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.
The report , published Feb. 26, shows 30.1% of adults in 23 states and the District of Columbia drink one or more sugary drinks daily, including regular soda, fruit drinks, sweet eat and sports or energy drinks. These results, based on a survey of more than 157,000 adults in 2013, are “somewhat lower” than the 2009-2010 National Health and Nutrition Examination survey finding that 50.6% of US adults drank at least one sugar sweetened beverage on any given day, according to the study. The drop could be due to differences in how the two studies were conducted, but even if it is not, the prevalence of sugary beverage consumption is still too high – especially among certain sub-populations, argue the researchers of the current study. They explain that frequent sugar sweetened beverage consumption is associated with obesity, type 2 diabetes and heart disease.
Likewise, some groups of people may be at higher risk of these consequences because they drink more sugary drinks. Namely, young adults, men, non-Hispanic blacks, the unemployed and those with less than a high school education are more at risk because they drink more sugar sweetened drinks, the survey found. In particular, it found 18- to 24-year-olds were 2.3 times more likely to drink more than one sugary beverage a day than people older than 55 years. Men also were 1.4 more times likely to drink sugary beverages than women, while blacks and Hispanics were 1.5 and 1.4 times more likely than whites, respectively, according to the study.
Sugar sweetened beverage consumption also varied by region, with those in the Northeast and South more likely to drink sugary beverages than those in the Midwest. The research found 68.4% of adults in the Northeast drink at least one sugary beverage daily, compared to 66.7% in the South and 58.9% in the Midwest.
Reflecting on the survey results and shift in soda consumption over time, the authors argue “continuation of public health efforts aimed at decreasing high [sugar sweetened beverages] intake is important.” They suggest “education and awareness initiatives, increasing access to and promotion of healthier options though nutrition standards, including food guidelines and increasing the availability and promotion of drinking water in schools and public venues.”
The Center for Science in the Public Interest agrees effective policies could do more to protect the public’s health. “We need soda taxes and warning labels. We need to continue the push to remove sugar drinks from kid’s meals at restaurants, hospitals and health-care settings, and government facilities,” CSPI President Michael Jacobson said in a written statement. “Public health departments need to mount and sustain hard-hitting ad campaigns that tell consumers the truth about the harm that sugar drinks cause,” he added.
Politicians & restaurants respond Some state legislators, restaurants and public health advocates are rising to this call for action. Most recently, Philadelphia Mayor Jim Kenney proposed a 3 cent tax per ounce on sugar sweetened beverages. The proposal, introduced in late February, could help pay for Kenney’s ambitious plans, including a goal of providing universal prekindergarten.
The only other US city that has a sugar tax like this is Berkeley, Calif., although other cities have proposed similar taxes in Similarly, legislation put forward in New York would require warning labels on sugar-sweetened beverages in the state – a measure supported by scientists, researchers and CSPI.
Finally, several restaurants are removing sodas from children’s menus. Jack in the Box made the move earlier in February, following the lead of McDonald’s, Burger King, Wendy’s, Dairy Queen and Applebee’s.
http://www.world- grain.com/articles/news_home/World_Grain_News/2016/03/US_committee_approves_bill_on.aspx?ID={A03AE421-8031- 4A30-B5E3-8EBA294C8350}&cck=1
3/2/2016 - by World Grain Staff, WORLD-GRAIN.com
U.S. committee approves bill on voluntary GMO labeling WASHINGTON, D.C., U.S. — The U.S. Senate Committee on Agriculture, Nutrition and Forestry on March 1, by a 14 to 6 vote, approved a bill establishing a national voluntary bioengineered food labeling standard and preempting any state or local laws that would require the mandatory labeling of such foods. “It is clear that what we’re facing today is not a safety or health issue. It is a market issue,” said Pat Roberts, U.S. Senator and chairman of the Senate Committee on Agriculture, Nutrition and Forestry. “This is really a conversation about a few states dictating to every state the way food moves from farmers to consumers in the value chain. We have a responsibility to ensure that the national market can work for everyone, including farmers, manufacturers, retailers, and consumers.” Several committee members expressed the importance of advancing the bill promptly to the full Senate in view of the fact Vermont’s mandatory labeling bill takes effect July 1. Some committee members voted to advance the bill while stating their vote on the final legislation would be contingent on improvements that they said were required to address the concerns of citizens who want to know whether their food was manufactured by means of bioengineering. The legislation has the support of more than 650 farmers, cooperatives, agribusinesses, processors, seed makers, handlers, food and feed manufacturers, lenders, and retailers. “We find the forward momentum building behind this bill encouraging, and we urge the Senate to quickly pass this bill for the good of America’s farmers and consumers,” said Chip Bowling, National Corn Growers Association (NCGA) president. Vermont’s mandatory law requiring on-package labels of foods containing ingredients that have been genetically modified takes effect in July, and unless Congress acts swiftly, families, farmers and food companies will face chaos in the market and higher costs, NCGA said. Multiple studies have shown that the associated costs with Vermont’s GMO-labeling law and a subsequent patchwork of state laws will cost American families hundreds of dollars more in groceries each year – with low-income Americans being hit the hardest. The U.S. House of Representatives last July passed legislation on this topic with a bipartisan vote of 275-150. The Senate Agriculture Committee last October held a hearing on agriculture biotechnology with federal regulators and perspectives from producers and consumers – the first biotechnology hearing in 10 years. The hearing focused on science and the role of the regulatory system to help ensure a safe and affordable food supply for consumers at home and around the globe. “Now, our attention turns to the full Senate, and we will begin our press on senators from both parties to support this legislation,” said Richard Wilkins, American Soybean Association president. “For soybean farmers, the bill represents our continued ability to use biotechnology within our operations. It means growing more while using less, and it means meeting the needs of a demanding American marketplace, and growing global population. We will communicate those benefits to senators every day until this bill is passed and signed into law.
