work here. We the exchange rate, customs duty, but it may be that it introduces The secretary of the Rural are more individualist,” he delays in the payment of VAT, port temporary licenses that are not so Society, Marcelo Serrano, concluded. Cashew market awaits northern hemisphere crops BY EMMA SLAWINSKI decline would be temporary”. market might develop going into Samsons also gives its own Current indications for cashew the new northern hemisphere crop estimate for the 2012 kernel price THE current cashew market kernels are USD3.70-3.90 per lb season, the trader noted that this range, pegged at USD3.25/lb – is relatively steady with some for W240 grade, USD3.30-3.45/lb year there was likely to be a better USD3.75/lb. business in the US and for W320 grade, USD3.10-3.25/lb supply. “[A] drop to USD3.00/lb or Europe for delivery April for W450 grade, USD3.15-3.30/lb Vietnam, whose cashews are below will be temporary unless onwards, but not for very for SW320 grade and USD2.80- being harvested now, is said to there is a big crisis and demand large volumes, according to a 3.00/lb for SW360 grade, all fob. have a good crop, while Brazil’s is does not pick up at all. [A] rise to recent report from Samsons A UK trader told FOODNEWS looking better than last year. USD4.00/lb or above will happen Trading Co. that business had been very slow in “Last year [the high peak price] only if there is a big problem in “Most buyers want to see the the last two to three weeks. Offers was on the back of a terrible Bra- northern crops and RCN prices trend of retail off-take before based on a price of USD3.35-3.40/ zilian crop, which this year has not move up from current levels.” taking on large positions for for- lb fob for W320’s have failed to been so bad. I think we’re going to This might be cold comfort to wards,” the report said. spark interest among customers, see much more stable prices.” traders in Europe if demand has “Also, they feel that with the who are seeking a level along the Kernels are currently priced really decreased as much as some large Northern [hemisphere] crops lines of USD3.60/lb delivered: lower than the 2011 average and believe. starting in a few weeks, prices “We’re not taking part in that busi- close to the 2010 average and if “Demand in Europe has fallen should ease. Shellers are also not ness – I don’t know if anyone else prices declined 5% they would be away. Contracts made 1-2 years in a hurry to make any large sales is,” the trader remarked. below the 2010 mean, Samsons ago have run out. Items have been until they have an idea of 2012 Both buyers and sellers seem to points out. delisted,” said the UK trader, RCN (raw cashew nut) pricing,” it be waiting to see if prices will drop “The lower levels can be sus- adding that customers tell him added. further. tained only if the RCN prices there has been a 30-40% decrease The supplier notes that if “We feel that the prices have to come down substantially (keeping in demand. demand remains slow in March drop. At the moment there’s not in mind that processing costs, US and Chinese buyers may be and April, cashew kernel prices enough demand for [current which are about 40% of current in the market, but Europe is cur- could slip by 5-10% during peak prices] to be sustained. kernel price, are unlikely to go rently barely participating, the arrivals, “but we feel that such a Looking ahead to how the down). trader concluded.

16 www.agra-net.com © Informa UK Ltd 2012 - FOODNEWS® 2 March 2012 Dried Fruit & Nuts

Indian grape growers stop raisin News In Brief Macadamia sector trading to improve raw prices prepares for crop AUSTRALIA’s macadamia BY JENNIFER WILLIS-JONES ensure sufficient returns on raisins their produce for less than industry is hoping that this in the current season,” Arve INR100/kg. Despite being against year’s harvest will yield bet- GRAPE growers in Sangli explained. free market policy, Arve com- ter results than recent years. and Solapur districts in India During a meeting the associa- mented. “If traders can form In order to better prepare have boycotted trading in tion held with traders on 24 syndicates and buy our produce at farmers to “harness the full raisins in protest against the February, attempts were made to low rates, we also should unite potential of this year’s crop”, low prices being quoted by convince them to offer better and fight for higher prices. There the Australian Macadamia traders. The Sangli divisional prices for raisins, but no decision is more investment in raisin busi- Society (AMS) is holding a chairman of Maharashtra was reached. Sangli and Solapur ness as farmers have to segregate series of workshops for state grape growers’ associa- districts produce up to 70 000 the grapes as per their size and growers in the major pro- tion, Subhash Arve, has tonnes of raisins every year, fol- colour and, then, wait until they ducing regions on the backed the farmers in their lowed by Nashik district and dry.” Australian east coast. decision. parts of Karnataka, which jointly Baburao Mane, a farmer, told “Everyone is super keen to According to The Times of produce nearly 30 000 tonnes. The Times of India: “Unlike capitalise on what is shaping India, no business has taken place A similar issue surfaced in grapes, I have to sell raisins only up to be a good season,” said in the last three days in Sangli, 2008, when traders offered a to traders, as the end customers Warren Elvery, manager of Pandharpur and Tasgaon markets. lower rate for raisins due to a are used to buying raisins from New South Wales’ biggest “The minimum price of raisins bumper crop of grapes. Trading shops. Thus, I have to dance to macadamia orchard, should have been INR200 was closed for almost a week in the tunes of traders. If traders are ‘Victoria Park Plantations’ (USD4.03) per kg, but traders are Sangli, Tasgao and Pandharpur going to sell raisins at a higher in Rous Mill. Australian offering INR50/kg. It is an insult markets as a result. The then state price, they should not force macadamia growers are also to the efforts and hard work by marketing minister finally had to farmers to sell them at lower investing around AUD3 mil- farmers. Traders need to under- intervene in the matter. rates. Their profit is ensured, lion (with a further AUD1 million contributed through stand that if they want farmers to The grape association is now anyhow, and we have no com- government-matched funds) grow grapes next year, they must appealing to farmers not to sell plaint against it.” in research and promotion. “The industry is looking to Olam announces African investment plan 2012 for a change of fortunes. Early indications are OLAM International Ltd. is initiative by sourcing more cashews executive, Sunny Verghese. promising, and the AMS will from a greater number of local “The new processing plants sig- planning major investments do whatever we can to assist in the Ivory Coast in cashew farmers. nificantly bolster our cashew and growers to maximise their and cocoa processing, to Olam has also announced a new dairy supply chains in West Africa, full potential,” said Jolyon total XOF100 billion dairy processing plant in Abidjan delivering greater control over Burnett, chief executive of (USD198.1 million), writes – the first of its kind in Africa, and product quality and traceability, Emma Slawinski. according to Bloomberg, plans to which are issues of vital concern to AMS. Bloomberg reported that the invest XOF30 billion in a cocoa our customers... Apart from gener- commodities and ingredients processing plant in the western ating local employment in these Aussie industry upbeat company opened a 30 000-tonne town of San Pedro and double plants, we are also improving the AUSTRALIAN dried fruit capacity cashew factory in Bouake cotton growing in the north to livelihoods of the farmers and their producers are optimistic for on 23 February. 50 000 hectares. communities.” this year as the market has The new plant is “the first “Olam is investing in the future The company, which has been opened with high prices, fol- among many such cashew process- of Côte d’Ivoire where we see huge sourcing cashew nuts from Ivory lowing heavy rain and flood- ing plants planned in West Africa”, potential for unlocking mutual Coast for 22 years, has been ing in 2011. The dried fruit Olam said, adding that the Bouake value through economic and social involved in various agricultural harvest has now begun in facility would allow it to extend the engagement with a multitude of and food sectors for nearly two Victoria’s Sunraysia region reach of its fair market price local stakeholders,” said chief decades, added Verghese. and is looking promising, after years of stagnant markets and crops destroyed by Profood opens dried mango museum weather. Dried Fruits Australia’s chairman, Mark BY JENNIFER WILLIS-JONES up this gallery is for tourists to forms but will also give tourists, King, told the country’s have a new place to go when on both domestic and foreign, the ABC that just 7 000 tonnes THE Philippines’ largest vacation in Cebu,” Profood’s pres- chance to see Cebu’s pride on the of fruit were salvaged last manufacturer and exporter ident and chief executive officer, clean production of our mangoes,” year. He is now pleased that of processed food, Profood Justin Uy, said. Visitors will be the DOT director, Rowena Monte- prices have hit AUD2 200 International Corp, has built allowed to sample products and cillo, said. (USD2 367) per tonne for a gallery to showcase dried will be shown audio and video Profood currently processes 15 top-grade fruit for the first mangoes, one of its most presentations on Philippine different types of fruit such as time ever. “If it stayed at the popular exports. It is thought mango. mango, green mango, soursop, figure it is now for the next that the gallery will initially “The Department of Tourism banana, oranges, lemon, coconut, three, four, five years, I think be opened up to Koreans (DOT) is very pleased as it will pineapple, guava, Cavendish you would have a lot of through travel packages. not only showcase the Philippine banana, passion fruit, jackfruit, happy growers out there,” “The main purpose of putting mangoes in different product mangosteen and tamarind.

