Issue #1 January 31, 2013 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Message from Chip Smith, President:
Although a brief one, this coming month will be quite busy. Many of you will be attending the International Sweetener Colloquium in Bonita Springs, Fl. Later in the month there is the 2013 USDA Ag Outlook Conference in Arlington, VA. Both of these events should prove to be enlightening in regards to most of the ingredients that we market.
Please enjoy the articles attached. As always we do our best to bring you a broad view of our industry through the reporting of a variety of news outlets.
Have a great February.
Best Regards, Chip Smith, President
Also in this issue: (Click on the Headline, or scroll down to the document) 00/00 - Washington Update - Legislative Uncertainty 12/31 - March Cane Crush (Brazil) May See Surplus 01/02 - Coffee in Colombia: Waking Up to an Opportunity 01/07 - (India) Rice exports to fall, wheat exports may double in 2013 01/08 - High beef prices will impact menus in 2013 01/08 - China imports of corn, soybeans to remain high, paper says 01/08 - International Sweetener Colloquium, 10–13 February 2013 01/10 - A Sweet New Year 01/14 - US drought still brings farmers misery 01/15 - Domino Foods, Inc. Named National Strategic Partner of American Diabetes Association 01/15 - Climate change could open new areas to (Austrailian) agriculture 01/16 - USDA turns (sugar) beets into disposable, biodegradable plastic food packaging 01/17 - January issue of the SUGAR AND SWEETENERS OUTLOOK 01/17 - Excess sugar pulls futures down to 29-month lows 01/17 - Congressmen contact energy drink makers directly 01/17 - China's grain imports from January-November 2012 soared 294.5% 01/18 - U.S. soybean export sales hit marketing year high 01/21 - Q4 North American Cocoa Grind Succeeds Estimates 01/21 - 'ASR Group' Name Unites Leading Sugar Brands Under One Identity 01/22 - Early Focus on the Prospective Size of the 2013 U.S. Corn Crop 01/23 - Soybeans, Corn to be impacted by dry weather in Argentina Brazil 01/24 - Sugar Rush Leaves U.S. With Biggest Glut in Decade 01/29 - Increasing demand seen for pea protein 01/31 - Iconic Imperial Sugar Company CEO Robert Hanna passes away
A Glance at the Past . . . Legislative Uncertainty Needless to say, a great deal of uncertainty has revolved around the farm bill for the past year. At a Sugar Club dinner last March, Mary Kay Thatcher said that the Congress would have a very difficult time trying to get the bill done. Ms. Thatcher, an official at the American Farm Bureau Federation, was right on target. Although the Senate passed a bill last June and the House Agriculture Committee reported one in July, the bill never made its way to the House floor, primarily because of pressure to reduce spending for nutrition programs. At the last minute, the existing bill was extended through this coming September 30. The general feeling at the moment is that the bill will not be re-considered until April at the earliest. There are more pressing issues on the Congressional agenda. Although the delay is frustrating farm groups, there’s nothing unusual about it. The 2002 bill had to be extended four times before it was finally adopted. Nonetheless, the delay has triggered some concern among farm groups, including those in the sugar sector. Those concerns pale, however, in comparison to those that prevailed way back in 1974 when the old Sugar Act failed to be extended. th On June 5 of that year, the sugar lobby sat in the gallery of the House of Representatives in a state of total shock and disbelief. We had just witnessed the Sugar Act, which had been in force since 1934, go up in flames. There were no warning signs. Two amendments to the bill, which the Rules Committee cleared for consideration, had passed with little opposition. (Oddly enough, the bill normally went to the House floor under what is called a “close rule.” No amendments could be offered on the House floor, a procedure normally reserved for appropriations bills.) The extension of the Act was defeated on the House floor by a vote of 175 to 209. As a result, the Act, which included domestic and foreign quotas, allotments, acreage restrictions, payments, minimum wages for farm labor, marketing allotments and import quotas, expired at the end of the year. On June 30, 1975, the Federal excise tax on sugar of one-half cent per pound also expired. That tax was used to finance the so-called “conditional payments” that were made to producers for complying with acreage restrictions. Those payments were unique in that they were graduated. The more sugar you produced the smaller the payment per ton of sugar produced. Prospects for renewing the bill at that time had been hampered by exceptionally high sugar prices (the price of raw sugar had doubled from around 13 cents a pound in January of that year to over 26 cents by the time the bill was considered by the House. By November it had gone up to around 60 cents a pound.) There also was a great deal of unfavorable publicity surrounding lobbying activities for foreign nations. Talk of trying to extend the sugar program for one year or include its provisions in a pending trade bill never materialized. The Ford Administration did, however, take control of the situation. In order to protect the sugar industry from a flood of imported sugar, President Ford signed a proclamation on November 16, 1974 that imposed an annual global import quota of 7,000,000 short tons, raw value. By so doing, the import duty remained at .625 cent a pound. In the absence of a quota the duty would have tripled. Despite producer concerns, over the next five years sugar imports never came anywhere near seven million tons. And there was no drastic decline in domestic production. (The industry wasn’t really impacted until HFCS arrived on the scene.) Two attempts by the producers to resurrect the sugar act failed, one in 1978 and the other in 1979. As time went on, the Administration provided relief for the industry through import duties and fees and finally re-imposed country-by country import quotas. And sugar provisions were included in the 1977 farm bill and all subsequent farm bills. Today, should Congress fail to extend the farm bill, which is highly unlikely, USDA certainly has the flexibility to provide for the farm sector through other statutes. So, those that are anxious about the farm bill should “keep calm and carry on.”
http://www.candyandsnacktoday.com/archives/2012/12/march-cane-crush-may-see-surplus.shtml
December 31, 2012; March Cane Crush May See Surplus Cleveland —The 2012/2013 sugarcane crush in Brazil’s South-Central region is expected to total 2.6 percent more than September estimates, according to the Brazilian Sugarcane Industry Association, Unica. Unica anticipates 532 million tons in March 2013 instead of its original forecast of 518.5 million tons. Dry November weather in the region, where 90 percent of the country's sugarcane is produced, allowed the harvest to advance quickly, explains Technical Director Antonio de Padua Rodrigues. Growth in cane production is predicted to result in high volumes of ethanol and sugar. Sugar is projected at 34.05 million tons, a 4.13 percent increase from Unica's September numbers, and ethanol is expected to reach 21.33 billion tons — 6.63 percent higher than the previous estimate. Rabobank Food and Agribusiness Research also expects a global sugar surplus in 2012/2013 and says the market is feeling the effects, bringing New York Sugar No. 11 futures down to 19 to 22 cents per pound throughout the past four months. According to Rabobank, sugar prices slipped below their anhydrous ethanol equivalent price on December 10, breaching the ethanol floor. Anhydrous ethanol exports are up 300 percent from the previous year’s shipments, resulting in a 73 percent increase in total ethanol exports from South- Central Brazil. “Meanwhile there continues to be discussion of an increase in Brazilian gasoline prices,” says Andy Duff, Rabobank analyst. “The effective increase in the ceiling price for hydrous ethanol that would result from an official gasoline price hike would be supportive for sugar.”
