Message from Chip Smith, President: Chip Smith, President 03/01
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Issue #3 March 31, 2016 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Message from Chip Smith, President: Hello NSIMA Members: Spring can bring the return of warm, but also, turbulent and unpredictable weather. Right now, that seems like the climate we are entering into in our industry. With GMO issues, proposed sugar taxes, and global deficits, there a lot of thunderheads on the horizon. The articles in this newsletter focus on many of these issues, along with industry news. Please enjoy them, as always. As mentioned in last month's newsletter, our Sugar Week luncheon will again be held at Smith and Wollensky's Steakhouse in Manhattan. Joe Gardella of Sweetener Supply will be the speaker and we are hoping that you will all join us. Please RSVP to Bruce Penner and send in your checks. We look forward to seeing you all there. Best Regards, Chip Smith, President Also in this issue: (Click on the Headline, or scroll down to the document) 02/29 - What does non-GMO mean? It depends on the consumer, says judge in Chipotle lawsuit 03/01 - USDA predicts record agricultural imports in 2016 03/01 - Senators urge new sugar tax, ad ban to combat obesity in Canada 03/02 - Many Americans continue to drink sugary beverages daily, CDC research concludes 03/02 - U.S. committee approves bill on voluntary GMO labeling 03/02 - Brazil to challenge Thailand sugar subsidies at WTO 03/04 - Barry Callebaut names Real Stevia as a future chocolate sweetener 03/06 - Friendly Sons to host Domino Sugar chief 03/07 - Southern Minn. joins National Sugar Marketing 03/08 - Scientists find way to make sweetest sweetener taste sweeter 03/08 - Sugar supplies in the U.S. - finding equilibrium 03/08 - Sweeteners: The next generation 03/10 - General Mills to increase sourcing for organic ingredients 03/15 - March issue of the SUGAR AND SWEETENERS OUTLOOK 03/15 - Cuban raw sugar output well below expectations 03/16 - Senate blocks bill that would override state GMO labeling laws 03/16 - UK government shocks with sugar tax announcement 03/17 - 'Don't fall out of love with sugar' (David Berg) 03/23 - Amazon for ingredients: New e-commerce platform rolls out with transparency and factory-direct pricing 03/23 - Green Pool raises global sugar deficit forecasts 03/24 - First Amalgamated grower becomes ASGA president 03/29 - Cocoa’s future lies in Latin America, says Hardman Agribusiness http://www.foodnavigator-usa.com/content/view/print/1224932 Feb 29, 2016; By Elaine Watson+, FOODnavigator-usa.com What does non-GMO mean? It depends on the consumer, says judge in Chipotle lawsuit A California federal court has dismissed a high-profile lawsuit alleging Chipotle falsely advertised its food as non-GMO. And while it has given the plaintiff leave to amend her suit, it has made it clear she will have to come up with a stronger argument next time to support her claims. The lawsuit – filed last August– alleged that Chipotle’s non-GMO claims were “false, misleading, and deceptive”, as it sold meat and dairy products from animals fed GM feed, and fountain drinks from third parties such as Coca-Cola containing sweeteners from genetically engineered corn. However, US district judge Haywood Gilliam has just tossed the case on the grounds that the plaintiff failed to specify which products she purchased or demonstrate any economic injury, among other things. He also speculated that her ultra-strict interpretation of ‘non-GMO’ (which is also shared by the Non-GMO Project) was likely not shared by ‘reasonable’ consumers: “Plaintiff contends that the reasonable consumer would interpret ‘non-GMO ingredients’ to mean meat and dairy ingredients produced from animals that never consumed any genetically modified substances," said judge Gilliam. "The Court questions whether the complaint, as currently pled, plausibly supports such an interpretation.” As for the corn-based sweeteners in Chipotle’s fountain drinks, Chipotle had “explicitly disclosed” their provenance (the GM corn factor) on its website, he added, making it harder to prove that consumers had been misled. Non-GMO claims made by different manufacturers may be underpinned by different standards While learning that this lawsuit has been tossed might reassure some industry stakeholders, however, the fact it was filed at all highlights that firms are vulnerable to civil litigation over non-GMO claims if genetic engineering has been used at any stage in the production process, even if their final products do not contain any detectable GM ingredients. It also shows that non-GMO claims made by different manufacturers may be underpinned by different standards and definitions. Some dairy companies, for example, markets their wares as 'non-GMO' as they contain no genetically engineered ingredients. However, these products would not qualify for the Non-GMO Project Verified stamp because they use milk from animals that may have been fed GM feed. GMO labeling and the law There is