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0375_VJ_Foodnews data library.indd 1 22/02/2011 11:51 Frozen Foods NEW Now includes Buyers opt for new origins as News In Brief tables from IPO on the cards for FOODNEWS 100 demand for blackberries soars Pinnacle Foods BY EUGENIE BRYAN The supply outlook isn’t helped is still weak and the IQF trade US FROZEN and packaged and Juice Data with news that some Mexican remains slow. foods company, Pinnacle US TRADE in frozen fruit packers of frozen blackberries may “Chilean prices aren’t as low as Foods Group, could be on supplements continues to be one of mixed have a worm problem.” they were. So, even if the domestic the verge of an IPO, after its fortunes; prices are holding US sales of IQF raspberries straight pack, which accounts for a owner, Private equity firm, firm for some commodity remain weak and heavy global big chunk of trade, is good, the Blackstone Group, began items, while sales of other inventories have suppressed juice and frozen market will drag interviewing banks to handle fruit remain “steady to slug- demand in North America and them down – prospects really a possible flotation. gish”, sources told Europe. Although the domestic aren’t that good now for domestic Bloomberg reports that FOODNEWS this week. raspberry crop is not due until this raspberries.” Blackstone has interviewed Blackberry of any description summer, raspberries were a hot Domestic IQF raspberries are banks including Goldman – Evergreen, Marion, or imports topic of discussion among US now generally being quoted at Sachs Group, Barclays, – appears to be the most popular traders who attended the recent 1.30-1.40/lb fob north-west; before Credit Suisse and Bank of frozen fruit item with buyers at Western Frozen Food Convention having to succumb to cheaper America. According to present. Until relatively recently, in San Diego. Chilean prices, the level ranged unnamed sources, domestic blackberries virtually One of the attendees told from USD1.70-1.80/lb. Blackstone plans to take had a guaranteed market, as they FOODNEWS: “Even though we Meanwhile, the consensus is Pinnacle public in the next were the favoured product for know there has been bad weather in that the US frozen blueberry two quarters, and an IPO many manufacturers. In recent Europe this winter, we don’t think market is more relaxed than it was would value the company at years, an increasing number of US it’s going to have a negative a year ago. There is currently ample USD4-5 billion, the newswire processors have opted to import impact on the market for frozen fruit available and prices are down, says. Pinnacle, which was Chilean and Mexican blackberries raspberries here in the states this about USD0.30/lb lower than this purchased by Blackstone in instead, not least because they are summer. time last year. IQF cultivated blue- 2007, markets frozen ready traditionally a cheaper alternative “Expectations are that prices berries are being offered at meals and vegetables under to US fruit. However, while there will stay cheap. We are not seeing USD1.70/lb fob north-west and brands including Birds Eye, are currently some relatively any sign that US traders are buying packers are reportedly comfortable Aunt Jemima and Hungry- cheap frozen blackberries entering everything out of Chile right now, with this level. Man, as well as snacks and the US from China, prices are gen- because of potential crop damage California’s strawberry harvest, bakery products and ambi- erally firm. in Europe. due in April, is the first major US ent packaged goods. “Blackberries across the board “Prices for IQF Chilean rasp- fruit crop destined for processing in are really short in terms of supply. berries are in USD1.30/lb range 2012. Currently, frozen strawberry Ben & Jerry’s goes We are being offered blackberries delivered west coast, which is prices are high and availability is Greek from Chile, but buyers here say cheaper than last year, so buyers limited, although cold storage BEN & JERRY’s is the lat- quotes of USD1.40 per lb delivered are happy. However, in terms of figures are somewhat higher than The Foodnews data library est company to jump on the US are too high,” a US source said. domestic raspberries, the industry last year. Prices for domestic IQF US trend for Greek-style includes 1,200 data fi les, “If you can get them, domestic is apprehensive about prospects for strawberries range from USD0.95- yogurt, with a new line of prices are also about USD1.40/lb. the 2012 season, as the juice market 0.98/lb fob California. dating back two years, for frozen treats. Greek yogurt every product sector covered Foodnews data library is enjoying a surge of popu- SunOpta to cut jobs as part of reorganisation larity in the country, thanks by Foodnews including: to its perceived health bene- SUNOPTA, the North Amer- ingredient operations of the former a result of the reductions, during the fits, as it contains more pro- ican ingredients and fruit group have been moved to the first half of fiscal 2012. Specific now available online tein than standard yogurts, ✔ packaged foods company, is existing ingredients group. measures will also be taken to Beers & soft drinks while still offering low-fat launching an internal restruc- SunOpta said that as part of the improve future earnings and gener- variants, and typically has a ✔ Business intelligence turing operation to tackle its reorganisation it will reduce its sala- ate positive cash flow over the year. richer and creamier texture. Foodnews has placed its data bank online, underperforming businesses ried workforce by approximately With regard to its upcoming ✔ Canned foods Ben & Jerry’s latest release and boost earnings, reducing 6% and reduce annual operating fourth quarter 2011 results, SunOpta shows the eagerness of food ✔ its workforce by 6% in the costs by approximately USD3.0 said it expected to report a loss of Chocolate & confectionery FREE to all subscribers companies to capitalise on process. million before tax once the process USD0.11 per diluted common this major trend. The ice- ✔ Dairy The targets of the operation is complete, adding that share and a loss from continuing cream company’s Greek fro- include “certain underperforming USD500 000 in one-time severance operations of USD0.06 per diluted ✔ Dried fruit zen yogurt range consists of Visit www.foodnews.co.uk/datalibrary business operations in the food costs are expected to be incurred as common share, for the period. four flavours: strawberry group”. SunOpta Foods will be ✔ Fresh produce shortcake, raspberry fudge restructured “to align its operating to start downloading your data fi les now chunk, banana peanut but- ✔ Frozen segments with the markets and cus- Frozen vegetable side dishes ter and blueberry vanilla tomers serviced, rather than by CALIFORNIA-based frozen produce company, Lisa’s Organics, ✔ graham. The products will Herbs & spices product groupings”, the company has introduced a new range of vegetable side dishes. Made with be available throughout the said. As well as eliminating the organic produce from the US and Canada, the side-dishes feature ✔ Juice US in pint-sized cartons and former fruit group, a new consumer “chef-inspired” sauces and include south-west vegetables in ran- mini cups for some of the ✔ products group has been created to chero sauce, California vegetables in balsamic glaze and broccoli Nuts flavours, with suggested focus on non-grains based con- florets in gorgonzola sauce. The 12oz bags (made from recyclable pricing of USD4.39 and ✔ Seafood sumer packaged goods. It will house materials) are on sale in natural food stores across the US, includ- USD1.29 respectively. ✔ Tomatoes the frozen foods, healthy snacks and ing Whole Foods. food solutions operations. The fruit ✔ Wines & spirits © Informa UK Ltd 2012 - FOODNEWS® 2 March 2012 www.agra-net.com 19