http://af.reuters.com/article/commoditiesNews/idAFL2N1691TT
March 02, 2016; by Alonso Soto and Marcelo Teixeira, REUTERS
Brazil to challenge Thailand sugar subsidies at WTO
BRASILIA, March 2 (Reuters) - Brazil will challenge Thailand at the World Trade Organization (WTO) over subsidies for sugar producers that it says have dragged down global prices for the sweetener, the Trade Ministry said. Brazil said the Thai government has given support to cane growers and sugar mills that is inconsistent with international trade agreements, allowing the Asian country to win market share at the expense of Brazilian producers. "These subsidies have been subject of several questionings at different committees in the WTO, but we saw no signs of changes," the Brazilian Trade Ministry said in a statement. Although WTO cases take years before a ruling is reached, the move could potentially shake up the global sugar market, given that Brazil and Thailand are the world's two largest exporters of the sweetener. Last year, Brazilian sugar producers said they were gathering evidence to launch the case against Thailand and India for subsidies they say could cost them $1.2 billion a year in revenue. Brazil said Thailand's favorable policies towards its sugar sector had the effect of raising the country's exports as a share of the global market from 12.1 percent to 15.8 percent in the past four years. Over the same period, Brazil fell to 44.7 percent from 50 percent, according to the ministry. Thailand said on Wednesday that Brazil's claim was baseless. "There is no government subsidy. Everything is consistent with trade agreements," Worawan Chitaroon, deputy secretary-general of the Cane and Sugar Industry Policy Bureau under Thailand's Industry Minister, told Reuters. Monetary support received by Thai sugar producers came from the country's Cane and Sugar Fund, which raised the money itself, Worawan said. When the fund did not have enough money, it sought loans from the state-owned Bank for Agriculture and Agricultural Cooperatives, but the government did not have any role in this, she said. Brazil's cane industry group Unica has been asking its government to take action against Thailand and India for some time. It blames the policies of the two Asian countries for stimulating sugar production over a period when the commodity endured a long cycle of low prices that only now seems to be ending. This is not the first time Brazil has challenged a country over sugar subsidies. Brazil won a landmark case against the European Union in 2004 that triggered a complete overhaul of the bloc's policies for sugar production, which had long lasting implications for the global market. Brazil also won its case against U.S. cotton subsidies before the WTO
http://www.confectionerynews.com/content/view/print/1227506
Mar 04, 2016; By Douglas Yu+, Confectionerynews.com
Barry Callebaut names Real Stevia as a future chocolate sweetener
Barry Callebaut will soon start using the Real Stevia Company’s Real Stevia as a sweetener in its chocolate portfolio.
The chocolate supplier conducted quality tests with Real Stevia and signaled its "approval" for the ingredient in stevia sweetened chocolate. Real Stevia’s managing director, Sophia Horn af Rantzien said the move opened doors Barry Callebaut to reach out to more businesses that can add stevia sweetened chocolate to their portfolio. “The approval has been a long process in several stages, including testing of organoleptic properties and production process auditing,” she said. However, details regarding how Barry Callebaut uses for its portfolio have not been determined yet, according to Rantzien.
Sustainably sourced stevia The Real Stevia product that Barry Callebaut has approved is a purified stevia extract derived from the stevia leaf, said Rantzien. “The sweetness of the extract is at least 250 times sweeter than sugar,” she said. Real Stevia sources its raw material from China and Paraguay, according to Rantzien. In both countries, the company follows the stevia leaves from the farmers, through the collection points, into the warehouse, through production and all the way to their customers, she said. “This traceability not only allow us to quickly react to potential future problems but also to turn every stone on a daily basis to continually improve and make sure our operation is truly sustainable.”
Concerns of stevia’s aftertastes Rantzien admits there used to be concerns that the taste of stevia was not good enough, and critics say it creates a bitter licorice-like aftertaste. However, she said stevia and sugar is an excellent mix as they work in synergy to improve taste and sweetness. “In most product formulations, a 50% sugar reduction won’t affect the taste of the products,” Rantzien said. “What WHO and FDA are saying is that society must cut down on the sugar intake, not give it up, and a 50% reduction in sugar goes a long way both for the food and beverage industry and consumers.”
Europe is a tough, yet increasing market for stevia What’s interesting to Rantzien is that previous research shows the age group buying most stevia sweetened products today are women between 30 to 49 years old, but the age group that are most positive towards stevia are between 18 to 29 years old. “The young generation will continue to drive the move away from sugar and artificial sweeteners,” she said. However, compared to North America, Europe is a tougher market for stevia from a legislative view, and is also a very fragmented market, Rantzien said. “The approval for stevia extracts came in 2011, three years after the US approval and some markets are now leading the adoption of stevia in Europe, notably Great Britain and Scandinavia. But stevia-use is picking up at increasing speed all over.” Globally, the market for stevia is expecting to grow 8% to 17% over the next 20 years, Rantzien added. So working with large chocolate companies, like Barry Callebaut, is important for Real Stevia to quickly gain market share.
http://thetimes-tribune.com/news/friendly-sons-to-host-domino-sugar-chief-1.2015446
Mar. 06, 2016; STAFF REPORT, thetimes-tribune.com Friendly Sons to host Domino Sugar chief A business executive will be the principal speaker at the upcoming dinner of the Friendly Sons of St. Patrick of Lackawanna County.
Brian O’Malley, president and CEO of Domino Sugar, will deliver the main remarks during the Friendly Sons 111th annual gathering on March 17 at Genettti Manor in Dickson City, said Christopher M. Kelly, president of the organization. Born in New York, Mr. O’Malley holds dual citizenship in the United States and Ireland. He has an undergratuate degree in business from Rowan University and a master’s degree of business administration in finance from Rutgers University. His career in the sugar business started in 1982 when he joined the accounting department of then- Amstar Corp., former parent of Domino Sugar. He was appointed president and CEO of Domino in 2001. Domino Foods Inc., which is based in Iselin, New Jersey, is the nation’s largest marketer of refined cane sugar under the Domino, C&H and Florida Crystals brands. Domino Foods is owned by Florida Crystals Corp. and the Sugar Cane Growers Cooperative of Florida. Mr. O’Malley has been active in leadership positions within trade association groups. He is a member of Legatus, an organization of Catholic CEOs, and serves on the board of Christian Brothers Academy in Lincroft, New Jersey. Mr. O’Malley resides in Middletown, New Jersey, with his wife, the former Maureen Flanagan, and their three children. The dinner will begin at 7 p.m., following a cocktail hour.