http://knowledge.wharton.upenn.edu/article.cfm?articleid=3151
January 02, 2013 in Knowledge@Wharton Coffee in Colombia: Waking Up to an Opportunity
Every day, more than 500,000 coffee growers throughout Colombia fulfill a family tradition, one that has been passed down from generation to generation. Growing premium-quality coffee beans across nearly 2.2 million acres of Colombian highlands is an important part of their heritage. For Colombians, coffee is not merely a bean, but a part of their national identity. In fact, coffee growing is the largest source of rural employment in the country. The centrality of coffee to Colombian society and to its international image is exemplified by the nation's president, Juan Manuel Santos, who spent much of his career representing the Colombian Coffee Growers Federation (FNC) at the International Coffee Organization. Colombians pride themselves on their reputation for high-quality coffee beans, which result from rich volcanic soil and predominantly shade-grown cultivation. In addition, the alternation of wet and dry seasons supports two harvests, one running from September to December and the other running from April to June. Coffee is grown in the highlands of the Sierra Nevada of Santa Marta as well as on the slopes of the three sections of the Andes mountains that traverse the country. It can be planted at altitudes of up to 6,400 feet, where the climate creates superior beans by favoring increased acidity. Because the terrain precludes the possibility of significant mechanization, Colombian coffee is harvested by hand at its optimal ripeness and cleaned to prevent mucilage from permeating the beans. This process differs from that of other major coffee-growing countries, such as Brazil, where coffee is produced on a massive scale at altitudes below 3,200 feet and is often not cleaned immediately. In addition, Brazilian coffee is harvested mechanically, yielding what many believe to be a lower-quality product. Harvesting coffee by hand in Colombia results in not only a higher-quality product, but also the broader involvement of coffee growers in the industry, which, by necessity, employs a large number of small-scale farmers. Some 95% of Colombian coffee-growing families operate on small plots of land, averaging five acres each. This characteristic distinguishes Colombian coffee production as essentially a family-run operation, in which all of the harvesting and post-harvest processing is carried out by the growers themselves. In 2010, Colombia produced 8.9 million 60-kilo bags of green coffee, which represents the first stage of coffee production. This crop was valued at US$2.3 billion. In economic terms, this means that coffee production represents 16% of the national agricultural GDP. Green coffee beans are then shipped throughout the world to different companies that roast, package and distribute the finished product under a variety of brand names. According to the FNC, in the past five years, at least 37% of Colombian coffee exports were shipped to the U.S., while Germany received more than 10%. The FNC: A Unique Model The FNC is the largest rural non-profit organization in the world and was created in 1927 to represent and defend the coffee growers' interests. Its members, elected by the growers, communicate with their constituents and meet annually to carry out important duties, including budget creation. They also design and implement the various social programs requested by coffee-producing families. According to Alejandra Londoño, vice president of international business at Juan Valdez, one of the FNC's current priorities is developing strategies for adapting to global climate change. This phenomenon has resulted in more intense periods of rain, which have a significant impact on coffee production. Distributing profits in a manner that promotes a minimum standard of living for growers is difficult because most of Colombian coffee's added value is achieved at the retail level. To address this challenge, the FNC established a National Coffee Fund in the early 1940s. This fund supports the Purchase Guarantee Policy, which offers farmers a transparent minimum price for their product based on a formula that accounts for the current international market price and the exchange rate, among other factors. However, coffee growers may achieve higher prices for products with special characteristics, such as organic coffee. The growers have the option, but not the obligation, to sell as much of their output as they choose at the established minimum price, and may do so at any time at one of more than 500 locations around the country. Thus, each grower is able to obtain, on average, approximately 95% of the value of the coffee he produces. According to Marcela Jaramillo Asmar, marketing and advertising coordinator for the FNC, "what this structure guarantees ... is that the coffee grower will always have the best option - - either he receives the price assured by the FNC or he receives more. In many [countries], the producer receives much less because he is subject to the market." Through the FNC, growers are aware of the price at the time of planting, enabling them to more effectively plan their production and better manage their cash flow. The FNC exports approximately 30% of Colombian coffee, making it the largest exporter of coffee in the nation. The National Coffee Fund is financed through a contribution of US$0.06 per pound of green exported coffee. Jaramillo Asmar noted that "the work of the FNC, among many other tasks, is to administer these resources to assure the well-being of the coffee growers." Through the fund, the FNC provides technical assistance to coffee producers, scientific research, quality-control programs, living-condition improvements and international advertising for Colombian coffee. The fund invested a total of US$365 million in these endeavors in 2011 alone. Responding to a Changing Coffee Market In an ongoing effort to significantly increase value for Colombian coffee growers, the FNC works to distinguish the Colombian product based on its superior quality. According to Jaramillo Asmar, it became necessary to develop marketing strategies to ensure that consumers would "recognize and specifically seek out Colombian coffee." To this end, the FNC began an international marketing campaign in 1959, creating the legendary Juan Valdez character. In addition, the familiar triangular logo representing Colombian coffee was introduced in 1982 and used in marketing efforts to signify coffee of 100% Colombian origin. As a result of both endeavors, consumers began to select coffee based on its geographic origin rather than simply by brand. According to Londoño, the Starbucks phenomenon of the 1990s led to rapid and significant changes in the retail coffee market. Previously, most consumers purchased coffee in grocery stores, where the process of differentiating Colombian coffee was relatively straightforward. However, with the emergence of Starbucks, coffee originating in countries around the world, including Costa Rica, Nicaragua, Honduras and Ethiopia, became well known to consumers. Jaramillo Asmar added that "the consumer began to see many more options, not only in terms of origin, but also in the coffee experience." As premium beverages, including cappuccinos and espressos, became more popular, consumers began to value coffee differently. Colombia's existing brand positioning became a liability because it was closely associated with Folgers, Maxwell House and other mainstream brands found in supermarkets -- brands Jaramillo Asmar referred to as the "safe choice." To access the higher-value premium segment, the FNC in 2002 created the company Procafecol, which operates Juan Valdez retail outlets, paying approximately 5% of its sales in royalties to the FNC. Procafecol sought to position itself at the high end of the value chain by marketing Colombian coffee and selling it through Juan Valdez-branded retail stores. Jaramillo Asmar explained that, unlike coffee sold through other outlets, the FNC controls the entire chain of production for coffee sold at its stores, thereby ensuring that the highest-quality standards are maintained "from farm to cup." Procafecol's stores are intended to be viewed as personally endorsed by the Juan Valdez character. The FNC owns 83% of Procafecol, small independent coffee growers own 4% and the International Finance Corporation (IFC) owns the remainder. The fact that 18,000 coffee growers currently own shares in Procafecol reflects their confidence in it and the ownership they feel toward the company. Colombia also continues to sell coffee in other segments of the value chain because the large volume of its production requires that it extend beyond the premium segment to access a sufficiently large market for its output. As a result, and despite recent changes in the coffee industry, Colombia is still the nation that consumers associate most closely with coffee production. Currently, both in Colombia and internationally, Juan Valdez is prominently positioned in the highly competitive market of retail coffee sales. In Colombia, Oma and Dunkin Donuts are its principal competitors, although more niche brands are beginning to emerge. Juan Valdez focuses on competing not only by delivering a high-quality product, but also by investing in extensive training for sales associates. These associates must be able to represent the brand effectively to consumers, explaining the value proposition of a company that enables small growers to reap the rewards of access to the retail coffee market. Juan Valdez envisions its customers as modern and socially conscious individuals who are willing to purchase high-quality products from companies whose brands align with their personal values. By leveraging the popularity of the internationally recognized Juan Valdez character, the coffee shops managed by Procafecol have expanded into eight countries. A number of new products and innovation models are tested under the Juan Valdez brand, while the connection to the product's origin and its high quality are consistently emphasized to consumers. The overall objective of each marketing campaign is to remind consumers that behind the coffee they buy, there are more than half a million producers operating small family businesses. Procafecol expects to break even by the end of fiscal year 2012, at which point dividend distribution will be considered. Using Coffee to Build a Better Tomorrow Colombia's system of coffee production and sales is oriented not only toward profit generation, but also toward the creation of a positive social impact. Through research and training, community and personal development, and environmental protection, the FNC creates a healthy, continuous cycle of sustainability among all involved. The strategy for improving the quality of Colombian coffee is driven by the idea that if families are able to obtain higher prices for their coffee, they will also improve their quality of life. To achieve this goal, the FNC in 1938 founded Cenicafé, its coffee research center for the development and innovation of competitive and sustainable technologies. With 66 researchers, Cenicafé focuses on projects ranging from quality optimization to environmental protection practices to agricultural disease control. However, the research findings would not be as valuable without a system that shares the knowledge gained at Cenicafé and offers a training method that reaches small business owners in the remote coffee regions of Colombia. To meet this challenge, the FNC founded the Extension Service, its communication and training arm. Comprising over 1,500 technicians, this agency communicates with the more than 500,000 Colombian coffee producers on a regular basis. Contact is facilitated through a plethora of methods, including face-to-face individual or group meetings, mass media and the Internet. The FNC offers a wide range of programs that support its goal of improving the well-being and social development of coffee producers. These programs vary in focus from education to health care to infrastructure. Over the past five years, the FNC has invested more than US$38 million in education for Colombian coffee growers. For example, the School and Coffee program was launched in 1996 to incorporate coffee-related topics into the curriculum of primary and secondary schools, with the aim of educating the next generation of coffee growers. The FNC also invests in education through training programs that focus on coffee-production analysis and business-administration topics aimed at increasing profit margins. To combat the lack of health care available to these small coffee-growing families, the FNC teamed up with other entities to create the Social Security Through Health Care program, under which families receive health care through a government-subsidized system. Since 2004, this program has aided over 110,000 individuals. In addition, infrastructure is an important challenge in Colombia due to the country's mountainous terrain and its historic lack of investment. Improvements in infrastructure help connect rural families to the societal network and also facilitate the transport of harvested coffee. The FNC continues to promote projects in diverse sectors, including electricity, roads and housing. Finally, environmental protection and sustainability are vital to the success of the coffee-growing industry. As a result, much of the work of the FNC, Cenicafé and the Extension Service is dedicated to understanding the relationship between coffee growing and the environment and finding techniques to minimize the environmental impact at each stage of coffee production. This includes active participation in the conservation of water, soil and forests, in addition to biodiversity projects and waste-management practices. Future Challenges and Opportunities As the international coffee market evolves, the FNC will play an ever-increasing role in securing a positive future for Colombian coffee growers and their families. Because of the emergence of the premium-coffee culture, as well as developing consumer tastes, coffee has become a highly competitive industry, one with increased potential rewards and added value. In order for Colombian coffee to remain prized by consumers, thereby improving the quality of life for its more than 500,000 growers, the FNC must continue to reinvent and strengthen the Juan Valdez brand. This article was written by Rafaela Andrade, Dawn Overby, Jessica Rice and Samantha Weisz, members of the Lauder Class of 2014.