0375_VJ_Foodnews data library.indd 1 22/02/2011 11:51 Wine & Spirits Serbian Brazil considers measures to wine exports take off protect domestic wine industry SERBIA has doubled the BY VLADIMIR PEKIC domestic wine industry, was first technology,” said Alceu Dalle value of its wine exports from requested by Brazil’s wine indus- Molle, Ibravin council president. USD8.5 million in 2004 to BRAZIL’s president, Dilma try in August 2011 and once again According to Dalle Molle, the USD17 million in 2011, yet the Rousseff, has announced that on 16 February this year. Industry problem is that fine wines are country has used up only her government could take officials are afraid of the possible being imported at accessible prices 51.3% of its annual quota for action to protect Brazil’s effects of increased imports when and are able to compete with Bra- exports of bottled wines to the wine industry from all types Brazil is expecting a bumper wine zilian table wines in some cases. EU, government officials in of “predatory commercial grape harvest this year. Nevertheless, imports of Belgrade have revealed. practices”, in a speech given Brazil’s Wine Institute foreign wines in 2011 increased Vladimir Pekic writes: Serbian at the opening ceremony of (Ibravin) requested the introduc- by just 3%, which was much less wine exports to the EU increased the country’s 29th National tion of restrictions on imports of pronounced than the 27% increase from 1.05 million litres in 2010 to Grape Festival in Caxias do fine wines, which are seizing an registered in 2010, according to 5.33 million litres in 2011, while the Sul. ever greater share of the Brazilian Ibravin. value of exports rose from USD1.07 “You can be certain that the market. The share of foreign The Brazilian Ministry of million in 2010 to USD4.17 million Brazilian government will imple- wines in the Brazilian market Development, Industry and Com- in 2011. In 2011, Serbian wineries ment all available measures increased 192.4% between 2002 merce is expected to announce in produced less than the country’s envisaged by the World Trade and 2011, up from 26.5 million March whether it favours a possi- ten-year (2002-2011) average of Organization to address these litres to 77.5 million litres. Chile, ble launch of the safeguard process 164.59 million litres, but the wine asymmetric and harmful commer- Argentina and Italy jointly against imported wines. Ministry quality is satisfactory, said Darko cial practices, including … account for three-quarters of Bra- officials in charge of analysing the Jaksic, an advisor for wine and viti- safeguard measures,” Rousseff zilian wine imports. request from the national wine culture at Serbia’s Ministry of said in mid-February. The intro- “We are facing unfair competi- industry have still not concluded a Agriculture and Trade, on 27 duction of safeguard actions, tion coming from Mercosur. We technical study on the state of the February. which could restrict wine imports need a breather in order to increase sector and the possible threat from Serbia currently has around 200 temporarily to protect the competitiveness and invest in imports. registered wineries and leading white wine varieties are Riesling Italico, Riesling, Chardonnay, Portugal sees dessert wine exports fall Zupljanka and Sauvignon, while dominant red wine varieties are BY JENNIFER WILLIS-JONES generator of this growth”, since million were shipped to the Cabernet Sauvignon, Prokupac, the value of exports in this country last year, showing an Merlot, Vranac and Pinot Noir. PORTUGAL’s wine sector segment represented 51% of the increase of 27.9% and 30.6% Last year, the Central European grew by 14% in volume (2.97 total. respectively. Free Trade Agreement (CEFTA) million hectolitres) and 3.6% According to the IVV, sales of Figures reveal that the main zone absorbed 38% of Serbian wine in value (EUR675 millions) dessert wines, which have tradi- destinations for Portuguese wines exports by volume, followed by the last year, representing 1.6% tionally been the sector’s biggest remain unchanged. They are: EU with 35% and the rest of the of the country’s total exports exports, have fallen 3.4% in Angola, the UK, France, Brazil, world with 27%. The EU accounted by value, the Institute of volume and 3.3% in value “essen- Germany and the US. However, for just 9% of Serbian wine exports Vines and Wines (IVV) has tially because of a reduction in the UK saw its Portuguese wine in 2010. announced. For the first time volume of Port and Madeira wine imports last year drop 2.6% in CEFTA wines accounted for ever, still wine sales have shipments”. value, while the US saw a fall of 90% of Serbian wine imports by overtaken those of dessert Despite this disappointing per- 4.1%. Brazil (+18.7%), France volume, while EU wines were wines. formance, the average price of (+6.8%) and Germany (+5.5%) all responsible for 9% of Serbian wine Still wines (up 22% in volume dessert wines has not shown a saw growth. imports in 2011. and 10% in value) were “the main “negative pattern”, since the varia- China also features as a buyer tion was -0.5% for Port, while the of Portuguese wine, with “inter- price per litre of Madeira rose esting levels of growth”. The Vineyard upgrade 12.3% last year. country imported 123% more Por- Meanwhile, Portuguese spar- tuguese wine than in 2010, JIDWEI, one of Romania’s largest wine producers, has announced kling wine exports, which make increasing 91.7% in value, that it is to invest EUR10.7 million (USD13.9 million) in 2012. up just 1.6% of shipments in the although the average price paid Colin Graham writes: the money will mostly be spent on re- sector, have continued to grow, fell by 14% to EUR1.35 per litre. planting some of its vineyards, installing grape support systems, “with increases of 25% in volume Analysis of the price paid per irrigation and buying machinery. and 46% in value”. The IVV high- litre in the 25 largest export desti- “Jidvei’s investment programmes are scheduled over a number lighted the fact that sparkling wine nations revealed that the Finnish of years and are co-financed by EU funds,” Ioana Anghel, PR exports surpassed EUR10 million (EUR3.71) and the Canadians manager of Jidvei, told the local business daily Ziarul Financiar. last year. (EUR3.12) paid the most for Por- “We are implementing a EUR20 million plan for 2010 to 2013, As regards export destinations, tuguese wine (excluding Port and which will include EUR10 million from the company’s own excluding those for Port or Madeira wines). Conversely, resources.” Madeira wine, former Portuguese Guinea Bissau (EUR0.62), Last year, Jidvei spent EUR6.5 million on upgrading its colony Angola is the biggest buyer Mozambique (EUR0.69) and São operations. of Portuguese wines. Some Tomé e Príncipe (EUR0.76) paid 627 474 hectolitres for EUR71.9 the least.