http://www.foodbusinessnews.net/articles/news_home/Business_News/2016/03/Southern_Minn_joins_National_S.aspx?ID ={1BFFDD4F-2C88-439B-8911-54D74AA1DFBE}&cck=1
3/7/2016 - by Ron Sterk, FOODBUSINESSNEWS.net Southern Minn. joins National Sugar Marketing WASHINGTON — National Sugar Marketing L.L.C. (N.S.M.) announced on March 4 the addition of Southern Minnesota Beet Sugar Cooperative (S.M.B.S.C.) as its newest member. About a week earlier, The Michigan Sugar Co. announced the purchase of AmCane Sugar L.L.C., a producer of specialty cane sugar products. S.M.B.S.C., based in Renville, Minn., is a grower cooperative with processing plants in Brawley, Calif., and Renville, and produces about 600,000 tons of refined sugar annually. “By joining N.S.M., Southern Minnesota will deliver their refined sugar to customers with the highest efficiency and the lowest cost to serve,” said Bill Smith, president and chief executive officer of N.S.M. “Adding S.M.B.S.C. as a member strengthens N.S.M.’s ability to serve the nation’s sugar supply needs on a very competitive and cost effective basis. This addition enhances N.S.M.’s position as a national supplier and greatly improves our ability to reach new markets.” N.S.M. was formed in 2012 as a jointly-owned marketing company by its two original members, The Amalgamated Sugar Co. L.L.C., based in Boise, Idaho, (grower-owned by The Snake River Sugar Co.) and Sucden Americas Corp., based in Miami, (a wholly-owned subsidiary of the Sucden Group). Amalgamated operates three beet sugar processing plants in Idaho and is the second largest beet sugar processor in the United States, producing more than 900,000 tons of refined sugar annually. Sucden Group, based in Paris, is a major sugar trading company with a world-wide presence of 8 million to 10 million tons traded annually. The Michigan Sugar Co., the third largest beet sugar producer in the United States, will expand into specialty cane sugar products with the announced purchase of AmCane Sugar L.L.C. The purchase, which includes AmCane’s refinery in Taylor, Mich., and packaging facility in Toledo, Ohio, is expected to increase Michigan Sugar’s sales volume by about 15% and revenue by more than $60 million. David Rosenzweig, AmCane chief executive officer, will remain through a two-year transition period, according to a Reuters’ report. AmCane currently is involved in litigation in the Court of International Trade over the 2014 trade agreement signed by the United States and Mexico.
http://www.beveragedaily.com/content/view/print/1228715
Mar 08, 2016; By RJ Whitehead, Beveragedaily.com
Scientists find way to make sweetest sweetener taste sweeter
Japanese researchers have devised a method to make one of the sweetest natural sweeteners even sweeter in a development that will be seen as a breakthrough at a time when consumers are moving away from sugar.
Researchers at Kyoto University believe they have done so by substituting acidic amino acids in thaumatin, a natural sugar substitute, with basic ones. Thaumatin, a protein derived from the fruit of Thaumatococcus daniellii Benth, an African tropical plant, is the sweetener of choice when it comes to diet beverages and gummy and jelly candies boasting natural ingredients.
"Making natural sweeteners stronger could be a huge plus to the food industry, especially as there are concerns regarding the consumption of low-calorie sugar substitutes to prevent lifestyle-related diseases," says lead author Tetsuya Masuda, whose work was published in Scientific Reports. Professor Masuda and colleagues analyzed the structure of thaumatin with X-rays to determine which parts of the protein made it taste sweet, finding that the basic amino acids in it played a crucial role in eliciting "sweetness", implying that substituting acidic amino acids with basic ones could make it sweeter. They found that thaumatin became 1.7 times sweeter than before when aspartic acid was replaced with asparagine. The findings also confirmed the complex interaction between thaumatin and the sweetness receptor of the tongue.
In the early 2000s, after years of speculation, it was found that sweetness could be detected when positively charged molecules on the protein come in the vicinity of negatively charged molecules on the sweetness receptor. "For a long time the mechanism in which we taste sweetness from thaumatin was a mystery, and for that reason it took very long to sweeten it up," said Prof. Masuda. "Now that we've taken steps in the right direction, I'm excited about developing applications for a stronger form of thaumatin.”
Source: Scientific Reports doi:10.1038/srep20255 "A Hypersweet Protein: Removal of the Specific Negative Charge at Asp21 Enhances Thaumatin Sweetness" Authors: Masuda, T. et al.
http://www.foodbusinessnews.net/Opinion/Ron%20Sterk/US%20sugar%20supplies%20finding%20equilibrium.aspx?&e=pe [email protected]&cck=1
3/8/2016; by Ron Sterk, FOODBUSINESSNEWS.net
Sugar supplies in the U.S. - finding equilibrium
Tight raw sugar supplies for some U.S. refiners and increasing demand for non-bioengineered sugar appeared to be two major threads of discussion at the recent International Sweetener Colloquium. The two issues are related and complicated.
The topic of raw cane sugar supplies for U.S. refiners was addressed in the Colloquium’s opening remarks by Michael Scuse, U.S. Department of Agriculture undersecretary for Farm and Foreign Agricultural Services, which oversees the U.S. sugar program. He said the 2014 managed trade agreement with Mexico had created market imbalances, which have led to challenges at the U.S.D.A. and in the sugar sector, including inadequate raw sugar supplies for U.S. cane refiners.
“U.S.D.A. needs to better understand the quantity and quality of sugar imported from Mexico,” Mr. Scuse said, adding that the U.S.D.A. was considering options to boost U.S. raw sugar imports, such as reallocating tariff-rate quota imports from countries unable to ship their quota to countries that have excess sugar. Under the U.S. sugar program, the U.S.D.A. cannot raise the T.R.Q. import quota until April 1 unless it’s determined an emergency situation exists. Reallocating imports doesn’t raise the quota and may help relieve the cane sugar supply stress, but Mr. Scuse also iterated the U.S.D.A.’s traditionally cautious approach to dealing with the T.R.Q.
The managed trade agreement referred to by Mr. Scuse is the Dec. 19, 2014, Agreement Suspending the Countervailing Duty Investigations on Sugar from Mexico, which was the result of petitions claiming harm filed by U.S. sugar producers. The agreement sets a floor price for exports of sugar from Mexico to the United States as well as specific shipment periods, the amount of refined sugar exports and a target quantity that maintains a U.S. ending stocks-to-use ratio of 13.5%.
It appears a larger-than-expected share of exports from Mexico, while not classified as refined sugar, have been going directly to end users and thus bypassing U.S. cane refiners. The potential for raw cane shortages was addressed early in the trade agreement negotiations by U.S. cane refiners, principally Louis Dreyfus Commodities’ Imperial Sugar Co., which currently, along with AmCane Sugar L.L.C., has a challenge to the agreement in the Court of International Trade. Imperial said as much as 500,000 tons of additional raw sugar are needed and has asked the U.S.D.A. to increase import quotas.