http://www.world-grain.com/news/news%20home/[email protected]
January 7, 2013; tradeindia.com
Rice exports to fall, wheat exports may double in 2013
India, Jan. 7 -- Rice exports from the country are likely to slide by 30% to 7 million tonnes while wheat exports may double to 7-8 million tonnes in 2013, according to government advisory body Agriculture Costs and Prices (CACP). "I feel India should not be exporting more than 7 million tonnes this year," CACP Chairman Ashok Gulati is quoted by a news agency report. The world rice market is 35 million tonnes. India's rice exports could slowdown because of shrinking export profit margin and aggressive exports by countries like Thailand and Vietnam, he said. "Our margins would take a hit with rise in the minimum support price of paddy and if global prices weaken due to aggressive exports from Thailand and Vietnam," Gulati added. Shipments from Thailand are expected to rise as the country has surplus stock of 12 million tonnes of the grain. However, on wheat exports Gulati said India is expected to double exports to 7-8 million tonnes in 2013, as against an estimated 4 million tonnes last year. "Wheat exports were 2.9 million tonnes during January- September of 2012. Expecting another 1 million tonnes export to undertake during fag end of last year, taking total wheat export to 4 million tonnes," he said.
http://www.bakingbusiness.com/articles/news_home/Trends/2013/01/High_beef_prices_will_impact_m.aspx?ID={198577 53-127E-4277-A7AD-C4312AE95AE8}[email protected]&cck=1
1/8/2013; by Staff, BakingBusiness.com
High beef prices will impact menus in 2013 CHICAGO — Making efforts to get around high beef prices will be one of the major trends impacting the restaurant industry during the next year, according to Mintel. Significant increases in beef prices and low consumer confidence have led the food service industry to look for ways around such high costs, including offering smaller steaks and premium chicken positioning, Mintel said. There was a 52% increase in chicken breast being used as a menu item from the third quarter of 2009 to the third quarter of 2012 and a 22% increase in vegetarian menu items during the last several years. Other food service predictions for the year include more innovation in beverages. Beverages always have helped boost profit for restaurants, but consumers are expanding their tastes beyond traditional beverages and are looking for gourmet cocktails, craft beers and super-nutritional juices and smoothies, Mintel noted. Cocktail menu items are up 55% in recent years, shake menu items are up 15% and 71% of consumers like to customize coffee. In addition, consumers are concerned about food quality, processing and safety after recent food safety scares, and operators need to be transparent about ingredient sourcing. Mintel said choosing the right menu language such as “cage-free eggs” or “made-on-premises” is as important as choosing the right ingredients. Twenty-three per cent of diners see no additives/preservatives as important to healthful dining and 11% of consumers believe nitrate-free and hormone-free items are important. Also, food trucks, self-service coffee kiosks and better vending machines mean more high-quality food is available in more places whenever consumers desire. This means restaurants need to adjust business models to find ways to keep up with the new ways consumers find foods and beverages. Convenience stores are stiff competition with prepared food sales up 11%, and 41% of consumers making casual dining choices based on curbside pick-up options.
http://www.world-grain.com/news/news%20home/[email protected]
January 8, 2013; Hong Kong Economic Journal Co., Ltd
China imports of corn, soybeans to remain high, paper says
China will continue to increase its imports of corn and soybeans to satisfy rising domestic demand in the next few decades, China Daily reported Monday, citing senior officials and academics. The country recorded grains output of more than 589 million metric tons in 2012, marking the ninth consecutive year of increased grain harvests, the report said, quoting the Ministry of Agriculture. "But meanwhile, some agricultural products have had supply problems, which were mainly triggered by rapid growth in domestic consumption," Chen Xiwen, director of the Office of the Communist Party of China Central Committee's Leading Group on Rural Work, was quoted as saying at a forum on rural issues that ended Jan. 6. The import volume of soybeans is expected to reach 60 million metric tons in 2012, the report added.
International Sweetener Colloquium, 10–13 February 2013
Co-hosted by the Sweetener Users Association and the International Dairy Foods Association, the International Sweetener Colloquium has long been considered the industry’s premier meeting. This annual event provides a unique opportunity for key players from all sectors to discuss the most pressing issues facing the global sweetener industry. The 2013 International Sweetener Colloquium will be held at the beautiful Hyatt Regency Coconut Point Resort & Spa located in Bonita Springs, Florida.
The International Sweetener Colloquium is the only event in North America that brings together sweetener suppliers and buyers from the major food and other sweetener consuming industries. The Colloquium has experienced significant growth over recent years and is known throughout the industry for its quality programing and extensive opportunities for networking. Program Highlights The Trans-Pacific Partnership – Opportunities for Sugar Trade Liberalization Billed as “an ambitious, next-generation, 21st century trade agreement,” the Trans-Pacific Partnership (TPP) agreement is the most significant multilateral trade initiative since NAFTA and will likely serve as a template for future trade agreements. The current negotiations include several important players in global sweetener markets, including Australia, Canada, Mexico, and the United States. Our panelists will discuss the status of the negotiations and the potential impacts of this agreement on markets and future trade policy. Moderator: Rick Pasco, President, Sweetener Users Association: Panelists: Sandra Marsden, President, Canadian Sugar Institute: Warren Males, Head of Economics, Australian Canegrowers: Dr. Oscar Cruz Barney, International Trade Advisor, Mexican Sugar & Alcohol Association World and U.S. Sugar Outlook Early indications for the 2012/13 world sugar balance are for some stock rebuilding but we’ve seen how quickly things can change. Too little rain here, too much there, throw in a hurricane or two, and pretty soon you’re talking high world sugar prices. And it’s a similar story for the U.S.- Mexican sweetener situation, which will depend not only on how crops turn out, but on whether high corn prices affect HFCS use and Mexico’s sugar exports. Get the latest views of our well- regarded experts at this session on the sugar market outlook. Moderator: Tom Earley, Vice President, Agralytica: Panelists: Mike Gorrell, Head of Imperial Sugar Co., Louis Dreyfus Commodities; Paul Meyers, Vice President, Commodity Analysis, Foresight Commodity Services The Sugar Program in the Real World This panel will explore sugar policy’s impact on business operations under current law, as well as under a new farm bill – and how policies can best be administered. Are there better and worse ways to operate the program? How should buyers and traders interpret USDA numbers and their policy impact? How does the program affect markets? Moderator: Pat Henneberry, Executive Vice President of Commodity Operations, Imperial Sugar Co. Panelists: Barbara Fecso, Agricultural Economist, Farm Services Agency, U.S. Department of Agriculture, Jack Roney, Director of Economics and Policy Analysis, American Sugar Alliance Randy Green, Principal, Watson Green LLC: For further info, please visit the IDFA website.
{~P86425628373639908415226363810~} http://www.beverageworld.com/articles/full/15440/a-sweet-new-year
January 10, 2013; By Heather Landi, BEVERAGE WORLD A Sweet New Year Beverage World recently conducted Q&A sessions with several sweetener experts across the industry to gain some insight on the big sweetener trends to look out for in 2013. Here's what we found out. Beverage makers increasingly are turning to sweetener blends, such as sucralose and acesulfame potassium (Ace-K) and stevia and sugar, to achieve the right sweetness profile in their drinks. Do you think the trend of sweetener blends will continue?
Mary Lynne Shafer, senior manager, business development, Beverage with Ingredion Incoporated: Absolutely, sweetener blends will increasingly be formulated into beverages to provide the ideal sweetness profile. This is particularly important when replacing sucrose as consumers will expect reduced calorie versions or reformulated beverages to meet their sweetness, flavor, taste and texture expectations.
Brendan Naulty, president, Ajinomoto Food Ingredients, makers of aspartame: The beverage industry has signed on to front pack labeling, so calories are front and center to the consumer. So if you can replace some of the sugar with another sweetener and get the calories down from 180 to 100 or even under a 100, that’s a better perception for the consumer. And from the business point of view, sweetener engineering and sweetener economics has become higher and higher on companies’ radars in order to manage costs.
What kind of sweetener blends are beverage makers often using and which do you anticipate seeing more of in 2013?
Jeremy Thompson, global director, product management for Natural Sweeteners, Tate & Lyle: There’s a wide variety and it comes down to the variety of formulating goals, taste quality and what label impact they are looking to have. There’s widespread use of things like sucralose and ace-k, as manufacturers optimize the synergistic effects. With sucralose, it can be used in combination with sugar at a lower cost since you’re using less sugar. Stevia is making its way into more products and data on stevia from a Mintel study finds that stevia is formulated with sugar 60 percent of the time and 35 percent of the time with high-intensity sweeteners. Customers often taste bitterness with reb A sweeteners and we think this blending is being done in particular because of that bitterness impact.