20 www.agra-net.com © Informa UK Ltd 2012 - FOODNEWS® 2 March 2012 Business Intelligence Fewer UK food and drink M&As last year but outlook improving BY EMMA SLAWINSKI volume of m&A deals in uk The second factor is an increase in pent-up demand for THE number of mergers, this type of expansion in the UK’s acquisitions and other deals food and beverage sector, Rowe in the UK food and beverage said, due to more than two rela- sector dropped in 2011, to tively slower years in the M&A 106 from 123 in 2010, accord- arena. ing to financial advisers, In terms of the types of deals Gambit Corporate Finance that occurred in 2011, acquisi- LLC, yet the firm sees poten- tions represented 67% the total, tial for an upturn in the DOWNLOAD DATA and start-ups just 7%, while deals number of deals as more for development capital repre- companies look beyond CLICK TO sented 10%. organic growth and set their Asked whether start-ups were sights on acquisition. being hampered by banks’ reti- In a recent report, Gambit said cence to lend, Rowe suggested the reduction reflected “a degree of that the low rate was likely part of caution and a focus on internal a more inherent pattern due to the operations”. Compared with 2009 nature of the UK market. figures, the drop is even steeper: “That goes straight to the core that year there were 169 deals in Without this deal, the average size rationale to do a deal during that of the food and beverage sector the sector. Those deals that did take for Q4 2011 would be GBP38 period but obviously people are and the dominance of the multiple place were often dictated by neces- million, compared with GBP50 looking at how to grow share- grocers... if you set up a factory sity, according to company partner, million in 2010. holder value and with limited and decide to produce high food & beverage, Geraint Rowe. Though tough economic con- organic growth opportunities, we quality produce how long is “Clearly in terms of the general ditions have stifled the desire to expect to see a reasonable increase before you’re going to get listed environment there were a number expand through acquisition, in the level of M&A transaction by anybody with any reasonable of deals that were stressed and dis- Gambit foresees an improvement activity.” volume? tressed so when you look at the in the medium term – possibly Rowe believes that large com- “So it’s about commercial average deal size you’ll see since even within 2012. This could also panies with liquidity are now factors that are not specifically to the economic downturn a reduc- be helped by an increase in banks’ warming to the idea of new deals. do with lack of availability of tion in the average deal size,” willingness to lend. “There are still those under- debt finance.” Rowe told FOODNEWS in an “Valuations have stabilised,” capped businesses that are So 7% may be a relatively interview. said Rowe. “Essentially within the stressed or distressed, but I think normal share for start-ups, FOOD- The average deal size for the upper-middle market and the the two things that have changed NEWS asked: “I think that’s right fourth quarter of 2011 was GBP93 larger corporate there is cash and in the last two years are that large and I think the landscape for start- million (USD147.4 million), liquidity and part of the issue of corporates with liquidity are now up businesses is going to remain though this was distorted due to course with the economic down- looking at growth, and growth by tough,” Rowe said. the acquisition of RBS’ Galaxy turn is that business managers sat acquisition, being more demon- By segment, most deals were Pub Estate by Heineken in a on their hands in 2009-10. strably available than organic done in the beverages sector GBP422 million cash deal. “You needed a pretty strong growth for shareholders.” continued on page 23 FOODNEWS’ PICKS: KEY DEALS IN 2011 FOODNEWS has picked out Chocolate, confectionery Ingredients and flavours UK food giants some of 2011’s key food and and snacks drink industry deals in the Undisclosed sum Approx GBP60 million UK. As well as the promi- GBP82.0 million Netherlands-based Barentz added Premier foods sold canned pie brand, nence of companies operating Finnish Raisio, which also owns Forum Products Ltd to its stable as Fray Bentos, to soup company, in the confectionery and The Dormen nut snacks company part of a strategy to become “pan- Baxters, for an estimated GBP30 sweet snacks sector, numer- in the UK, bought Big Bear, a European leader in the distribution million, and chilled foods business, ous deals involved ingredients breakfast cereals and snack bars of specialty ingredients”. Brookes Avana, to 2 Sisters Food and flavours companies – led company that is strongly Group for GBP30 million. by a vigorous acquisition brand-focused.. GBP21.77 million in total spree on the part of Fruta- Israeli company, Frutarom, bought GBP342 million rom. Sizeable deals involving GBP0.8 million three UK companies in less than a 2 Sisters, owned by businessman, some of the UK’s biggest UK-based Zetar, pioneers of snack year: Savoury Flavours for Ranjit Singh Boparan, saw off com- food companies showed that foods under licence for brands such GBP3.77 million; East Anglian petition from Greencore to acquire a the majors have not lost as Marmite and Reggae Reggae, Food Ingredients for GBP3.0 major manufacturer, Northern their appetite for acquisition purchased a small confectionery million and Aromco for GBP7.7 Foods, among whose brands are either. business, Derwent Lynton. million. Goodfellas pizzas.

PERSONNEL Poor first quarter earnings but Appointments at G Willi-Food Hormel still upbeat about 2012 ISRAELI kosher foods manufacturer, G Willi-Food BY EMMA SLAWINSKI other’ segment – though this rep- International Ltd. has announced “Grocery products resents only 4% of sales. segment results were the resignation of Talma HORMEL, the maker of “I was pleased with the strong Barbash Knoller as an external SPAM canned meat, has results achieved by our Jennie-O adversely impacted by director, and that the Board of announced a drop in earn- Turkey Store segment, led by Directors has nominated Ayelet softer sales in the centre ings for the first quarter of increased retail value-added sale,” Eliav as her replacement, subject of the store,” to shareholder approval. 2012, despite an increase in said Jeffrey Ettinger, chairman of Barbash Knoller resigned for net sales. the board, president and chief Mexican-style packaged and con- personal reasons, the company Earnings before taxes fell 15% executive of Hormel. venience foods. said, while thanking her for her to USD194.3 million, even as net “Our International business The company expects a better contribution to the company. sales rose 6% to USD2.039 billion. also delivered a solid quarter, performance in the second half of Eliav, 42, has been serving as Strong sales increases came from fuelled by strong export sales. 2012. chief executive of AEL Ltd., an the speciality foods and refriger- Results of our refrigerated foods “We continue to look for importer of name-brand shoes, ated foods segments (+14%, +7% segment were hindered by signifi- slowly improving results from our since 2006. Eliav is a certified respectively). Jennie-O Turkey cantly lower pork operating refrigerated foods segment as pork public accountant (Israel). She Store, which markets refrigerated margins, and our grocery products operating margins return to more holds a LLB from the Interdisci- and frozen turkey product and is segment results were adversely normalised levels,” said Ettinger. plinary Center in Herzliya, the second largest segment, saw a impacted by softer sales in the “Sales in our grocery products Israel, and received a BA in 4% increase in sales. centre of the store,” commented segment and meat products group Accounting and Business Man- Operating profit was weakest Ettinger. should also improve, as we begin agement from the College of in the refrigerated foods segment, He also said the company was to see the effects of our new adver- Management in Tel Aviv, Israel. falling 44% to USD53.7 million, “encouraged” by the performance tising campaigns supporting our In addition, the Company and also fell in grocery products, of the MegaMex Foods joint HORMEL and SPAM brands.” announced that the Board has refrigerated foods, and speciality venture, formed in 2009 with Hormel maintains its full-year appointed Gil Hochboim as foods, but grew 4% in Jennie-O Herdez Del Fuerte, SA de CV earnings guidance of USD1.79- temporary chief executive of the Turkey Store and 25% in the ‘all which includes a variety of 1.89 per share. company. Hochboim, who re- places Kobi Levi, will serve as chief executive until a perma- Russia banana importer goes bankrupt nent candidate is appointed. Hochboim, 42, cur- BY JENNIFER WILLIS-JONES creditors of the company and to losses JFC currently shows some rently serves as vice president continue operations”. symptoms of temporary insol- with responsibility for mergers ONE of Russia’s largest fruit “In 2011, the unrest of the vency. Our address to the court and acquisitions and general importers, the Joint Fruit international market caused par- follows the demands of the law operations and previously served Company (JFC), has filed for ticularly by the events of the Arab and our wish to continue opera- as chief financial officer of the bankruptcy as a result of Spring led to the bankruptcy of tions as well as to protect the Company. instability in the interna- numerous companies…JFC has creditors. tional market last year been making about 30% of its “I want to stress that our credi- Hormel vice-president caused by the Arab Spring. sales in the southern Mediterra- tors understand the nature of our HORMEL Foods Corporation, JFC is the main importer of nean and faced significant losses problems and agree that these are the maker of Spam canned meat, bananas into the Russian due to the disruption of business temporary and are ready to reach has announced the advancement market and has a 40% share relations, loss of markets and the compromise in developing new of Luis G. Marconi, managing in sales of the fruit in the emergence of bad debts.” schemes of debt repayment. JFC director of MegaMex Foods of country. Andrey Afanasiev, chief execu- has sufficient resources to con- California, to the post of vice- According to a JFC press tive of JFC Group Company, said: tinue operations and plans to president of grocery products release, the decision was made to “2011 was a bad year for our remain the leader of the Russian marketing at the Hormel Foods “protect the interests of the company. Due to the operational market,” Afanasiev concluded. Corporate Office in Minnesota with effect from 5 March. “Luis is a proven, effective business leader and a strategic thinker UK company buys local frozen firm with a strong commercial South west England-based Morning Foods and Good Morning hotel courtesy, washroom, and mindset,” said James M. Splin- Disposables would complement cleaning and hygiene products. ter, group vice-president of frozen, chilled and grocery grocery products at Hormel company, Charles Saunders, their existing labels well. It is also hoped that the acquisi- Foods. Marconi began his career has acquired Good Morning Good Morning also produces tion will enable Charles Saunders with Hormel Foods in 2000 as Foods and Good Morning seafood, but additionally does to expand into the Midlands and the manager of international Disposables in a bid to meat, cheese and dairy, bakery, South Wales. sales and marketing in the inter- expand its presence in the filler and salad, mayo, sauce and Good Morning Disposables is a national division. He advanced region, Amy Booth writes. pickle, tinned and dried, snacks, family-run business, founded in in 2006 to a senior role in the Charles Saunders, a member of cakes and deserts, drinks and kids’ 1981, but the current owner is now grocery products division as Fairway Foodservice group, spe- products. retiring. manager of international joint cialises in frozen foods and Disposables products include The combined businesses will ventures. seafood. Directors feel that the table ware, crockery, cutlery and continue to operate from their profile of goods offered by Good glass, take away, kitchen sundries, existing sites in Bristol.