The situation is complicated by the fact there is no shortage of sugar in the United States because of ample supplies of beet sugar from a record 2015 crop. Under the sugar program, the U.S.D.A. is charged with maintaining adequate sugar supplies mainly through import adjustments at no cost to the U.S. government (i.e. avoid forfeitures against loans to processors). Trade sources suggested a reallocation may be likely but doubted the U.S.D.A. would raise the T.R.Q. because of the possibility of forfeitures that may result from excess beet sugar supplies.
Further complicating the issue has been increasing demand for non-bioengineered cane sugar over beet sugar, which is nearly all from bioengineered seed. While a broad debate continues over bioengineered labeling, The Hershey Co. last year made the issue real for the sugar industry when it announced it would move to all non-bioengineered cane sugar. While there hasn’t been a surge in companies following Hershey’s lead, it certainly is being considered by some users.
Conversations at the Colloquium indicated beet sugar producers estimated about 5% of their demand was at risk due to increased demand for non-bioengineered cane sugar. Some industry sources, especially on the West coast, have put the percentage far higher than that, but it remains an unknown. Some contend that if increased demand for cane sugar widens the price spread between cane and beet sugar to more than 2c a lb, demand for cane may subside.
The U.S.D.A. forecast domestic sugar production in 2015-16 would be 57% beet and 43% cane, but that at least 51% of total sugar supply in the United States will be non-bioengineered cane sugar (3,839,000 tons domestic production and 3,162,000 tons imported) and 36% would be domestic beet sugar, with the remaining 13% carryover stocks consisting of about the same percentages of beet and cane sugar. Domestic cane sugar output was forecast to decline 6% in 2016-17 in part due to the end of cane production in Hawaii after this year’s harvest.
“There are companies that are wanting to go to non-G.M.O. sugar,” Mr. Scuse said. “It is going to cause a problem going forward.”
Reuters pointed out that it was the first time the U.S.D.A. has publically expressed concern that increased demand for non-bioengineered sugar could contribute to tight supplies of cane sugar.
http://www.foodbusinessnews.net/articles/news_home/Business_News/2016/03/Sweeteners_The_next_generation.aspx?I D={866122AB-4DC3-45D2-8270-A0F50363F392}[email protected]&cck=1
3/8/2016; by Keith Nunes, FOODbusinessnews.net
Sweeteners: The next generation
The sweetener market may be ripe for further disruption. As regulators and public health officials continue to highlight the negative role the over consumption of caloric sweeteners may have on an individual’s health, ingredient manufacturers are developing alternatives that are true to the current trends driving the food and beverage market, most notably natural and clean label.
On the regulatory front, it remains to be seen what the Food and Drug Administration’s proposed changes to the Nutrition Facts Panel will be, but if the proposed listing of added sugars is adopted it may prompt some consumers to seek products featuring sweetener alternatives. That regulatory proposal combined with the revised 2015-2020 Dietary Guidelines for Americans issued by the U.S. Department of Health and Human Services and the U.S. Department of Agriculture in January that for the first time recommended added sugars not exceed 10% of daily calories consumed also may have an effect. Efforts to develop alternatives range from the creation of business platforms designed to match sweetener technologies with applications to the development of new sweeteners that may offer food and beverage processors alternatives.
One company that is focused on both is Ingredion, Inc., Westchester, Ill. During the Consumer Analyst Group of New York (CAGNY) conference, held Feb. 16-19 in Boca Raton, Fla., Jim Zallie, executive vice-president of global specialties and president of the Americas for the company, said sweetener innovation is an area of focus.
“We are looking at next-generation sweeteners,” he said Feb. 18, during the Ingredion CAGNY presentation. “And we are investing in sensory capabilities to understand sweetness so we can converse with our customers similar to how we converse today in the area of texture where we feel we have led the industry in regards to understanding textural descriptions.” Ingredion’s focus on textural descriptions led to the development of what the company calls Texicon, which is the lexicon of texture. The Texicon initiative was introduced in 2011, and is designed to translate the consumer texture experience into measurable scientific terms.
In a follow-up interview with Food Business News, Mr. Zallie said people think of Ingredion as a sweetening and texturizing company, but that most of the innovation has been focused on texturizers and specialty starches.
“Equally, we have a big sweetener business, with caloric and high intensity products,” he said. “We are looking at building out our sweetening system sensory capabilities. We see next gen products in that category.
“People are concerned about the pending labeling regulations around sugar and added sugars and having to call all of it out. That, along with the trend toward obesity, means some people want to move away and look at alternatives. They are looking at stevia and next gen products, and we are developing better tasting products that offer advantages for low- and no-cal functionality.”
Allulose as an alternative? In February 2015, Tate & Lyle P.L.C., London, introduced Dolcia Prima, a sweetener sourced from the rare sugar allulose. The ingredient has 90% fewer calories than regular sugar and is suitable for applications in such categories as baked goods, beverages and dairy.
“We’ve been working with a variety of manufacturers who are excited about the benefits Dolcia Prima holds for developing lower-calorie foods and beverages that still taste great,” said Abigail Storms, vice- president of platform management — sweeteners for Tate & Lyle. “We’ve seen strong interest across key segments and expect launches in the coming months.” The functionality of allulose is similar to other sugars, with the additional benefits of browning when baked, depressing the freezing point in products, and addition of bulk and texture to applications, according to Tate & Lyle.
“Dolcia Prima Allulose works in in synergy with certain high-potency sweeteners, such as Splenda sucralose and Tasteva stevia sweetener to enable even better sweetening systems,” said Luis Fernandez, senior vice-president of global applications for Tate & Lyle. “When using allulose in combination with sucralose or stevia, perceived sweetness is 10% to 40% higher than using the sweeteners alone.”
Matsutani America, Chicago, introduced its allulose-based sweetener called Astraea during the Institute of Food Technologists Annual Meeting and Food Expo last year. The ingredient is a monosaccharide, the simplest form of sugar and one of about 50 types that exist in small quantities in nature and as components of food, according to the company.
Yuma Tani, R.&D. deputy manager for Matsutani America, said that allulose may be a new ingredient to the marketplace, but research into it has been going on for years. “We started researching rare sugars in the ’90s,” he said. “There is a lot of science behind the sweetener.”
At issue has been production. As the name implies, rare sugars are not commonplace, but researchers at Kagawa University in Japan discovered a way to produce them from more common monosaccharides found in nature, allowing the university to partner with businesses for large-scale production.
Astraea is created using a process known as “Izumoring,” coined by Ken Izumori, Ph.D. When a monosaccharide reacts with a microbial enzyme, it causes the sugar to change from one type to another.
As with any new ingredient, Mr. Tani said manufacturers have many questions.