Shafer: Ingredion’s sweetness portfolio has a diverse offering including naturally sourced, zero calorie Enliten Reb A stevia sweetener and a natural, low calorie bulking sweetener, Erysta erythritol. For more traditional sweeteners we have a nutritive portfolio including high fructose and glucose syrups.
James Kemplen, VP of marketing, Sweet Green Fields, maker of natural rebiana (Reb-A) sweeteners: With the increase of obesity and diabetes, I think we’ll begin to see companies really embracing this blending concept. Both domestically and in Europe, if you look at the most successful products that have been utilizing stevia, you’re beginning to see that a balance between fructose and sucrose and stevia extracts actually provides an excellent tasting product. In some ways, it’s the best of both worlds as you’re still utilizing the positive qualities of sucrose, with it’s mouthfeel and texture, coupled with the low-calorie aspect of stevia extracts. Trop 50 is one example of marrying sucrose and stevia in order to get the benefits of both, primarily for the consumer.
Steve Keim, senior director, flavor division, Prinova USA. Prinova offers a wide variety of natural, artificial and nutritive sweeteners including stevia, sucralose, monk fruit, neotame and sugar alcohols: More and more beverages are able to be naturally sweetened with reduced calories. Stevia will continue to grow into a wider market and flavor companies will continue to develop technologies that will enhance its capabilities.
With the trend toward all-natural beverages, do you think natural sweeteners such as stevia and monk fruit extract will grow in prominence?
Thompson: We certainly are expecting to see greater use of monk fruit extract. Eighteen months ago, we launched a new line of sweeteners under the PureFruit monk fruit extract brand, and we expect to see more and more of that in 2013. It’s made from fruit and data suggests that this is appealing to consumers and intuititve that a good-tasting, healthy sweetness comes out of a fruit. On the taste front, it doesn’t have the bitter aftertaste with stevia or Reb A sweeteners. In terms of stability, it’s a very stable product, and, all in all, based on the amount of activity we’ve seen in the past 18 months, we expect to see more monk fruit extract in the next year. Steve Wolf, director of flavor applications at Robertet Flavors About two years ago, we at Robertet Flavors USA started to get involved and see what we could do on the flavor side to help modulate sweetness when working with some of these natural sweeteners like stevia and monk fruit. Our flavors group has been working with our sensory testing group to come up with flavors that we are calling enhancers. With these enhancers, we are putting together a toolbox to help people in their efforts in improving the perception of sweetness in their finished products. We’ve found that there is not one magic bullet, either a blend of sweeteners or sweetness modulators. There’s not one system that works across the board, as some sweetener and sweetness modulator blends work better with citrus flavors, and some seem to work better with berry flavors.
Brandon Olson, director of research and development, Prinova USA: We will see more stevia products focused to include less Reb A and more of the other glycosides found naturally in the plant. An example is Prinova’s OvaSweet 120 which has a more rounded balance in its sweetness profile. We’ve seen the biggest complaint with Reb A is a lingering metallic or licorice note, and this OvaSweet has virtually no aftertaste.
Anything else to expect in the sweetener market in 2013?
Kemplen: At Sweet Green Fields, we have been working very hard on the organic side of the business. We have taken well over a year to really work on the processing of organic stevia extracts to meet the really stringent guidelines of the National Organic Program, as well as European Union. It’s been a rather trailblazing process, in order to make certain that we have authenticated all those processes to meet those standards, and we plan to launch an organic stevia extract in mid January.
Ihab Bishay, senior director, business development and application innovation at Ajinomoto: Advantame is a new ingredient that we’ve been working on here at Ajinomoto. It’s a derivative of aspartame combined with vanillin. As a sweetener, it’s a very economical sweetener and it has a very sweet taste. It’s very useful for blending with other sweeteners, in terms of reducing cost and calories, and it has a good taste profile. Advantame has general use approval as a sweetener in Australia and New Zealand and here in the U.S. it has general flavor approval as it has FEMA GRAS status. We are pursuing sweetener approval in the U.S., the European Union and Japan and anticipate approval in the U.S. this year.
http://www.world-grain.com/news/news%20home/[email protected]
January 14, 2013; Reuters
US drought still brings farmers misery Oklahoma rancher Kent Donica has given up. The drought that has ravaged pastures on his ranch and throughout the region has won. Since last September, Donica has sold nearly all of his 800 cattle because there is no pasture to feed them and he now works as a ranch hand nearby to make ends meet until it rains again. Last autumn he had hoped his winter wheat crop would feed his cattle and keep his ranching business going. The wheat also would reduce the need to buy high-priced feed like corn, which would wipe out earnings from the cattle he fattens and sells.
But the worst dry spell in half a century stopped the wheat crop from sprouting properly, depriving Donica's herd of the green shoots that would have sustained it through winter. Donica is not alone. Across the southern Plains, the worst ever starts to the winter wheat crop have put in jeopardy ranches that depend on wheat pasture for cheap feed, raising the prospect of higher beef prices this summer. U.S. farmers, squeezed by high prices for corn and other fodder on one hand, and drought that has parched pastureland on the other, are cutting back their herds in a bid to survive.
The U.S. cattle herd has shrunk to 91 million animals, the smallest in 60 years. More pain seems to be on the horizon for ranchers after the USDA on Friday reduced its estimates for corn stocks, sending Chicago Board of Trade corn futures sharply higher. Meaning anyone feeding corn to cattle, hogs, chickens and other animals, will pay more for it.
"The drought has absolutely put me in a survival mode and I finally decided there was no way to fight this," said Donica, who now tends a nearby rancher's cattle to pay expenses. "If we don't get some rain pretty quick, it will be the end of the world in Oklahoma as far as the cattle business is concerned," said Donica, 47, whose ranch is near Ardmore, Okla.
Kansas, Oklahoma, and Texas, which have all been hurt by drought, are important pieces in U.S. cattle production accounting about 25 percent of the nation's herd, including dairy. The share is even larger for beef cattle, with the three states currently fattening 46 percent of the supply. Already the shrinking herd is driving up cattle and beef prices, which could further accelerate the decline of beef consumption in the United States, which has fallen more than 16 percent per capita in the last decade.
Farm lender Rabobank forecasts U.S. cattle prices will soar to a record high dollar 140 to dollar 145 per cwt this spring as numbers decline. The shrinking herd will reduce beef production, with USDA forecasting a 4.3 percent drop this year from 2012. The smaller U.S. cattle herd and the resulting drop in beef production has lifted retail beef prices to an all-time of dollar 5.15 per lb in November, surpassing the previous peak of dollar 5.09 in January 2012.
Winter wheat is a key link in the economic chain of the U.S. cattle industry. Animals that graze on the tender shoots in the fall and early winter before snow covers the ground tend to put on more muscle than they would eating grain like corn, which boosts their value at auction. Only a third of the U.S. winter wheat crop at the end of November was rated "good to excellent" by the U.S. Department of Agriculture and the crop has deteriorated since then.
"We essentially have no wheat pasture. There are very few cattle on wheat in Oklahoma at this time and many of them will probably not make it through the winter," said Darrell Peel, Oklahoma State University extension livestock marketing specialist. Peel expected ranchers to continue selling off their herds to avoid buying high-priced feed.
The sting of the poor state of the winter wheat crop in the southern Plains is being felt as far away as Tennessee and Ohio where farmers, who specialize in rearing calves then selling them off to ranchers like Donica, are struggling to find buyers. This year, stocker cattle in the Ohio Valley are going to go to auction barns or feedyards a lot sooner, said Sam Roberts of United Producers Inc, a farmer-owned and operated livestock marketing cooperative based in Columbus, Ohio. "Many of those cattle will wind up being moved to feedyards in the Midwest at a lighter weight than they would normally," said Roberts, an assistant vice president of corporate marketing at United Producers Inc.
http://www.prnewswire.com/news-releases/domino-foods-inc-named-national-strategic-partner-of-american-diabetes- association-187010731.html
Jan. 15, 2013: PRNewswire
Domino Foods, Inc. Named National Strategic Partner of American Diabetes Assn. ISELIN, N.J., Jan. 15, 2013 /PRNewswire/ -- Domino Foods, Inc., maker of Domino® Light and C&H® Light All Natural Sugar and Stevia blends, is pleased to announce that it is now a National Strategic Partner of the American Diabetes Association. "Our Domino® and C&H® Light products are an all-natural blend of sugar, stevia and natural flavor, with no artificial ingredients. With our Light product, you get the authentic sweet taste of sugar, but with only half the calories and carbohydrates per serving. It really is the perfect blend of both worlds," said Brian O'Malley, President and CEO of Domino Foods. "We are very excited about supporting the American Diabetes Association's mission to Stop Diabetes® and helping to create more awareness about the importance of living a healthy lifestyle for those affected by diabetes." According to the American Diabetes Association, experts agree that people with diabetes can substitute small amounts of sugar on special occasions for other foods containing carbohydrates in their meal plans while still keeping blood glucose levels on track. Domino® Light and C&H® Light are an ideal option for lighter sweetening. With only 2 grams of carbohydrates per serving — half the grams and calories of regular sugar — Domino® Light and C&H® Light are suitable sweeteners for people with diabetes when used in consultation with their health professionals. Domino® Light and C&H® Light can be stirred in hot or cold beverages, such as coffee and iced tea, or can be sprinkled over fruits and breakfast foods. Another great advantage is it can be used in baking everything from cookies to cakes or pies – all with half the calories and carbohydrates of regular sugar. Both Domino® Light and C&H® Light come in two package sizes: 40-count packets for convenient portion-control servings and a 2-pound resealable pouch for baking, sprinkling or stirring. To convert favorite recipes when baking, just replace each cup of sugar in the recipe with 1/2 cup of the Light blend to save over 350 calories in the recipe. About Domino Foods, Inc. The Domino Foods, Inc. family of products includes two of the leading brands of all-natural, pure cane sugar in America: Domino® Sugar and C&H® Sugar. Each of these brands has its own rich history that spans over 100 years – Domino® in the East and C&H® in the Western part of the country. Domino Foods, Inc. is proud to offer consumers in America a variety of fine quality, all-natural pure cane sugar products as well as alternative sweetening products, including Organic Blue Agave Nectars and the Domino® Light and C&H® Light sugar and stevia blend sweetener.