22 www.agra-net.com © Informa UK Ltd 2012 - FOODNEWS® 2 March 2012 Business Intelligence Sugar to drive ABF profit growth in 2012

BY EMMA SLAWINSKI with the harsh winter, a strong Profit from ABF’s branded gro- “UK beet processing is factory performance, high sugar ceries (representing 33% of total now almost complete and ASSOCIATED British Foods content in the beet and higher revenues in 2011) will be affected (ABF), the UK food products prices,” the company explained. by restructuring at group compa- sugar production is and clothing retail group, is In Spain the campaign has been nies in the UK and Australia and estimated at 1.3 million expecting a strong perfor- helped by high beet yields, margin declines and higher oper- tonnes compared with just mance in its sugar business improved extraction levels and ating costs in certain other for the first half of the year, record throughput in the North, businesses. The Twinings Oval- under 1.0 million tonnes but has warned that profits in while plantings are complete in tine business has seen good last year.” its grocery business will be the South. The Guadalete refinery growth in sales of tea in the US substantially lower. Overall it near Cadiz is operating near and of Ovaltine malted chocolate markets led to considerable pres- expects that the interim capacity and should produce drink in developing markets. sure on margins and a much lower results will be in line with around 360 000 tonnes of sugar The ingredients segment, too, operating profit,” ABF said. expectations, and adjusted this year. has faced challenging conditions However, the company noted operating profit will be ahead The South African Illovo sub- 2011, with ongoing difficulties in that it was making progress in proof last year. sidiary’s revenues benefited from the yeast and bakery ingredients ductivity at its yeast extracts The sugar segment, which in favourable regional pricing and business. factory in Harbin, China, and this 2011 represented 19% of total profit improved in all countries. “Raw material cost increases combined with growth in enzymes revenue, is poised for profit “sub- Although the cane cultivation area and a highly competitive trading delivered a profit improvement at stantially ahead of last year” in the was increased, due to severe environment in many of our the ingredients business. first half of 2012 closing 3 March, drought in South Africa and lower the results for which will be sucrose levels in the cane through- continued from page 21 from brands, that landscape announced on 24 April. out the region, sugar production is (27%) followed by the meat, fish differs depending on what sub- In the UK, beet processing is expected to be lower and poultry segment (20%) and sector of the food market you’re now almost complete and sugar year-on-year. the fruit and veg segment (13%). in and I think, you know, there production is estimated at 1.3 Similar difficulties were seen Rowe favours the outlook for still is significant equity -per million tonnes compared with just in China, where drought reduced brands as investment opportuni- ceived in brands. under 1.0 million tonnes last year. cane yields and the sucrose content ties: “I think the areas where “I think foods that have a “Profit in the UK in the first half is lower, and will affect profits for there is continued investor con- particular niche, whether that be will be well ahead of last year, ben- the region, despite greater produc- fidence is branded businesses, dysphagia, whether it be nut- efiting from the absence of the tion in the north-east thanks to and while consumers have defi- free, baby food, are also very higher processing costs associated increased cultivation. nitely switched to own label attractive as well.”

FREIGHT REPORT: Dry bulk ship values continue descent brokers reported that Danish dry ning of the month. The same week, 1997-built, bulk operator Clipper Dry Bulk Brokers also reported Japanese 32 115 deadweight Ken Ann Maru sold its 2002-built 27 141 dead- Orient Marine Company sold its and 1997-built 24 279 deadweight weight Clipper Morning and 1999-built, 32 260 deadweight log carrier Ace Dragon were 2004-built, 27 082 deadweight Aladdin Rainbow for a price around reported sold for prices of respec- Clipper Mercury for a reported USD10.5 million. tively USD9.4-9.7 million and price of USD23-24 million en bloc. According to most sources, the USD7-8 million. The ships, purpose-built for buyer was an unknown Greek Several brokers reported a mini- Clipper at a Chinese shipyard, are counterparty. It was worth almost cape under construction at STX’s SEVERAL small bulker sales valued at a combined USD26.9 USD14 million on the first day of Dalian shipyard being cancelled by at low prices show that the million by online valuation tool February, according to the original buyer after delays. market for dry bulk tonnage VesselsValue, so that the fixture VesselsValue. It is likely the vessel referred to has not bottomed out after represents a significant drop in The most recent comparable is the 2011-built, 105 000 dead- all, and although charter price. deal was the sale of 1997-built, weight Ince Istanbul, which some rates have found their way However, shipbroker Gal- 28 585 deadweight Captain T for a brokers reported having been sold up again recently, asset values braith’s reports that Clipper reported USD11.5 million in late last week for USD32 million. continued to dip last week as Mercury may have been sold with a December: almost 10% higher Finally, shipbroker Galbraith’s all three Baltic asset-value 10-month time charter attached at despite Captain T’s older years and reported a USD17 million deal benchmarks for dry bulk an unfavourable rate of USD10 500 smaller size. involving Kitaura Kaiun’s 2005- ships hit record lows. per day, which could partially Yamaru Kisen’s 1997-built, built, 31 700 deadweight Lupinus, “Deals are taking longer to con- explain the weak numbers. Clipper 28 515 deadweight Diamond Glory, which was earlier reported in clude with buyers deliberating hard declined to comment. a vessel very similar to Captain T, Lloyd’s List, had failed. over the continued depreciation of The Baltic Exchange’s indicator sold for a reported USD9.2-9.5 That number already marked a values,” shipbroker Galbraith’s for small bulkers, which reports the million last week. USD2.5 million decline from the wrote in its weekly sale and pur- average price for a five-year-old In its weekly report, shipbroker last done comparable deal in chase report. 52 000 deadweight supramax, Gibson said it was the first time it November. The trend was most obvious in reached USD23.5 million on had seen a “post 1995-built vessel the handy-size sector, which closed Monday. The index has now fallen hit the single digit level”. It will This article first appeared in most deals last week. Several by USD1.0 million since the begin- certainly not be the last. Lloyd’s List www.lloydslist.com

© Informa UK Ltd 2012 - FOODNEWS® 2 March 2012 www.agra-net.com 23 Weather Watch Rain showers in California, snow in New York but Florida stays dry BY MDA WEATHERSYSTEMS entire us total precipitation (mm) 25/12/2011-25/02/2012 (CROPCAST)