“Our presentations have gone well,” he said. “There is interest, but there are also concerns.”
One concern Mr. Tani mentioned is price. While he concedes allulose won’t be as cheap as high- fructose corn syrup, he did say its sweetness and functionality work well in applications where manufacturers are trying to offset issues caused by other ingredients.
“Beverages are one application, especially those beverages with stevia,” he said. “Allulose is a very good fit, because it masks the off flavor from the stevia. Allulose has a good masking ability when it is combined with other high intensity sweeteners. It matches up very well.”
What’s on the horizon? Researchers at Kyoto University in Japan say they have found a way to make thaumatin, a natural sugar substitute, even sweeter.
“Making natural sweeteners stronger could be a huge plus to the food industry, especially as there are concerns regarding the consumption of low-calorie sugar substitutes to prevent life style-related diseases,” said Tetsuya Masuda of Kyoto University, lead author of the study that shows that the sweetness of thaumatin may be improved.
Thaumatin is a protein derived from the fruit of an African tropical plant and is the sweetener of choice when it comes to “diet” beverages and gummy and jelly candies boasting natural ingredients. Thaumatin also masks bitterness and helps enhance flavor.
Interestingly, only humans and primates taste sweetness from thaumatin. Dr. Masuda and colleagues have analyzed its structure with X-rays to determine which parts of the protein make it taste sweet. From the studies they found that the basic amino acids in thaumatin play a role in eliciting “sweetness,” implying that substituting acidic amino acids with basic ones may make it sweeter.
In the study, Dr. Masuda replaced aspartic acid with asparagine, making thaumatin 1.7 times sweeter than before. This also confirms the complex interaction between thaumatin and the sweetness receptor of the tongue, which was discovered in the early 2000s after long speculation by scientists.
Sweetness is detected when positively charged molecules on the protein come in the vicinity of negatively charged molecules on the sweetness receptor.
“For a long time the mechanism in which we taste sweetness from thaumatin was a mystery, and for that reason it took very long to sweeten it up,” Dr. Masuda said. “Now that we’ve taken steps in the right direction, I’m excited about developing applications for a stronger form of thaumatin.”
http://www.candyusa.com/news/general-mills-doubling-organic-acreage-sourcing/ Mar 10, 2016; by Candy & Snack Today, CANDYUSA.com General Mills to increase sourcing for organic ingredients Minneapolis, MN — To support its goal of reaching $1 billion in sales for its natural and organic products by 2019, General Mills, Inc. has committed to more than doubling the organic acreage from which it sources ingredients, reaching 250,000 acres by 2019. Currently, General Mills is among the top five organic ingredient purchasers and second largest buyer of organic fruit and vegetables in the North American packaged food sector, the company claims. Further, its portfolio of organic and natural brands had pro forma net sales of $675 million during fiscal year 2015, making General Mills the third largest natural and organic food maker in the U.S. To help achieve its goals, General Mills has supported the Organic Farming Research Foundation’s efforts to encourage adoption of organic farming practices; invested $50,000 in the Prairie Organic Grain Initiative, a Canadian-based program; and participates in the Organic Trade Association’s Grain, Pulse and Oilseed Council, which is a pre-competitive industry forum working to increase the supply of organic grain, oilseeds and pulses.
Sugar & Sweeteners Outlook: March 2016 by Michael McConnell Sugar and Sweeteners Outlook No. (SSSM-331) 17 pp, March 2016 The Sugar and Sweeteners Outlook for March reviews the sugar and sweeteners market conditions for the United States and Mexico based on changes to the March World Agricultural Supply and Demand (WASDE). It also provides an analysis based on the long-term projections released by the USDA in February 2016. Keywords: Sugar, sugarcane, sugarbeets, trade, sugar imports, high corn fructose syrup, honey, Mexico, NAFTA, long-term projections In this publication...
Entire report 1,231 kb
http://www.agweek.com/crops/sugar-beets/3987075-cuban-raw-sugar-output-well-below-expectations
Mar 15, 2016; By Marc Frank, AGWEEK.com
Cuban raw sugar output well below expectations HAVANA - Cuban raw sugar production is more than 150,000 metric tons behind schedule as the harvest entered its final stretch, according to provincial media reports, as drought, unseasonable rain and organizational and technical problems weigh on output. AZCUBA, the state-run sugar monopoly, issued a statement over the weekend recognizing a "significant shortfall" from the planned amount to date, which it did not disclose, due to "atypical weather." It called on the industry to improve milling operations. AZCUBA scrapped output growth targets when the harvest began due to a severe drought last year but had still hoped to equal the 1.9 million metric tons produced during the 2014-2015 season. Now, reaching even that reduced goal appears impossible. The weather has improved since unseasonable rainfall in January set back harvesting of an already drought-stunted crop caused by the weather phenomena El Nino. Only around 15 percent of Cuban sugar plantations boast irrigation and adequate drainage. The harvest runs from late November through April, with cane usually yielding the highest sugarcontent from January through March. To date the yields of harvested cane have been well below the previous season, according to provincial media reports. Most mills will now remain open well into May when the rainy and hot season begins, lowering yields and making harvesting difficult. Only one of 49 mills grinding has reported output on schedule. Central Ciego de Avila province on Monday became the first in the country to reach 100,000 metric tons of sugar, the official Trabajadores newspaper reported. By comparison, last year, Villa Clara province topped 100,000 metric tons on February 17, 2015. The Ciego de Avila weekly Communist Party newspaper said the province remained 24,000 metric tons behind schedule. Villa Clara last reported it was 45,000 metric tons behind plan and various other areas have reported shortfalls of 20,000 metric tons or more, according to provincial media. There are 13 sugar-producing provinces in Cuba. Cuba consumes between 600,000 and 700,000 metric tons of sugar a year and has an agreement to sell China 400,000 metric tons annually. It sells the rest on the open market. Sugar was long Cuba's most important industry and export with output reaching 8 million metric tons in 1991, but today it ranks eighth in exports behind sectors such as tourism, tobacco, nickel and pharmaceuticals
http://www.reuters.com/article/us-usa-gmo-labeling-idUSKCN0WI2K2
Mar. 16, 2016; By Lisa Baertlein and Karl Plume, REUTERS Senate blocks bill that would override state GMO labeling laws The U.S. Senate on Wednesday blocked a bill that would nullify state and local efforts to require food makers to label products made with genetically modified organisms, or GMOs, as the industry races to stop Vermont's law from taking effect on July 1. The proposed legislation from Republican Senator Pat Roberts of Kansas comes amid growing calls for transparency in the U.S. food supply. Labeling advocates have criticized the bill as toothless because it leaves the decision to disclose GMO ingredients to the companies whose products contain them. Senate Bill 2609 is known as the Biotech Labeling Solutions Act by supporters and the Deny Americans the Right to Know, or DARK, Act by opponents. A procedural vote on Wednesday failed to reach the necessary 60 votes to advance the bill in the Senate, with 49 yes votes and 48 no votes. Roberts vowed to keep fighting as the July 1 deadline looms for Vermont's labeling requirement to take effect. "I remain at the ready to work on a solution," Roberts said. The United States is the world's largest market for foods made with genetically altered ingredients. Many popular processed foods are made with soybeans, corn and other biotech crops whose genetic traits have been manipulated, often to make them resistant to insects and pesticides. Major food, farm and biotech seed companies spent more than $100 million in the United States last year to battle labeling efforts, according to a lobbying disclosure analysis from the Environmental Working Group, which opposes the Senate measure. Opponents to GMO labeling efforts include trade groups such as the Grocery Manufacturers Association, whose members have included PepsiCo Inc and Kellogg Co, and BIO, which counts Monsanto Co, Dow AgroSciences, a unit of Dow Chemical Co, and other companies that sell seeds that produce GMO crops among its members. They say labeling would impose speech restrictions on food sellers, burden consumers with higher costs and create a patchwork of state GMO labeling policies that have "no basis in health, safety or science." But companies such as Whole Foods Market Inc, Chipotle Mexican Grill Inc and Campbell Soup Co already have begun labeling or abandoning GMOs rather than waiting for government action.