For consumer product information about Domino® Light and C&H® Light, including recipes and baking tips, and more, visit www.dominosugar.com/Light-Sugar-Stevia-Blend. Healthcare professionals are invited to find product information and to sign up for our newsletter at http://hcp.dominosugar.com. About the American Diabetes Association The American Diabetes Association is leading the fight to Stop Diabetes and its deadly consequences, and fighting for those affected by diabetes. The Association funds research to prevent, cure and manage diabetes, delivers services to hundreds of communities, provides objective and credible information, and gives voice to those denied their rights because of diabetes. Founded in 1940, our mission is to prevent and cure diabetes, and to improve the lives of all people affected by diabetes. For more information, please call the American Diabetes Association at 1-800-DIABETES (1-800- 342-2383) or visit www.diabetes.org. Information from both these sources is available in English and Spanish.
Contact:
Domino Foods, Inc. American Diabetes Association Brian O'Malley Lauren Gleason 732-590-1181 703-549-1500, ext. 2622
http://www.world-grain.com/news/news%20home/[email protected]
January 15, 2013; by Sarah Clarke, Australian Broadcasting Corporation
Climate change could open new areas to agriculture TONY EASTLEY: Australia's farmers are at the sharp end of trying to cope with a potentially hotter, drier continent. The forecast is for less rainfall and longer dry periods. Some crops may struggle to grow in the changing conditions. The CSIRO says this will pose a significant risk to productivity, but as temperatures warm there could also be fresh opportunities. Here's environment reporter Sarah Clarke. SARAH CLARKE: Australian farmers are no stranger to hot and dry conditions but with more days of above average temperatures and longer periods of dry weather forecast, the nation's agricultural sector is likely to feel the heat. Steve Crimp is from the CSIRO. STEVE CRIMP: Certainly across most of southern Australia the projections for the future are for warmer and drier conditions. So when we are experiencing warm and dry conditions, particularly in those areas growing those crops - canola, wheat, barley, et cetera - will be more challenging in the future. SARAH CLARKE: Central Australia is likely to experience the greatest warming. A CSIRO report warns that grazing livestock, particularly cattle, will be stressed as a result and less likely to breed. Irrigated cropping may also be challenged. In the south east where water is drawn from upstream in the Murray-Darling Basin, the CSIRO forecasts all cropping could be hit by less rainfall. Having said that, some types could expand into areas currently too wet to farm. STEVE CRIMP: There certainly are some crops that are more sensitive to climate variations. Canola would be one of those particular crops - wheat and barley would be more drought tolerant and hardier crops to produce. SARAH CLARKE: Across parts of Queensland and over the border into northern New South Wales around Moree, it's predicted crop yields could fall and the quality of cotton will be affected. But less frosts may increase the types of crops that could be grown here. And in the top end, if rainfall increases the CSIRO say a cotton industry could be an option and horticulture could expand. But heat stress, flooding, erosion and cyclones could also cause some damage. Mark Howden leads the CSIRO's climate adaptation flagship program. MARK HOWDEN: What we probably will see is a change in agriculture - so we won't necessarily do the same things in the same places - but I think we will see a strong continuation of agriculture across Australia. As I say, it may be different but it will still be there. SARAH CLARKE: But climate change is still an issue questioned by some, particularly amongst farmers. A recent survey indicates that about 20 per cent of primary producers don't accept the science. Either way, the nation's chief farming body says it's investing in adaptation as a key part of its strategy. Matt Linnegar is the CEO of the National Farmers Federation. MATT LINNEGAR: The last thing farmers are is silly, and so if we start to see those major shifts in those areas and despite all the good work and the efforts and the investment and the R and D, then of course people will respond. But I think before we get to that point, have we done all we can do to provide the environment in which farmers can adapt? If we've answered that question and we have done everything we can do, then of course, you know, farmers will make that decision themselves.
http://www.packagingdigest.com/article/522896- USDA_turns_beets_into_disposable_biodegradable_plastic_food_packaging.php
1/16/2013: by Rick Lingle, Technical Editor -- PACKAGING DIGEST
USDA turns beets into disposable, biodegradable plastic food packaging U.S. Department of Agriculture (USDA) scientists and university cooperators have developed a biodegradable plastic that could be used in disposable food containers. The thermoplastic becomes soft when heated. To make the plastic, Agricultural Research Service (ARS) scientists incorporated biodegradable sugar beet pulp, which is the leftover residue from sugar extraction, with a biodegradable polymer. The result is thermoplastic composites that retain mechanical properties similar to polystyrene and polypropylene, the compounds used to make white, spongy food packages. Processors generate tons of sugar beet pulp annually. Finding profitable uses for it is critical for the long-term economic viability of U.S. agribusiness. Now, ARS chemist LinShu Liu and plant physiologist Arland Hotchkiss, both at the ARS Eastern Regional Research Center in Wyndmoor, PA, and their colleagues have found a variety of new uses for sugar beet pulp. ARS is USDA's principal intramural scientific research agency. In collaboration with professor Jinwen Zhang of Washington State University (WSU) in Pullman, Liu and his colleagues developed the thermoplastic, which is manufactured from both sugar beet pulp and a biodegradable polymer called polylactic acid, or PLA, using a twin-screw extruder. PLA is a commercially available polymer derived from the sugars in corn, sugar beet, sugarcane, switchgrass and other plants, all of which are renewable feedstocks. The researchers showed that up to 50 percent sugar beet pulp can be incorporated with PLA to produce biodegradable thermoplastic composites that are similar to the petrochemical compounds used in making spongy disposable food packages. The new thermoplastic is cost-competitive with such commonly used petrochemical plastics, according to the scientists. A study describing the work was published in Industrial & Engineering Chemistry Research. Read more about this research in the January 2013 issue of Agricultural Research magazine.
Source: Agricultural Research Service
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http://www.sugaronline.com/home/website_contents/view/1207411
01/17/2013; SugarOnline.com Excess sugar pulls futures down to 29-month lows Raw sugar futures fell to 29-month lows Wednesday as the market continued to buckle under concerns that a global surplus of the sweetener could depress prices for the rest of the year, according to Dow Jones. The International Sugar Organization has estimated sugar supplies will outstrip demand by 6.2 million metric tonnes this year. Raw sugar for March delivery on the ICE Futures U.S. exchange settled 0.9% lower at 18.45 cents a pound, the lowest settlement since August 2010. Wednesday's trading volume for all ICE raw-sugar contracts was 25% higher than the average daily volume this year. "The fact that the volume was good (during the selloff) was a little disconcerting," said Michael McDougall, senior vice president at brokerage Newedge in New York. He pointed to improved rains in No. 1 producer Brazil as the catalyst for the slide in prices this week. "It's taken a lot of caution out of the producers" who are fixing prices for their crops at current levels, McDougall said. "We're still in the midst of the Thai and the Indian harvests, and there could be issues with them, but those might not show up until the tail end of the crop." In the meantime, analysts said prices could fall to fresh lows beneath 18 cents a pound.