SHOWERS have continued to favour northern crop areas in California this past month, with only a few light showers noted in central and southern areas. Showers should continue to favour far northern areas over the next few weeks. Temperatures have moderated across the region, with only spotty frost noted in the past few weeks. The showers in northern areas will continue to build irrigation reserves across the region, while the continued drier pattern in southern areas will maintain high irrigation usage. In Florida, rains were rather light across much of the region this irrigation supplies. A significant fell as snow in north-west Pennsyl- as rain across south-western New past month, which is resulting in increase in rainfall would be very vania, as well as much of New York into Pennsylvania. high irrigation usage. Showers are helpful to replenish the irrigation York, New Hampshire, and The overall precipitation over expected to remain very limited reserves. Vermont. the past few months has been ade- across the region over the next few In the north east, showers Additional snow is expected quate across northern and western weeks. remained abundant this past month, over the next few weeks across Pennsylvania, northern and western The drier weather will benefit and favoured north-western Penn- north-eastern New York into New York, but is slightly below crop harvesting, but will continue sylvania, and northern and western Vermont and New Hampshire. normal in eastern New York into to lower soil moisture and New York. Some of the showers However, the showers should fall Vermont and New Hampshire. entire us precipitation departure entire us mean average temperature (mm) 25/12/2011-25/02/2012 departure (°c) 25/12/2011-25/02/2012

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US SOFT DRINKS IMPORTS CANADIAN SOFT DRINKS IMPORTS (full year, litres) (full year, litres) 220290 2006 2007 2008 2009 2010 2011 220290 2006 2007 2008 2009 2010 2011 Mexico 125832755 153310597 130726828 109049466 103721514 93885313 US 174871866 175422972 210438314 216882247 215101192 229814431 Thailand 47156707 45049410 40572022 38899125 50753785 77990747 Sw’land 96445 119973 81941 1306698 22047256 10364915 S Korea 16824240 21216191 28378449 32473417 41966306 44516486 Thailand 2421832 3002858 2637371 1958772 2792211 4493419 Taiwan 9548440 9544317 9600569 9218079 13418161 14910065 Germany 2117331 2353592 2643722 2397186 2567563 3576140 Canada 13346885 15371139 12415881 9275747 12021404 11952982 S Korea 1716926 2449213 2781804 2946930 3489494 3506873 Germany 8818668 10795570 9476566 8763666 10282153 10678988 HK 2614687 2110513 3166157 3094833 3230232 3033497 El Salv 2799435 3783779 6766411 5292363 8593446 10551115 Taiwan 1415132 1523677DOWNLOAD 1409458 1411218 1884602DATA 1988248 G’mala 560327 3468279DOWNLOAD 3166780 2278176 5233185DATA 6266188 China 1438034 1420126 1324612 1116685 1544503 1834431 Japan CLICK4117645 TO 4304259 4737970 4272125 5023435 6141811 Ph’pines CLICK1643702 TO 1917950 1769623 1373552 1590601 1783900 HK 3275450 5198157 5412510 5595029 5493961 5763148 Egypt 779083 881013 965307 1187573 1215753 1407583 China 3557816 10288409 9384579 4473127 3670622 4977134 India 399755 841185 688283 1319006 953257 1030223 Egypt 5605315 5848046 5026082 5144942 4837707 4605997 Italy 1478940 863394 1159288 773684 932801 743216 Others 58638501 71378065 57482077 48732985 50430681 50032244 Others 5286307 6437842 5395759 5310186 7226823 5799891 Total 300082184 359556218 323146724 283468247 315446360 342272218 Total 196280040 199344308 234461639 241078570 264576288 269376767 Source: GTIS Source: GTIS

HONG KONG SOFT DRINKS IMPORTS SINGAPORE SOFT DRINKS IMPORTS (full year, litres) (full year, litres) 220290 2006 2007 2008 2009 2010 2011 220290 2006 2007 2008 2009 2010 2011 China 109891221 109697592 108540610 117572600 127169722 124381294 Malaysia 58502105 72448427 74376229 66046634 65904296 70683913 Taiwan 29862822 31600698 28143259 26357955 28735714 26861803 Thailand 11783852 11136927 11102898 12187134 19637150 17165252 Malaysia 4897310 3651536 1793750 1934149 2689701 3552251 Taiwan 4145192 8043413 8808161 12424918 14423628 12536112 Cyprus 83640 987198 1174512 1859049 1447450 3536519 Vietnam 6821046 8588092 7776407 6713987 6603311 7273395 Australia 3596792 3931047 5308554 3868447 3645523 3360814 Indonesia 2461613 1321397 2394928 1493820 2724066 6435345 S Korea 2632131 1784993 2018297 1676722 2398311 2955094 China 2596394 8155897 15285424 4364366 4905181 4945661 Japan 1880870 2711355 2559036 1842375 2358162 2826982 HK 4071971 8469222 6243383 4879708 4269834 4749947 Singapore 3193569 3214573DOWNLOAD 3055348 3205097 2926120DATA 2306182 NZ 7101562 7900332DOWNLOAD 7564881 7438318 6358472DATA 4484492 Ph’pines 2484203 1896487 2180608 1846758 1686357 1864247 AustraliaCLICK2058958 TO 2988809 2355389 1892317 1678510 3556031 US CLICK1407761 TO 1754576 1305248 1282673 1381261 1852490 US 2798428 2177240 2945955 3617552 1900761 1909660 N’lands 845735 762229 776329 734155 824575 1299354 Ph’pines 1923788 4488492 2441542 1953444 1909098 1740747 Austria 515766 783756 943101 1213617 1143111 1275239 Uruguay 0 39600 0 20394 159588 754182 Others 5696422 5114667 5089883 5614730 6762280 5107436 Others 1635991 1744939 2427926 3234874 3821648 4923826 Total 166988242 167890707 162888535 169008327 183168287 181179705 Total 105900900 137502787 143723123 126267466 134295543 141158563 Source: GTIS Source: GTIS

EU-27 SOFT DRINKS IMPORTS (full year, litres) Growing thirst for Asian soft drinks 220290 2006 2007 2008 2009 2010 2011 EAST Asian nations have Canada too, though the volumes Sw’land 48649742 58526224 59011447 43399641 45208805 47162780 been making their mark in the involved are much smaller. Imports Taiwan 5561179 6613014 8179885 9376516 13395869 16344530 soft drinks market globally, from Thailand soared 60% to 4.49 Turkey 6359391 7411615 10058599 10096677 9327358 10766103 with thriving exports in this million litres, from South Korea category. were stable at 3.51 million litres, US 10133853 9406856 10849139 9895952 10115866 10679409 Imports from the Far East to the and from Taiwan grew 6% to 1.99 S Korea 2321483 4315436 5790946 7828935 9910213 10427659 US, one of the top global importers million litres for the full year. Thailand 4538331 6984878 7166596 5887815 6818059 7622003 of soft drinks, appear to be booming, In the Hong Kong market, Serbia 226395 1666634DOWNLOAD 2122216 3437737 8036471DATA 7363966 with shipments from Thailand and which saw total imports decrease South Korea increasing steadily slightly (-1%), volumes from the Egypt 4387422 6455113 6991910 8458713 6883428 6412476 CLICK TO over the last six years, and Taiwan top two origins, China and Taiwan, Ukraine 7932155 9591140 9173298 6089855 7711770 5701728 also showing strong growth more were reduced by 2% and 7% Singapore 5547003 6377083 8067008 7508675 6190935 4982224 recently. Japan has benefited from a respectively. Imports from Malay- Norway 5068744 4502006 4816906 4653706 4124203 4447909 growing appetite for imported soft sia increased by 32% to 3.55 Colombia 3986448 5587765 5281725 5180483 5360981 4382001 drinks, apparently in spite of the million litres, and South Korea and strong yen, and volumes jumped Japan also succeeded in growing Others 45896917 50373172 46610059 41539737 41692713 41463876 22% year-on-year. their market share, with imports Total 150609063 177810936 184119734 163354442 174776671 177756664 This quartet of Asian countries from the countries rising 23% and Source: GTIS fared well in soft drinks exports to 20% respectively.