not, yet, a legal definition of ‘non-GMO’, although most bills calling for mandatory GMO labeling in US states (including the law coming into force in Vermont in July) would not require GM labels on meat or dairy from animals fed GM feed, or on products made with GM processing aids/enzymes. Food companies, meanwhile, are now scrambling to get their labels in order as the July 1 deadline approaches to comply with the GMO labeling law in Vermont, and a federal GMO labeling solution that all stakeholders can support has yet to be hammered out in Congress. The federal Safe and Accurate Food Labeling Act 2015 , which passed in the House of Representatives last year, would pre-empt state laws that mandate GMO labeling (eg. it would trump the law in Vermont) and set up a federal voluntary labeling system instead. However, a companion bill has not yet passed in the Senate, with all eyes now on Senator Pat Roberts (R-Kan), who is trying to garner bipartisan support for a similar voluntary scheme. http://www.world-grain.com/news/news%20home/LexisNexisArticle.aspx?articleid=2543838368&e=INSERT_EMAIL March 1, 2016; by World Grain Staff, WORLD-GRAIN.com USDA predicts record agricultural imports in 2016 The US Department of Agriculture (USDA) says agri imports are set to reach $118.5 billion in 2016, an increase of more than $4 billion over last year. Exports are predicted to fall to $125 billion, their lowest level since 2010. Projections for both imports and exports are below estimates released in November 2015. The decline is largely due to lower prices across the agriculture sector. An Outlook Report released by the USDA's Economic Research Service and Foreign Agricultural Service credits lower prices, strong competition and reduced demand in the global market for the decline in exports, as the US trade surplus in agricultural goods is expected to narrow to its lowest level since 2006. Overall, US agricultural exports are projected to fall by more than 10 percent compared to 2015, grain and feed exports by 14 percent, and "oilseeds and products" by 20 percent. Livestock, poultry and dairy is expected to decline by 12 percent, and sugar and tropical products by 20 percent, while horticultural products, including fresh and processed fruits, vegetables and tree nuts, are expected to increase by 2 percent. Agricultural imports to the US are projected to rise by 4 percent in 2016 to $118.5 billion. Grain and feed imports are forecast to grow by 2 percent to $11 billion, while horticultural imports are expected to grow by 8 percent to $53.9 billion. Imports of sugar and tropical products are forecast to grow by 14 percent to $26.9 billion. The increase is due largely to higher consumer incomes in the US. Livestock and poultry imports are forecast to decline by $3.7 billion, or 20 percent of their 2015 number, due to record cold storage stocks resulting from high imports in 2015 and increases in US beef production. The USDA predicts rising interest rates in the US and poor economic conditions elsewhere in the world will continue to drive dollar appreciation against key currencies in 2016, though not as strongly as in the previous year. Competition from Brazil and Argentina in particular is expected to drive down exports of key US agricultural goods. A negative outlook for recession-plagued Brazil and the dismantling of protectionist policies in Argentina is expected to drive down currency values for two of the US' most direct competitors in the agri export market http://www.theglobeandmail.com/news/politics/senators-urge-new-sugar-tax-ad-ban-to-combat-alarming-obesity- rates/article28963736/ Mar. 01, 2016; by Michelle Zilio, THEGLOBEANDMAIL.com Senators urge new sugar tax, ad ban to combat obesity in Canada Ottawa — A Senate committee is calling for a national campaign to combat obesity, including a possible new tax on sugar-sweetened and artificially sweetened beverages, and a ban on food advertising that targets children. The recommendations are made in a new report on the “alarming obesity rates in Canada,” released Tuesday by the Senate’s standing committee on social affairs, science and technology. Committee chair Kelvin Ogilvie, a Conservative, and deputy chair Art Eggleton, a Liberal, released the report at a news conference in Ottawa on Tuesday. “We can’t sugar-coat it any longer. There is an obesity crisis in Canada and sugar is a big part of that problem. We must act,” Mr. Ogilvie said. http://www.foodnavigator-usa.com/Regulation/Many-Americans-drink-sugary-beverages-daily-CDC-research- concludes/?utm_source=newsletter_daily&utm_medium=email&utm_campaign=02-Mar- 2016&c=nr4GVAI4KC2rlX%2BvMcLusKs9hrJjcnZQ&p2= Mar. 02, 2016; By Elizabeth Crawford, FOODnavigator-usa.com Many Americans continue to drink sugary beverages daily, CDC research concludes Fewer Americans are reaching for sugar sweetened beverages, but consumption remains high – prompting a call for more aggressive measures to further reduce ingestion, according to new research released by the Centers for Disease Control and Prevention.