http://www.foodbusinessnews.net/articles/news_home/Food_Safety_News/2013/01/Congressmen_contact_energy_dri.as px?ID={0652D256-D46B-4C42-998D-5AF41609B660}[email protected]
1/17/2013 - by Jeff Gelski, FOOD BUSINESS NEWS Congressmen contact energy drink makers directly WASHINGTON – Three members of the U.S. Congress have signed letters sent to 14 companies that sell energy drinks. The letters ask such questions as why the companies market the energy drinks the way they do, what ingredients are in the drinks and what claims do they make in their marketing campaigns. One question deals with marketing energy products to children or teenagers while another asks if the company markets its product as a supplement or conventional food or beverage. Senator Dick Durbin (D) Illinois, Senator Richard Blumenthal (D) Connecticut and House of Representatives member Ed Markey (D) Massachusetts, previously have sent letters to the Food and Drug Administration and the Federal Trade Commission about the safety of energy drinks. All three Congressmen signed letters dated Jan. 17 that were addressed to such companies as PepsiCo, Inc., Coca-Cola and Dr Pepper Snapple Group as well as companies that sell such drinks as Red Bull and Monster Energy. “Energy drink companies need to be clear with consumers about what they think their product is, what it contains and what it can do,” Mr. Markey said. “The broad claims made by these products and their blurred classification in the marketplace make it difficult for consumers, particularly young consumers, from making informed decisions about their consumption.” The F.D.A. is working on a draft guidance designed to clarify for industry the line between dietary supplements and conventional foods and beverages. The F.D.A. also is investigating adverse health reports, including deaths, involving Rockstar Energy, 5-Hour Energy and Monster Energy. The reports do not represent any conclusion by the F.D.A. about whether the products caused the adverse events. “As new products and new patterns of energy drink use are emerging, we are working closely with the F.D.A. to strengthen our understanding of the potential health impact of these products,” Mr. Durbin said. “Energy drink companies can partner in our effort by being forthcoming about the ingredients in their products and the processes they use to determine those ingredients are safe.” Rodney Sacks, chairman and chief executive officer of Corona, Calif.-based Monster Beverage Corp., spoke about the safety of energy drinks in a Dec. 11, 2012, investors’ meeting. He said energy drinks are as safe as coffee purchased at coffee houses, and recent comments questioning the safety of energy drinks are comparable to comments questioning the safety of soft drinks decades ago.
http://www.efeedlink.com/contents/01-17-2013/4558d606-308d-4198-a6d7-c3e566483985-a001.html
Jan. 17, 2013:
China's grain supply remains stable
China has dismissed concerns over its grain supply security, as its grain imports have remained within a reasonable range despite rapid expansion last year.
The amount of wheat, corn and rice China imported from January-November 2012 soared 294.5% on-year but accounted for less than half of the country's combined annual quota for importing the three types of grain, Ministry of Commerce spokesman Shen Danyang said at a press conference. Imports that exceed the quota are subject to much higher tariffs than those within the quota. The government took grain supply security and the possible impact on global markets into account when setting the quotas, Shen said. "The overall scale of imports was obviously within a reasonable range," Shen said.
China imported a combined total of 10.78 million tonnes of wheat, corn and rice in the first 11 months of 2012, Shen said, citing customs figures. He attributed the increased imports to price plunges on global markets, higher domestic demand for animal feed and a low base in 2011. "It is groundless to say China threatens global grain security or that the country's grain supplies are insufficient just because it is importing more grain," Shen said.
China has set import quotas for corn, wheat and rice at 7.2 million tonnes, 9.64 million tonnes and 5.32 million tonnes, respectively, for 2013, according to the National Development and Reform Commission, the country's top economic planner.
http://www.world- grain.com/News/News%20Home/World%20Grain%20News/2013/1/US%20soybean%20export%20sales%20hit%20mark eting%20year%[email protected]
Jan. 18, 2013: by World Grain Staff, www.World-Grain.com
U.S. soybean export sales hit marketing year high
WASHINGTON, D.C., U.S. — Net export sales of U.S. soybeans in the week of Jan. 4-10 were a marketing year high, with more than half of the total going to China despite that country’s cancellation of several purchases in December.
The U.S. Department of Agriculture (USDA) in export sales data released on Jan. 17 said net sales of U.S. soybeans during the week for delivery in the current 2012-13 marketing year totaled 1,608,800 tonnes, five times the prior week’s sales of 321,800 tonnes for the same year and the highest weekly total since the marketing year began Sept. 1, 2012.
The weekly sales included 845,600 tonnes, or 53% of the total, designated for China. An additional 180,000 tonnes of soybeans were sold during the week for delivery in the 2013-14 marketing year, all for China, the USDA said.
The two-year combined sales total for the latest week was more than double the high end of trade expectations that ranged from 550,000 to 750,000 tonnes. China, the largest importer of U.S. soybeans, cancelled earlier purchases of at least 840,000 tonnes, and possibly more designated as "unknown destinations," of U.S. soybeans in December, according to the USDA.
http://www.candyandsnacktoday.com/archives/2013/01/q4-north-american-cocoa-grind-succeeds-estimates.shtml
January 21, 2013; CandyAndSnackToday.com Q4 North American Cocoa Grind Succeeds Estimates Washington, DC — North American cocoa grindings rose 0.95 percent in the fourth quarter of 2012 from the same quarter in 2011 to 120,053 tons, according to NCA data, marking the first year-to-year increase since December 2011. The grind was at the high point of estimates, which indicated it would fall somewhere between negative five percent and a one percent increase. After three declining quarters, the success in this quarter puts North America ahead of Europe on the recovery scale. Although the European Cocoa Association's members processed two-and-a-half times more beans than North America, the fourth quarter European grind was at its lowest point in seven years, dropping 6.2 percent. The NCA also found the aggregate number of plants Canada, the U.S. and Mexico reported in the quarter remained stagnant at 17. The report was compiled using data from Barry Callebaut USA, The Hershey Co., Nestle Chocolate & Confections, ADM Cocoa, Blommer Chocolate Co., and Mars Chocolate North America.
http://www.prnewswire.com/news-releases/asr-group-name-unites-leading-sugar-brands-under-one-identity- 187737691.html
Jan. 21, 2013 - PRNewswire 'ASR Group' Name Unites Leading Sugar Brands Under One Identity Domino Sugar, C&H Sugar, Redpath, Tate & Lyle, Lyle's, Sidul and Sores now present one face to the world
YONKERS, N.Y., Jan. 21, 2013 /PRNewswire/ -- American Sugar Refining, Inc., the world's largest supplier of refined sugar, announces the launch of its new corporate brand name - "ASR Group" - under which its leading brands and affiliated companies will collectively present one face to customers, business partners, employees and the world. (Logo: http://photos.prnewswire.com/prnh/20130121/FL45498LOGO ) ASR Group's dynamic set of companies, with multi-national operations, includes the leading regional brands: Domino Sugar and C&H Sugar in the United States, Redpath in Canada, Tate & Lyle and Lyle's in the United Kingdom, Sidul and Sores in Portugal. ASR Group also includes raw and refined sugar operations in Mexico and Belize. Over the last decade, ASR Group and its portfolio of brands have grown steadily. The company's strategic growth has expanded it across borders and into additional geographies, resulting in better service to its customers -- providing them with innovative products of the best quality, delivered on time and at competitive prices. "Our company initially began with U.S.-based refineries, but our strategic acquisitions over the past 10 years have elevated us to where we stand today: A global company with business activities spanning more than 40 countries worldwide," said Luis Fernandez , co-President of ASR Group. "Our branded and private label sugars, sweeteners and syrups are sold in grocery, food service and industrial channels in the Americas, Europe, the Middle East, India and Asia. As a result of this expansion and the acquisition of leading brands in various markets and sectors, we have concluded that a single, unified identity would better communicate the combined strength and scale of ASR Group to our customers, suppliers, business partners, employees and the communities where we operate." ASR Group is not a new company; rather, it is a new corporate brand name that will jointly identify the group of related companies and portfolio of brands. It will not affect business relationships and activities already in place. The introduction of the new name will begin with the ASR Group logo appearing alongside the company's iconic logos on its packaging, marketing materials and business documents. "Although we are introducing a new global corporate identity, our unwavering belief in our regional brands and logos remains unchanged, and they will continue to dominate our consumer packaging and marketing efforts," said Antonio L. Contreras , co-President of ASR Group. "At the same time, the presence of the ASR Group logo is a clear signal that our brands are individual building blocks that together form a powerful whole. We look forward to presenting the ASR Group identity to the world. It is evidence of our continued commitment to our business." ASR Group is the world's largest cane sugar refining company, with an annual production capacity of more than 6 million tons of sugar. The company produces a full line of consumer, industrial, food service and specialty sweetener products. Across North America, ASR Group owns and operates six sugar refineries in Yonkers, New York; Crockett, California; Baltimore, Maryland; Chalmette, Louisiana; Toronto, Canada and Veracruz, Mexico. ASR Group also owns specialty sweetener production facilities and a strategic warehousing and distribution system that combine to provide seamless production and delivery of its products to customers across the United States, Canada and Mexico. In the European Union, ASR Group owns and operates sugar refineries in London, England and Lisbon, Portugal. Its brand portfolio includes the leading brands: Domino®, C&H®, Florida Crystals®, Redpath®, Tate & Lyle®, Lyle's®, Sidul® and Sores®. ASR Group also owns sugar mills in Mexico and Belize. ASR Group is owned by Florida Crystals Corporation and Sugar Cane Growers Cooperative of Florida. www.ASR-Group.com Contact: Brian O'Malley President, Domino Foods Inc. 914-774-0454 Jonathan Bamberger President, Redpath Sugar Ltd. 647-287-5424 Ian Bacon President, Tate & Lyle Sugars +44 7802 361614 SOURCE: ASR Group
http://www.farmdoc.illinois.edu/marketing/weekly/html/012213.html
January 22, 2013; by Darrel Good, Agricultural Economist, University of Illinois