© Informa UK Ltd 2012 - FOODNEWS® 2 March 2012 www.agra-net.com 25 Download this data at FOODNEWS on-line Market Data Visit www.agra-net.com leading eu-27 soft drink leading japanese mineral water import markets full year (litres) import markets full year (litres)

DOWNLOAD DATA DOWNLOAD DATA CLICK TO CLICK TO

average unit value of eu-27 soft average unit value of japanese mineral AVERAGE UNIT VALUE OF EU-27 SOFT DRINK IMPORTS FULL AVERAGE UNIT VALUE OF JAPANESE MINERAL WATER IMPORTS drink imports full year YEAR(usd/ (USD/LITRE)litre) water imports full yeaFULLr (us YEARd/litre (USD/LITRE))

5 0.9

4.5 0.8

4 0.7

3.5 0.6

3 0.5 2.5 0.4 2 DOWNLOAD DATA 0.3 1.5 DOWNLOAD DATA 0.2 1 CLICK TO

CLICK TO 0.1 0.5

0 0 Switzerland Taiwan Turkey US S Korea World Average France US S Korea Canada Italy World Average

2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 © Agra Informa Ltd SOURCE: GTIS © Agra Informa Ltd SOURCE: GTIS market share of eu-27 soft market shaMARKETre of j SHAREapanese OF JAPANESEmineral MINERAL WATER IMPORTS MARKET SHARE OF EU-27 SOFT DRINK IMPORTS FULL drink imports full year 2011 FULL YEAR 2011 YEAR, 2011 water imports full year 2011 UAE 0.8% Taiwan Others Turkey Italy Germany 0.9% 1.3% 4.1% 1.3% 0.7% Switzerland Canada Others 26.5% 6.1% 31.1%

DOWNLOAD DATA S Korea France 10.3% 44.2% CLICK TO DOWNLOAD DATA CLICK TO Taiwan Ukraine 9.2% 3.2% Egypt Turkey US 3.6% 6.1% 30.2% Serbia Thailand S Korea US 4.1% 4.3% 5.9% 6.0% © Agra Informa Ltd SOURCE: GTIS © Agra Informa Ltd SOURCE: GTIS

SWITZERLAND remains the for the past 10 years at 16.24 million JAPAN continues to favour and Italy are still shipping very largest provider of soft drinks litres in 2011. The country’s market France as a supplier of small amounts in comparison, but to the EU-27 by a country share, however, is still small at just mineral water, with a 44.2% South Korea has shown interesting mile, with imports from the 9.2%. share of the market, but the growth since 2009 and now has a destination recovering gradu- Turkey (6.1%) and the US US is hot on its heels with a 10.3% share at 60.85 million litres ally from a nosedive at the (6.0%) have seen imports of their 30.2% share, according to the in 2011. peak of the economic crisis in soft drinks remain steady over the latest data. Both countries Analysis of average import unit 2008-09. Data for last year past decade, but South Korea is saw 260.57 million litres and value reveals that France had the shows imports of Swiss soft growing rapidly from negligible 178.11 million litres respec- highest figure in 2011 at USD0.85 drinks at 47.16 million litres, amounts in 2001 to 10.42 million tively, shipped to Japan last per litre, with Italy in second place with a market share of 26.5%. litres in 2011. year following the earthquake at USD0.63/litre. South Korean Taiwan is now the second As regards import unit value, the and tsunami disaster in the bottled water, in comparison, was biggest provider of soft drinks to the US topped the table last year at country. just USD0.30/litre last year. The EU-27, and imports from the USD3.93 per litre, but the overall Other mineral water suppliers to global average was nearer that of country reached their highest point average was USD1.51/litre. Japan such as South Korea, Canada Italy at USD0.60/litre.

26 www.agra-net.com © Informa UK Ltd 2012 - FOODNEWS® 2 March 2012 Download this data at FOODNEWS on-line Visit www.agra-net.com Market Data

EU27 MINERAL WATER IMPORTS JAPANESE MINERAL WATER IMPORTS (FULL YEAR, TONNES) (FULL YEAR, LITRES) 220110 2006 2007 2008 2009 2010 2011 220110 2006 2007 2008 2009 2010 2011 Turkey 42059 53775 34720 33814 29057 29618 France 364898493 367444598 309276829 244939006 233881268 260578790 Norway 10055 8211 16769 15019 17532 16701 US 140529253 169026467 152442603 130369602 131375924 178112627 Croatia 5682 8381 10591 12006 13274 14552 S Korea 2169680 2337687 1307608 2327534 11635362 60851273 Georgia 7817 9991 9495 6152 9712 11908 Canada 17291711 11590574 10744075 14654331 12852556 35903893 Sw’land 5637 6305 5196 5140 9170 11322 Italy 16991229 13364502 12611124 11350898 14292531 24431283 Belarus 12745 12474 12828 10852 10435 11134 Germany 2266476 3820491 4485438 5483568 7156277 7946415 Fiji 739 1098DOWNLOAD 1001 1067 DATA 1017 1277 Taiwan 35096 32452 55536 0 49752 5148865 Russia 468 846 604 584 625 837 UAE 3872613 8346093DOWNLOAD 4940551 4888710 3367800DATA 4730762 Iceland CLICK678 TO 613 841 528 818 804 Turkey 0 0 72072 336336 1244568 4275815 Serbia 1453 2164 1169 991 885 746 MalaysiaCLICK0 TO 84960 486710 1236990 283472 1411236 Albania 530 532 302 352 498 561 Fiji 0 254856 410173 171600 288846 1074455 US 637 1271 657 968 788 508 Ph’ppines 0 0 0 242511 752949 911489 Others 5782 6201 4560 3586 3238 2827 Others 4565676 4506592 2843497 2971069 1794049 4198339 Total 94282 111862 98733 91059 97049 102795 Total 552620227 580809272 499676216 418972155 418975354 589575242 Source: GTIS Source: GTIS

US MINERAL WATER IMPORTS SINGAPORE MINERAL WATER IMPORTS (FULL YEAR, LITRES) (FULL YEAR, LITRES) 220110 2006 2007 2008 2009 2010 2011 220110 2006 2007 2008 2009 2010 2011 France 194377595 200560235 181371321 138459202 143263709 156644950 Malaysia 65647900 74422205 87907706 87288063 97593389 107328227 Italy 117765168 138686600 137335597 122978552 143088659 130513062 France 7940715 9661412 8314700 6419445 6772636 20885083 Fiji 118768742 167198374 127492883 81168352 50883681 82398660 Indonesia 14138451 13055846 11867097 11643383 10598138 11026940 Mexico 26026471 23683544 26372267 26186093 27202611 31041004 Italy 1321548 1411585 1569664 1571208 2144620 2367191 Norway 12829864 16839439 16550342 8251041 11473973 12895328 Fiji 69388 312037 685718 329541 644073 924854 Iceland 21773 1296 245376 5500673 8605300 12420756 Germany 446834 380625 501830 536651 587838 810517 Poland 11256086 12166828 9279820 8622382 9261211 9634657 UK 295680 269118 340533 347794 301347 385654 Germany 13076612 13211626DOWNLOAD 12294494 9830587 6737014DATA 8324401 Turkey 0 0DOWNLOAD 61086 290108 223003DATA 364577 UK CLICK4642957 TO 4916506 3864873 2535187 2938185 3498247 S Korea CLICK48130 TO 50866 55284 114956 122320 191622 Portugal 4404927 4535715 3780332 3330374 3213254 2306188 US 97647 114493 138221 76507 131487 144216 Canada 104458877 84206776 74113822 73478591 24698033 2002803 UAE 51570 209829 125511 205606 252381 133258 NZ 5188680 8911861 6540393 9282469 1351918 1779618 Norway 108815 126450 189630 75183 80656 97772 Others 10991328 11262451 14324945 9380855 18794888 9144600 Others 2168925 2468402 2758828 1006952 769456 556648 Total 623809080 686181251 613566465 499004358 451512436 462604274 Total 92335603 102482868 114515808 109905397 120221344 145216559 Source: GTIS Source: GTIS