http://www.beveragedaily.com/Regulation-Safety/UK-government-shocks-with-sugar-tax- announcement/?utm_source=newsletter_daily&utm_medium=email&utm_campaign=17-Mar- 2016&c=nr4GVAI4KC0L9%2Bfhzk6Xv%2B4jK35Xjr5K&p2=
Mar 16, 2016; By Niamh Michail+, BeverageDaily.com
UK government shocks with sugar tax announcement
The British government has announced a tax on sugar-sweetened beverages, giving companies two years to reformulate.
Pure fruit juices and milk-based drinks will be excluded from the tax, which is expected to raise £520m (€662m) in funds. This will be used to fund sport in UK primary schools.
Finance minister George Osborne said the smallest producers will be kept out of the scope. Osborne told Parliament during his budget speech: “I am not prepared to look back at my time here in this Parliament, doing this job and say to my children’s generation: ‘I’m sorry. We knew there was a problem with sugary drinks. We knew it caused disease. But we ducked the difficult decisions and we did nothing. So today I can announce that we will introduce a new sugar levy on the soft drinks industry.”
Starting in two years time to allow time for firms to reformulate sugar out of their products, the tax will be determined by the volume of sugary drinks companies produce or import. There will be two bands, one for total sugar content above 5 g per 100 ml and a second band for the most sugary drinks with more than 8 g per 100 ml. “Of course, some [manufacturers] may choose to pass the price onto consumers and that will be their decision, and this would have an impact on consumption too," Osborne said. “We understand that tax affects behaviour. So let’s tax the things we want to reduce, not the things we want to encourage.”
Political theatre Reacting to the announcement, director general of the industry group Food and Drink Federation (FDF), Ian Wright, slammed the move as a “piece of political theatre. We are extremely disappointed by today's announcement of a new tax on some of the UK's most successful and innovative companies. For nearly a year we have waited for an holistic strategy to tackle obesity. What we've got today instead is a piece of political theatre. The imposition of this tax will, sadly, result in less innovation and product reformulation, and for some manufacturers is certain to cost jobs. Nor will it make a difference to obesity. Many of those singled out today by the Chancellor have been at the forefront of efforts to provide consumers with healthy choices. The industry will now ask whether such efforts are still affordable."
http://www.agweek.com/news/north-dakota/3989120-dont-fall-out-love-sugar
Mar 17, 2016; By Jonathan Knutson, AGWEEK.com
'Don't fall out of love with sugar' GRAND FORKS, N.D. — Sugar has been a huge part of David Berg's life. It's part of just about everyone's life, even though they may not realize it, he said. "Don't take sugar for granted," Berg said. Berg, CEO of American Crystal Sugar, a Moorhead-Minn. based cooperative, spoke March 17 at the 54th International Sugarbeet Institute in Grand Forks, N.D. The two-day event, which rotates annually between Grand Forks and Fargo, N.D., began March 16. An estimated 1,500 to 1,800 people and about 120 companies, exhibiting more than $5 million of products, participated. The Red River Valley of western Minnesota and eastern North Dakota is the nation’s leading sugar beet growing region, and the Institute sometimes is billed as the nation’s largest sugar beet trade show. American Crystal Sugar is the nation’s largest sugar producer. Most of its beets are grown in the Red River Valley. Berg has worked for American Crystal Sugar Co. since 1987 and has led the company since March 2007. He will be retiring at the end of August. The company recently named Tom Astrup as its new president, a post that Berg held in addition to being CEO. Berg remains in the latter role until he retires, when Astrup becomes CEO, too. Astrup was vice president of operations. Area sugar beet growers know Astrup and are confident in his leadership, said Duane Maatz, executive director of the Red River Valley Sugarbeet Growers, based in Fargo. Maatz attended the Sugarbeet Institute. Berg mentioned his retirement only briefly and in passing during his talk at the Sugarbeet Institute. He was asked to speak at the event because he's nearing retirement, and he decided to speak on the history of sugar because the subject has always interested him, he said. His talk began with the first recorded consumption of sugar in Asia 10,000 years ago, and examined how consumption eventually spread to Europe. He looked at sugar's role in the English Industrial Revolution and the slave trade, among other things. For centuries, sugar has had a deep impact on economic development and political events, he said. "Many governments recognize its availability is too important to leave to market forces," he said. "That's still very true today." Today, some people not directly involved in the sugar business "see our product as something that is almost trivial," though a broad historical perspective shows it's not, he said.