Early Focus on the Prospective Size of the 2013 U.S. Corn Crop The drought reduced U.S. corn crop of 2012 suggested that corn prices might behave in a pattern generally described as “short crops have long tails.” The phrase depicts the expectation of rapidly rising prices that peak near harvest time, decline in an unspecified pattern over the next several months, and return to pre-drought levels as early as the following marketing year. The decline in prices is expected as a result of a slowdown in consumption and a return to normal production. Corn prices this year have generally followed the expected short-crop pattern as the expected consumption and supply responses continue to unfold. The pace of consumption of U.S. corn so far in the 2012-13 marketing year has been slower than that of last year. However, the slowdown has been modest and has come primarily in the export market and in the production of ethanol rather than in the domestic feed market as earlier expected. The rapid pace of domestic feed and residual use of corn revealed on January 11 breathed some life back into old crop corn prices even though the pace of exports and domestic processing remain low. In addition to a slowdown in consumption of U.S. corn, the USDA projects another large corn harvest in Brazil in 2013 and a rebound in production in Argentina following the drought reduced harvest of 2012. While likely large, the size of those crops is yet to be determined and recent dryness in some areas has raised some yield concerns. Some of the elements that contribute to the price decline following a short crop are clearly occurring. The final element, and likely the most important element, of the expected price decline is the size of the 2013 corn crop. The question is whether production will fully rebound from the extremely low level of 2012 as it has following other droughts over the past 50 years. Production prospects begin with expectations for planted acreage. Planted acreage totaled 97.15 million acres in 2012, 5.219 million more than planted in 2011 and 3.628 million more than the recent peak in 2007. For the most part, analysts are reporting expectations of even larger acreage in 2013. Those expectations appear to be near 99 million acres. The increase would come from an overall increase in row crop acreage as some land has come out of the Conservation Reserve Program and from reductions in the acreage of less competitive crops. Planted acreage of 99 million would point to acreage harvested for grain near 91.5 million acres under non-drought conditions. That would be an increase of just over four million acres from acreage harvested in 2012 when more than the usual amount of acreage was harvested for silage and abandoned. Such acreage would point to prospects for an extremely large crop in 2013. Early season acreage expectations, however, are often not a good forecast of actual acreage. Last year, for example, The USDA’s March Prospective Plantings report indicated intentions to plant 95.864 million acres of corn, nearly 1.4 million more than the average trade guess. Actual planted acreage exceeded early expectations by the trade by nearly 2.7 million acres. The other consideration in forming production expectations is obviously expectations for the U.S. average yield. Most base their early yield expectations on an analysis of trend yield. Trend yield analysis, however, is not straight-forward. First, average yields over any time period reflect both changing technology and variations in weather conditions. A calculation of the true technological trend in average yields requires that yield observations be “corrected” for annual variations in weather conditions. Such correction requires the application of models that separately account for the yield impact of technology and weather. A failure to do so can result in a biased estimate of trend. Following three consecutive years of low corn yields, a trend calculation that does not adjust for variations in weather conditions will understate trend yield for 2013. A second issue surrounding trend yield calculations is the length of the time period used to calculate the trend. Different periods result in different trend calculations. We continue to think that 1960 through 2012 is the correct time period for calculating the 2013 trend yield. A second consideration for some in forming early yield expectations is the state of soil moisture going into the planting season. However, as learned again last year, the yield implications of those conditions are dwarfed by the impact of growing season weather. While current drought conditions are of concern, those conditions alone do not provide much information about 2013 yield prospects. While prices for the 2013 corn crop are currently about $0.70 below the peak reached in September 2012, they are well above the level that would be expected if the 2013 crop reached its full potential. Next month, the USDA will release projections for the U.S. farm sector for the next 10 years. There will be a lot of interest in the 2013 corn acreage and yield projections contained in that report.
http://www.world-grain.com/news/news%20home/[email protected]
January 23, 2013: Commodity Online India Limited
Soybeans, Corn to be impacted by dry weather in Argentina, Brazil India, Jan. 23 -- Dry weather is threatening to reduce the production of soybean in Brazil and Argentina the major producers of both the commodities after USA. According to news reports Central Argentina has received only one to two inches of rain in the previous 30 days. A private consultancy has estimated Brazil crop to be lower at 81 mn tons 2% lower than US Department of Agriculture estimate. Argentina corn production to fall to 53 mn tons again 2% below USDA forecast. Central Argentina is the heartland of corn and soybean production in the country. At Chicago Board of Trade soybean March futures contract has risen to $14.51 bushel on Tuesday settlement from 14.13 levels per bushel last week.Corn futures at CBOT has risen to $7.28 per bushel after a recent fall to $7.24 per bushel.
http://www.bloomberg.com/news/2013-01-24/sugar-rush-leaves-u-s-with-biggest-glut-in-decade-commodities.html
Jan 24, 2013: By Marvin G. Perez , BLOOMBERG Sugar Rush Leaves U.S. With Biggest Glut in Decade Record U.S. sugar output is creating the biggest domestic glut in a decade, reducing costs for Hershey Co. and making it more likely the government will need to stockpile supply to support farmers. Production will jump 6.9 percent to 9.07 million short tons (8.23 million metric tons) in the year ending Sept. 30, the U.S. Department of Agriculture said Jan. 17. Stockpiles are forecast at 2.2 million short tons, the most since 2000. Domestic prices will drop 5.8 percent by October to 20 cents a pound, extending last year’s 38 percent slump, according to the median of seven analyst estimates compiled by Bloomberg. “There’s a massive quantity of sugar being produced,” said Craig Ruffolo, a vice president at McKeanny Flavell Co., the Oakland, California-based sugar broker whose clients have included Kraft Foods Group Inc., General Mills Inc. and Bunge Ltd. “Our supply situation is bursting at the seams.” While Americans are eating the most sugar since the 1970s, that’s still not enough to absorb increasing supply. Sugar-beet harvests expanded almost twice as fast as demand in the past four years, and the cane crop is the biggest since 2004. Food makers that didn’t import sugar before 2002 now get about 33 percent of supply from overseas after a free-trade agreement spurred a surge from Mexico. That’s reduced the premium paid for domestic sugar to 2.7 cents a pound relative to world prices, from 10.1 cents a year ago. The decline is reducing profits for farmers and widening margins for food makers. Raw Materials While commodities have been in a bull market since August, domestic-sugar futures began a bear market in April and slumped the past five quarters, the longest losing streak since the contract started in 2008. Domestic-sugar prices fell 5.9 percent to 21.23 cents this month on ICE Futures U.S. in New York, as the Standard & Poor’s GSCI Spot Index of 24 raw materials rose 2.7 percent and the MSCI All-Country World Index of equities gained 4 percent. A Bank of America Corp. index shows Treasuries lost 0.3 percent. Back in May, when U.S. sugar fetched more than 30 cents, Frank Jenkins, the president of Wilton, Connecticut-based Jenkins Sugar Group, the largest domestic broker, predicted output gains would send futures to the mid-20s. Prices fell below 25 cents by mid-October and have kept dropping. Beet Record Beet-sugar output produced mostly in northern states including Minnesota and North Dakota will climb to a record 5.2 million short tons this year, 23 percent more than in 2009, the USDA says. Farmers are using more genetically modified seeds to boost yields and planting 13 percent more acreage than four years ago, after prices exceeded 40 cents in 2010 and 2011. Cane-sugar production in southern states including Florida and Louisiana will reach 3.87 million short tons, 22 percent more than in 2011. The government still restricts imports to support farmers and offers loans that guarantee a minimum price of 20.9 cents for unrefined sugar. If it drops below that level, processors who get the credits can repay their debt by selling the sugar to the USDA. The most ever acquired by the government through the program was 764,000 tons in the year ended Sept. 30, 2001. Processors pledged 1.83 million short tons as collateral for $775.3 million of loans, equal to 20 percent of the crop. A drop below the USDA’s target price would put a “large portion” at risk, said Barbara Fecso, a USDA dairy and sweeteners analyst in Washington. She declined to predict how much the government may end up owning. Buying surplus sugar would add to a budget deficit that the Treasury estimated in October reached $1.09 trillion in the year ended September 2012. Import Quotas Sugar is the only major agricultural commodity grown in the U.S. in which the government actively manages imports. Quotas started in the 1930s and survived a challenge in Congress last year. An Iowa State University study in 2011, when prices averaged 38 cents, said that ending the limits would cut consumer costs by $3.5 billion annually. Retail prices averaged a record 69 cents a pound last year, from 42 cents a decade earlier, Labor Department data show. The sugar glut means “retail prices will probably come down,” though declines tend to lag behind reductions in wholesale costs, Tom Earley, an economist with Agralytica, a food and agriculture consulting firm in Alexandria, Virginia, said in a telephone interview. Reduced Incentive The diminishing premium for U.S. sugar relative to international prices also may tighten supply by reducing margins for exporters, said McKeanny Flavell’s Ruffolo. ICE Futures U.S.’s No. 11 raw- sugar contract, reflecting international prices, tumbled 26 percent in the past year, compared with 39 percent for domestic futures. The U.S. government has few options in curbing shipments from Mexico because of the free-trade accord, and the USDA predicts a 30 percent jump in imports to 1.388 million short tons this year, more than any other foreign supplier. The agency anticipates that Mexican production will rise 12 percent to an eight-year high. Hershey, the maker of chocolate Kisses and Reese’s candies, expects higher gross margins this year because of “stable to down” commodity costs including sugar, Chief Financial Officer Humberto Alfonso told analysts on a conference call in October. Its shares rose 28 percent in the past year and the Hershey (HSY), Pennsylvania-based company will report a 16 percent gain in net income to $806.3 million in 2013, the mean of six analyst estimates compiled by Bloomberg show. Candy Competitors “The price U.S. manufacturers pay for sugar is still considerably higher than the world price our competitors overseas pay,” said Mitchell Goetze, the president and chief operating officer of Baltimore-based Goetze’s Candy Co., the maker of Caramel Creams and Cow Tales. “Confectionery manufacturers have enough challenges in our everyday operations without also having to struggle against a government program that arbitrarily restricts the supply of sugar.” Rising U.S. production is compounding a third consecutive annual global glut. Goldman Sachs Group Inc. cut its three-month forecast for international prices to 18.5 cents from 22 cents on Jan. 14, citing the surplus. Raw sugar for delivery in March closed at 18.5 cents yesterday on ICE. Two Quarters World output will exceed demand by 7.8 million metric tons this year, Czarnikow Group Ltd., the London-based sugar trader, said Dec. 19, increasing a forecast it made in August by 9.9 percent. Rabobank International boosted its estimate for the surplus by about 12 percent to 6.6 million metric tons on Jan. 17. It expects world prices to average 18 cents to 20 cents over the next two quarters. Hedge funds and other large speculators held a net-long position, or bets on higher prices, of 12,162 contracts as of Jan. 15. That compares with a five-year average of 112,000 contracts, U.S. Commodity Futures Trading Commission data show. “There’s going to be a surplus over the next few months and we may make some new lows,” said Claudio Oliveira, the head of trading at Castlestone Management LLC in New York, which manages about $130 million of assets. “Farmers will stand to lose money.”