SWISS MINERAL WATER IMPORTS (FULL YEAR, LITRES) Fukushima drives imports 220110 2006 2007 2008 2009 2010 2011 JAPANESE mineral water market remained mostly stable. Italy 167623282 169181964 169469481 151354270 151847672 152506572 imports rose to their highest Mineral water imports into the France 117624901 116640522 114764237 126111698 137636559 125639859 levels in at least six years in US were relatively low in 2011, Germany 13691064 13611750 13815838 22776339 25867141 28017990 2011, which can perhaps be although they were up on 2010 Portugal 667384 659819 809627 875883 799620 916610 attributed to increased off-take. demand for safe, imported There was a significant slump Turkey 139332 240273 313900 255117 213134 368345 water after the tsunami and in the market after 2008, and it Austria 195866 1183392 358429 576426 174396 202879 Fukushima disaster. Particu- does not appear to have recovered. Serbia 209314 256155 218325 226192 198451 188364 lar increases were seen from European sources dominated UK 265472 262274DOWNLOAD 155147 161188 DATA 131784 161629 South Korea, Canada and the market, but off-take from Fiji Italy. Turkey and the Philip- also recovered after a trough last Spain CLICK171863 TO 323006 275282 111683 108370 152503 pines saw continued growth year. Slovenia 185910 137157 106932 62721 8300 77038 in their expanding markets. A growing interest in mineral Hungary 179132 140922 84240 164310 95792 76334 The EU also took more mineral water appears to be developing in Kosovo 0 0 0 44928 78516 44327 water last year. However, levels Singapore, which has bought more were still lower than 2007. The most years since at least 2006. Others 4731461 4338344 3985417 2361056 612341 199888 bloc has bought steadily more from Switzerland’s market has been Total 305684981 306975578 304356855 305081811 317772076 308552338 Croatia recently. Off-take from almost entirely flat recently, but Source: GTIS Switzerland, too, was up, but the Kosovo is an emerging supplier.

© Informa UK Ltd 2012 - FOODNEWS® 2 March 2012 www.agra-net.com 27 Industry News China outlines plan to improve “scientific basis” of food safety BY AMY BOOTH Food Safety National Standards the value attached to consumer food safety supervision require- Evaluation Committee was formed. safety by the public, effort should ments and industry development,” CHINA has unveiled a five- Standards are now reviewed be invested in training to ensure the the report encapsulates. year plan to improve its food more quickly, especially those per- industry follows these standards. Two areas of weakness are safety standards and ensure taining to grains, vegetable oil, meat Through its membership of the research and finding staff. The plan they are being upheld. This is products, milk and dairy products, Codex Committee on Food, the comments: “Because of insufficient the twelfth such plan to be alcoholic liquors, spices and bever- MOH has drawn on the experience and scattered professionals, basic released. The USDA pub- ages. A number of standards of other countries to inform its stan- research on food safety standard is lished an unofficial translation overlapped or even conflicted with dards. There has also been a weak in China.” of the report last week. each other, but the Ministry of concerted effort to ensure that stan- Looking forward, a regulatory The draft plan started by outlin- Health (MOH) has now resolved dards are based upon scientific system should be further developed ing recent progress: “In recent most of these issues. advice. over the next five years which years, China has made remarkable The MOH has also put more Despite these efforts, the MOH focuses on protecting public health, achievements [regarding food effort into publicising revised stan- is faced with a number of hurdles. basing risk assessments on scien- safety standards]. A food safety dards, and in particular a number of The industry is developing swiftly; tific advice, and ensuring that the standard system has been estab- new standards regarding milk, addi- the capacity for risk assessment and rules are relevant to China. lished with national food safety tives, fungi and toxins, packaging research lags behind this. Inconsis- The MOH plans to complete a standards at the core, supplemented and pesticide residues. In light of tencies remain, and some legislature number of relevant studies by the by industrial standards, local stan- Chinese pear and peach exports to is still lacking. end of 2015. By way of support, the dards and enterprise standards. Finland grinding to a halt for food “Many food safety standards government will invest in a larger In recent years, government safety concerns, this appears par- were issued a long time ago and workforce and training for its agencies have clarified what is ticularly relevant. lack generality; some standard employees, as well as establishing a required of a food standard; to It was noted that due to the large indices lack risk assessment. As a suitable framework to facilitate ensure that these are upheld, the number of complex regulations and result, they could not [keep up with] implementation. Italian tomato price talks making slow progress BY EMMA SLAWINSKI meetings currently being held a “Obviously this is legitimate increases in cost that they face, par- base price for raw tomatoes has not but it’s also very serious,” said ticularly for fuel. NEGOTIATIONS are yet been discussed, as the negotia- Crotti, adding that the producers’ Crotti pointed out that lowering ongoing in northern Italy tions are focusing on setting quality side, despite being fragmented, his- the raw material price would send over the processing tomato parameters that will determine the torically, had managed to maintain out the wrong signals to the market, raw material price for the final amount paid to each grower unity. and that for Italy, which is not com- 2012 season. for what they deliver. These take However, there seems to be a petitive in industrial products such This year, the talks have been into account factors including the will to make the situation work as tomato paste, the focus should complicated by the fact that the brix of the fruit and the proportion despite the obstacles, whether a be on preserving value throughout processors’ side has fractured into of green, damaged or otherwise unanimous agreement or separate the chain. two groups. Separate meetings are defective fruit, among other factors. ones are reached in the end. The “We need to protect value in being held between these and the Having two separate sets of sector has set itself a deadline of 15 value-added products: passata, producers’ representation. negotiations is seen as an added March by which to establish a raw pulp, our typical products that Paolo Gazza, director of challenge by Gazza, and also by material base price and quality make us unique. We can’t compete AINPO, a producers’ organisation Marco Crotti, president of Con- parameters. with Californian or Chinese prod- that represents growers from the sorzio Interregionale Ortofrutticoli, Asked what base price each side ucts,” he said. Parma, Piacenza and Reggio Emilia which brings together AINPO, two would be pressing for, Gazza said Further meetings were planned provinces, told FOODNEWS: processing companies and tomato that the growers’ side would ask for for Thursday 1 March. FOOD- “We’re in an awful impasse.” products marketer, Boschi Food & an increase in the raw material NEWS will bring you updates as He explained that at the Beverage. price of 5-10%, because of the they become available.

FOODNEWS is published by Informa Agra, IBI, Guardian House, 119 Farringdon Road, London EC1R 3DA, UK. Phone: +44 (0) 20 7017 7500 Fax: 0044 20 7017 6985 Email: [email protected] www.agra-net.com Managing Editor: Neil Murray Business Intelligence Editor: Alex Masters Specialist Reporters: Jennifer Willis-Jones, Emma Slawinski, Amy Booth Contributors this issue: Vladimir Pekic, Eugenie Bryan, Colin Graham, Julian Gale Market Prices: Matthew Pendered Managing Director: Philip Smith Production Editor: Steve Aylett Advertising Manager: Sunny Patel Tel: +44 (0) 20 7017 4153 Fax +44 (0) 20 7017 7594 Email: [email protected] General Enquiries: Email: [email protected] Tel: +44 (0)20 7017 5540 or (US) Toll Free: +1 800 997 3892 Online Access: Email: [email protected] Tel: +44 (0)20 7017 4161 © FOODNEWS 2012. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without the written permission of the publisher. ISSN 0951-130X. Registered Trade Mark: FOODNEWS®. Informa Plc. Advertising in FOODNEWS® and its supplements is accepted on condition that the advertiser will indemnify the company from any claims or actions arising from the appearance of an advertisement.