'Sugar is cheap' "Let's be honest,” Berg said. “Sugar is cheap. It's so cheap that consumers in nearly any country at almost any level of income can afford as much as they like to eat. While sugar consumption today varies from country to country, it's safe to say that sugar is available and affordable to essentially everyone on this entire planet." Sugar has become so common, even pervasive, that it’s sometimes taken for granted, he said. "We may have fallen out of love with sugar,” he said. “You might think to yourself, we've never been in love with sugar.” But sugar is a "unique and tremendous product," he said. "It tastes wonderful all by itself, and it makes almost any other product taste better. (And) it's very cheap." "Here's my takeaway: Don't take sugar for granted. Don't fall out of love with it.”
http://www.foodnavigator-usa.com/Suppliers2/Amazon-for-ingredients-New-e-commerce-platform-rolls-out-with- transparency-and-factory-direct-pricing/?utm_source=newsletter_daily&utm_medium=email&utm_campaign=23-Mar- 2016&c=nr4GVAI4KC1Wtj%2Bxv5cp1phrTiTeXAWE&p2=
Mar 23, 2016; By Stephen Daniells, FOODnavigator-usa.com
Amazon for ingredients: New e-commerce platform rolls out with transparency and factory-direct pricing
Ingredientsonline.com is promising to change the industry by allowing manufacturers in the US to purchase raw materials directly from overseas factories, providing considerable cost and time savings.
The company has invested in transparency, providing data on the origin of ingredients, and substantial QA/QC documentation and 24/7 real-time access to ingredient information, explained Peggy Jackson, VP of Sales and Marketing for ingredientsonline.com. Jackson, a 20 year industry veteran with over 15 years as the executive vice president of SupplySide, joined the company at the beginning of March, 2016. The platform had its soft launch in the spring of 2015, so has been up and running for almost a year, and as of today has nearly 2,000 registered users and offers about 330 different ingredients, said Jackson. “Our customer list is very diverse both in terms of the size of the companies registered and the categories they operate in. In addition to dietary supplements we do a lot in pet food and supplements, as well as with flavor companies buying sweeteners,” she said.
Ingredientsonline.com allows manufacturers to purchase quality raw materials directly from overseas factories, providing considerable cost and time savings, said the company. The platform is exclusively for manufacturers in the US currently, said Jackson, with product being shipped from their warehouses in California and New Jersey. The company is currently only working with factories in China, she said. “We have offices in China so it is easy for us to audit the factories there. We are also currently auditing factories in India, Ecuador and a few other places.” A team of auditors evaluates the factories, and products are tested in-house, said Jackson. Once the materials pass the audits and tests, they are sent to a third party lab in the US for additional testing. “Transparency is central to our platform,” said Jackson. “Nobody else has a website where you can see the price (we have tiered pricing). The QA/QC documents are all online and you just need to point and click and download them. We also show real-time inventory levels. And customers can know exactly which factory is supplying the ingredient.” The site also provides auto-bidding, online chat, and a choice of shipping options. The site mostly offers commodity ingredients, and no branded ingredients per se, she added. In addition to vitamins and minerals, they do have some specialty ingredients like CoQ10 and glucosamine.
Changing the industry? “This innovative online platform is truly amazing and will certainly change the industry,” said Jackson. “We have a tremendous opportunity to shape the future of how ingredients are purchased as manufacturers begin to realize the increased productivity in man hours and cost savings per ingredient this platform delivers. The long list of benefits for innovative companies looking for cost savings and production efficiencies is substantial.”
The company was founded by Sherry Wang, who has been active in the industry since the mid-90s. “Sherry has 20 years experiences working with FDA-regulated ingredients,” said Jackson. “Ordering high-quality nutritional raw materials from global factories wasn’t always easy,” said Wang in a press release. “Historically, the process was time-consuming, saddled with middle-men brokers and importer fees, rife with shipping delays and product availability concerns. But I knew that, with the right technology and the right connections, ordering raw materials from global factories could be as simple as ordering a book from Amazon”.
http://www.agweek.com/news/nation-and-world/3993095-green-pool-raises-global-sugar-deficit-forecasts
Mar 23, 2016; By Reuters Media, AGWEEK.com
Green Pool raises global sugar deficit forecasts LONDON - Green Pool on Wednesday widened its global sugar deficit forecasts for the 2015/16 and 2016/17 seasons to reflect diminished production prospects in Asia largely due to the impact of the El Nino weather phenomenon. The Australia-based analysts raised their 2015/16 deficit forecast to 6.65 million tonnes, raw value, up from a projection of 4.14 million issued in January. Green Pool also increased its forecast for a projected deficit in 2016/17 to 4.95 million tonnes from 4.17 million.
http://www.capitalpress.com/Idaho/20160324/first-amalgamated-grower-becomes-asga-president
March 24, 2016; by John O’Connell, Capital Press
First Amalgamated grower becomes ASGA president
NEW PLYMOUTH, Idaho — For the first time an Amalgamated Sugar Co. member occupies the American Sugarbeet Growers Association’s top post. Galen Lee, of New Plymouth, Idaho, is the first Amalgamated Sugar grower to serve as president of the American Sugarbeet Growers Association. He was sworn in for a two-year term as ASGA president in February, becoming the first Amalgamated grower to hold the position since the organization was formed in the mid-1970s. “It is a watershed event,” said Duane Grant, a Rupert, Idaho, grower who serves as chairman of the board of Snake River Sugar Co., which runs Amalgamated. ASGA, the industry’s political arm, serves 10,000 family farmers in 11 states, with a goal to “unite sugarbeet growers in the U.S. and promote the common interest of state and regional beet grower associations.” Lee’s schedule has been hectic in the weeks since he was nominated by a secret ballot and won the ASGA presidency uncontested. He’s consulted on issues frequently with ASGA Executive Vice President Luther Markwart and traveled throughout the country attending events. Lee, a fourth-generation farmer who raises beets, peppermint, asparagus, hay, grain, corn, beef and dairy on 1,200 acres in southwest Idaho, has been president of the Nyssa-Nampa Beet Growers Association for the past seven years and has served on the board for 17 years. He serves on Snake River Sugar’s board of directors, and he was vice president of ASGA before becoming its 21st president. “It’s a very talented group of board members — very progressive,” Lee said. Though Amalgamated is the No. 2 beet sugar producing company in the U.S., processing sugar for growers in Idaho, Oregon and Washington, Markwart said its never had a president due to scheduling challenges with growers in the Northwest, who use irrigation and have a harder time freeing their schedules to travel. Typically, Markwart said, Amalgamated growers have served ASGA as its treasurer, a position that doesn’t require them to leave home. “This has never been about the quality of people. Idaho has got as good a quality of people as anybody in the country,” Markwart said, describing Lee as “bright, articulate, thoughtful and a good listener.” Lee, who partners in farming with his parents, credits skilled employees with making the opportunity possible. Markwart said the only other ASGA president from the Northwest was the organization’s first president, Pete Funk, of Moses Lake, Wash., who wasn’t with Amalgamated. Markwart said ASGA members fly annually to Washington, D.C., to lobby Congress on a host of issues, including defending the nation’s no-cost sugar policy. Lee believes the top priority in the near future will be supporting passage of a voluntary, national standard for labeling of foods containing a genetically modified ingredient. Almost all U.S. beets are engineered to resist glyphosate herbicide, but Lee emphasized GMO protein and DNA is all removed during processing. Amalgamated President and CEO said Lee’s presidency is good for both the industry and Idaho. “It demonstrates in addition to growing good beets, we grow good leadership,” McCreedy said. “He’s going to be required to address some of the most pressing issues facing any agricultural industry.