http://www.foodnavigator-usa.com/content/view/print/736000
Jan 29, 2013: By Stephen Daniells, FOODnavigator-USA
Increasing demand seen for pea protein
For a long time in the shadow of soy as a plant protein source, pea protein is establishing itself in food and beverage applications, with the US market set to explode, say industry experts.
“With an average annual growth of 5% in volume terms over the last three years, the plant-based protein market has to satisfy ever-increasing consumer demand,” said Bruno Gehin, corporate product manager – proteins for Roquette. “The ability to meet this demand depends on new plant- derived sources delivering reliable, sustainable and affordable alternatives to animal proteins or soybeans. Consumers want products that are healthy and sustainable and that at the same time offer an attractive taste and texture.”
To meet this increasing demand, pea protein isolates are increasingly finding use in a range of food and beverage products, from nutritional bars to ready-to-drink beverages and powders, and from pastas to batters and breadings.
While pea protein is not new – suppliers like Roquette and Manitoba-based pea ingredients specialist Nutri-Pea have been selling the ingredient for some years – the US market for pea protein isolate is relatively small, said Brent Lambert, VP-proteins & gums for Farbest Brands, “but it’s ready to explode. Consumers are just starting to be introduced to this ingredient,” he added. “We are seeing gluten-free products containing pea protein. This is a fringe ingredient starting to get into the mainstream.”
Allergen-free & amino acids Pea protein isolates are gaining in popularity among food manufacturers because of the clean label, and non-allergy properties of the ingredient, said Anne Brown from the Scoular Company, which distributes the Nutri-Pea ingredients. It’s also a cost effective protein when compared to other proteins, she said. The issue with pea protein, sourced from Canada and the EU, has been flavor, she added. However, most of the suppliers now claim to have clean flavor profiles for their ingredients.
“Although often recommended based on their emulsifying properties, pea protein isolates do offer other functional properties,” explained Dr Kevin Segall, food scientist, Burcon NutraScience. “They also may be incorporated in food products to provide nutritional benefits. Pea proteins have an amino acid profile rich in lysine, arginine and branched chain amino acids.”
Gehin said that pea protein is the richest source of arginine (about 8.7% on a protein weight basis), easily eclipsing most conventional protein sources. “The importance of arginine cannot be exaggerated,” he said. “Arginine is considered a conditionally essential amino acid since it is rate- limiting for protein synthesis. It is involved in nitrogen metabolism, in growth and in cell division. Arginine not only helps build a lean and muscular body, it is also a precursor of creatine, an important energy source that improves athletic performance. An arginine intake of 6-12g per day is therefore recommended for sports nutrition.”
Unsurprisingly, pea protein is increasingly popular in sports nutrition products. “Comparing to dairy proteins amino acid profile, our pea protein Nutralys is closer to caseinate than lactoserum but is also very complementary to whey proteins, in particular for sports nutrition products,” added Gehin.
Blending In the US, pea protein is now being combined with other “high-value vegetable ingredients such as plant-based anti-oxidants and micro-algae to create Green Mixes that have found their niche in the healthcare market”, he said. “The market is continuing to diversify and consumer demand for novel high-protein formulations continues to grow. Ready-to-drink beverages, tablets and capsules, gels, snacks and nutrition bars - all with pea protein - are under development. “All these products can be broadly placed in one or the other of two classes: using pea protein as an alternative and/or as a complement to other protein and non-protein ingredients.”
Burcon’s Dr Segall added: “Consumers are becoming increasingly aware of the benefits of protein consumption in general, such as how consuming protein promotes muscle synthesis and recovery after exercise, helps reduce muscle loss in older adults and provides greater satiety than carbohydrates and fats.”
Next generation? Canada’s Burcon is working on commercializing its Peazazz-branded ingredient. The company, which previously has had success with Clarisoy (now in ADM’s stable), expects to have a Peazazz semi-works production facility online and producing commercial quantities to drive primary market demand in 2013.
Dr Kevin Segall, food scientist, Burcon NutraScience, told us that the ingredient is differentiated from other pea protein isolates by its clean flavor and functional properties. “Conventional pea protein isolates are only partially soluble at low pH, with the particles that do not dissolve precluding the preparation of transparent acidic beverages and tending to settle out. Peazazz is completely soluble in low pH systems and produces solutions that are transparent and heat stable. These properties, together with its clean flavor, make Peazazz highly suitable for fortifying acidic beverages such as soft drinks, sports drinks, juices, fortified waters, etc,” he said. The company’s pea protein isolate can be used in the same products as conventional pea protein isolates, he said, “but is also highly suited for use in low pH systems such as acidic beverages”.
Roquette is also working on refining its pea protein offering, said Gehin. At last year’s HiE, the French company launched a new grade of its pea protein called Nutralys pea XF exp.. “This prototype is designed for special diets like sports and senior people as well as for weight management. This new grade is probably the world's finest protein, being able to deliver lower viscosity, good cold water powder dispersibility, a clean taste plus finished products with a smooth texture,” he said.
http://www.fortbendstar.com/2013/01/30/iconic-imperial-sugar-company-ceo-robert-hanna-passes-away/
January 31, 2013; By Elsa Maxey, The Fort Bend Star Iconic Imperial Sugar Company CEO Robert Hanna passes away
Sugar Land’s Robert (Bob) Hanna, 84, passed away on Friday, January 25. Accounts indicate that he had been in the hospital with health issues. Hanna, who served in the U.S. Army after graduating from Millikin University in Illinois, accepted a sales position with the Imperial Sugar Company in 1955, which began his career with the sugar factory followed by a series of promotions and selection as President and CEO in 1979. He served in that role for 14 years until his retirement. Hanna is credited with leadership that helped Imperial Sugar emerge as one of the top sugar companies in the U.S. It was during Hanna’s tenure that Imperial Sugar effected a merger with Holly Sugar which included that company’s beet sugar processing facilities in California, Wyoming, Montana and Texas creating the Imperial Holly Corporation. Hanna, who was born during the onset of the Great Depression when the sugar company was operating in the red and experienced workforce cutbacks, would in his prime take the helm of what the Texas State Historical Commission refers to as the oldest business in Texas, and position the sugar company towards a much sweeter future long before the refinery’s closure in 2003. Imperial, founded in 1843 and documented to have given the city of Sugar Land its name, is closely associated with Hanna. He received the sweetener industry’s most prestigious award, the Dyer Memorial Award, recognizing him as “Sugar Man of the Year in 1993.