http://www.confectionerynews.com/content/view/print/1237226
Mar 29, 2016; By Oliver Nieburg+, Confectionerynews.com
Cocoa’s future lies in Latin America, says Hardman Agribusiness
Future cocoa demand will be met by a thriving professionalized sector in Latin America as chocolate makers move away from a “structurally blighted” West African market, claims Hardman Agribusiness.
The organization – which recently published its report ‘Destruction by Chocolate’ – identifies at least $1bn earmarked for investment in Latin American cocoa in the next ten years.
Insatiable demand for cocoa It comes as global cocoa demand is expected to surge. Hardman Agribusiness says if cocoa consumption in China and India – respectively at 52 g and 36 g per capita annually today - reaches levels in Malaysia (around 500 g), the cocoa sector will need extra cocoa equivalent to another Côte D’Ivoire – the world’s top producer. According to the report, Latin America is best-placed to meet future demand. From 2000 to 2012, African cocoa yields expanded less than 7% despite 25% growth in the cultivated area, says Hardman’s report. Over the same period, the top seven producing countries in Americas together grew cocoa production by 73% despite only a 3% rise in harvested area.
Ecuador: Center of cocoa revolution Doug Hawkins, author of the report and head of the agricultural practice at Hardman, singled out Ecuador. “That will be epicenter of the cocoa revolution,” he says. Ecuador – which has overtaken Brazil as the Americas’ top cocoa producer – has pioneered the high-tech cocoa sector, says Hardman’s report. Large-scale plantations in the country have adopted smart irrigation systems and are aiming for yields at or above two metric tons (MT) per hectare of dry beans - almost triple the yields currently achieved in Africa (0.4-0.5 MT), it says. The report adds Ecuador benefits from highly experienced, professional cocoa plantation managers, government support and a cocoa heritage pre- dating the Spanish conquests.
Rise of premium chocolate The country is already the leader in fine flavor cocoa amid premiumization in the global chocolate market. Hawkins says there is a global “shift away from filled chocolate to high flavor providence chocolate”.
Retail sales of dark chocolate tablets have grown 31% globally since 2008 to reach $4.9bn in 2013, led by the European market, according to Euromonitor International. Hawkins says chocolate companies can expect to pay double the rate of bulk cocoa for Latin American beans, but he adds many firms are prepared to pay the premium. “The brands are desperately concerned about security of supply,” he says.
Excitement in Colombia Hawkins adds: “There’s real excitement about investment in Colombia,” after peace talks with guerilla group FARC. For example, agriculture group Andean Cacao has acquired land in the country and has started to develop the first 550 hectares of a 5,000 hectare project. It hopes to achieve over two metric tons per hectare.
Outdated cocoa sector ‘anything but sustainable’? Latin America optimism comes amid centuries of limited progress in global cocoa production, says Hawkins. “In this century alone we planted another 2.4m hectares of cocoa and the yield is still around 0.10 per hectare.” The report says this contrasts with oil palm yields that have grown globally by 33% in the first 13 years of this century. Hawkins says cocoa production is “anything but sustainable” and argues programs for African cocoa farmers have done little to lift a “bleak outlook” for West Africa’s cocoa industry.
Underlying issues in Africa Hardman’s report says Africa is held back from professionalizing its cocoa sector by cumbersome land ownership systems, preventing many small holders from owning land titles. The average age of cocoa farmers is also above or near typical life expectancy in the key producing countries. For example, the average age of an Ivorian cocoa farmer is 51, while life expectancy is 50.4. Hawkins says even when a West African farm is efficient it is “dogged” by developing national infrastructure, making it tough to bring the commodity to market.
Illegal plantations in Côte D’Ivoire "The increasing global demand of cocoa-related consumer goods is leading to the destruction of natural habitats across West Africa,” adds Ying-Heng Chen, senior Agri-economist at Hardman, who presented her company’s findings at the recent Cocoa Revolution conference in Vietnam. In her presentation, Chen called African cocoa production "inefficient”, “land hungry” and “unsustainable".
Ohio State University and Universite Felix Houphouet-Boigny published data in March 2015 suggesting 23 protected forest areas in the country have been converted for cocoa cultivation.
Hardman was unable to find reliable data on Côte D’Ivoire’s harvested cocoa area from beyond 2011 and suspects the planted area has grown. “Every time they want to increase production, they have to plant on more land – that’s not sustainable,” says Hawkins. The reports claims Côte D’Ivoire may struggle to top 0.6 MT per hectare annually.
Walking away from Africa? But will chocolate makers really turn their back on African cocoa farmers – many of whom live well below the poverty line. Hawkins says a shift to Latin American would be detrimental to African farmers, but adds cocoa in Africa is grueling work and many people moving to urban areas are pleased when they move out of agriculture. “That’s the way the world will go, if we like it or not,” he says, adding that chocolate brands are increasingly concerned about being tied to human rights abuses. The International Cocoa Organization (ICCO) forecasts the professional sector will grow from 5% of the world’s cocoa output today to 10% by 2020.
Industry reception One chocolate supplier attendee to the Cocoa Revolution conference called Hardman’s findings "controversial" and said comparing cocoa yields to palm oil was dangerous as the latter's expansion had been linked to deforestation. Mondelēz is among the biggest cocoa users in the world. Its cocoa sourcing manager for Asia, Roopak Bhat, said the world's joint-largest chocolate company planned eventually to source all its cocoa via its own Cocoa Life program. Cocoa Life is active in six cocoa growing countries: Côte d’Ivoire, Ghana, Indonesia, India, the Dominican Republic and Brazil. "From a commercial point of view, getting Latin American cocoa to other countries and to other regions is a little bit tricky for us because it’s got its own unique characteristics. …When we do a chocolate we will not be in position to use all Latin American beans because every product we make has specific origin requirements,” he said.