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“Competition in our
                                                                    “Quote”
                                                                    markets remained fierce
                                                                    Name, title, company See page XX
                                                                    with customers continuing
                                                                    to focus on price.”
                                                                    Piet Hein Merckens, chief executive officer, Wessanen
                                                                    The European organic market, P20-21




                                                                                                                            VOL. 39 No. No. 00 NOVEMBER 2011
                                                                                                                               VOL. 00 44 4 00 MONTH




Unsettling decline in processing
tomato output for main EU origins
GLOBAL TOMATO PRODUCTION -                                                      Production in Greece saw the            Portuguese source. “Growers [will
PRELIMINARY RESULTS (000 TONNES)                                            steepest decline within the bloc – a        be] coming to us in January and
                                      2009         2010           2011      staggering 48% to 330 000 tonnes.           saying we want more money than
                                                            Preliminary     However, a Greek processor told             that. “We could be negotiating the
 EU major producers                                                         FOODNEWS that he believed pro-              2012 crop with a situation that the
                                                                            duction would actually pick up              tomato planted in March/April will
 France                                215          198            191      again next year, in spite of the            be significantly lower than in
 Greece                                810          640            330      decoupled subsidies regime and              2011,” he added.
 Italy                                5747         5080           4950      the financial crisis gripping the
 Portugal                             1242         1280           1060
                                                                            country.                                    Mediterranean rebound
                                                                                This year the major factor dis-         Though the EU’s production this
 Spain                                2700         2375           2000      couraging tomato production was             year dropped so dramatically, it
                                                                            the effect of competitive crops,            failed to dent the overall picture for
                                         A
 SUBTOTAL                            10714         9573           8531
 Other AMITOM countries             D T
                                  D 400A
                                                                            mainly cotton and corn, but these           AMITOM (Mediterranean Interna-
                            240 OA
                                                                            were now less lucrative, he said.           tional Association of the Processing
                          WNL
 Algeria                                                           280          “Last year, whoever planted             Tomato) member countries, as Iran
                        DO 150
             K TO
 Egypt                              150                            150      tomato did quite well so there’s a                          CONTINUED ON PAGE 6


    CLIC
 Iran                      2400    1400                           1850      positive image [attached to
                                                                            tomato],” he added.
 Israel                     238     243                            220
                                                                                Within the EU, the only real                   IN THIS ISSUE
 Malta                                  12             9            10      surprise came from Italy, which
 Morocco                               160          172            172      turns out to have produced almost               Melamine crisis haunts
 Syria                                 150          160            160      the same amount as last year, at                China dairy industry   4
                                                                            4.95 million tonnes (-3%), though
 Tunisia                               750          850            850      previous indications suggested a                Chinese AJC prices settling
 Turkey                               1800         1280           1900      decline of around 10%. This was
                                                                                                                            at all-time high          8
 Ukraine                               340          280            420      attributed to good weather in Sep-
                                                                            tember and October and higher
 SUBTOTAL                             6240         4944           6012
                                                                            production from factories that do
                                                                                                                            Argentine grape must
 TOTAL AMITOM                        16954        14517          14543      not belong to the sector                        prices on the rise            9
 GLOBAL PRODUCTION                   42365        37323          37185      organisations.
SOURCE: AMITOM/WPTC
                                                                                                                            Alaska fights introduction
                                                                            Fruit prices                                    of GM salmon             12
BY EMMA SLAWINSKI                    tomato and had the lowest raw          With the market for industrial
                                     material price in Europe this          tomato still depressed, negotiations            Raw tuna prices high,
GLOBAL tomato production             season. This was expected to be        over next year’s raw material price             canned stocks low           13
has stayed roughly stable this       reflected in production similar to     are likely to be tough. Processors
year, according to the prelimi-      last year’s level, at roughly 1.2      have been struggling with poor                  US and Thai sweet corn
nary results published by the        million tonnes. In the event, bad      returns and difficulty in obtaining
World Processing Tomato              weather during the season pushed       finance, but farmers will expect                falling short          13
Council (WPTC) last week, but        output down by 17% year-on-            higher prices. If they do not get
the five main EU producers           year.                                  them, the result could be a further             Low crop takes toll on
have seen a significant – if             Spain’s production dropped by      drop in contracted acreage next                 Australian raisin growers 17
expected – reduction, of             a similar proportion (16%) to 2.0      year.
roughly 1.0 million tonnes.          million tonnes, while French              “The price has to go up to cover             Bunge upbeat despite
   Portugal is in its last year of   output declined by 4% to 191 000       2011 crop costs, from the point of              profits drop                22
coupled subsidies for processing     tonnes.                                view of growers,” said a


 Key Indicator          Argentine GJC    Spanish GJC                      Italian GJC                Find more key data in our on-line
                        exports     +50% exports     +46%                 exports     -26%           library at www.agra-net.com
 Snapshot               75 242 tns       85 977 tns                       64 340 tns
Editorial Comment

                                 A step too far
VOL. 39 No. 44 4 November 2011   ConsUmErs are being                  rice or vegetables, a dairy            “Five portions of fruit and
                                 nagged, no doubt about it. The       product (cheese or yogurt) and
                                 nanny state keeps a watchful         either a starter or pudding.           vegetables a day are now
      CONTENTS                   eye on what people eat, scold-           There is growing concern,         considered essential, while
                                 ing those who choose a high-fat      however, that these new rules are     carbohydrates and proteins
INDUSTRY NEWS                    meal chock-full of additives.        effectively imposing meat con-
                                 Five portions of fruit and veg-      sumption on pupils. The French          are dished out according
Sales value strong at            etables a day are now                vegetarian group L214 claimed                to some sort of food
Sanfilippo but volumes           considered essential, while car-     last week that the government         guidance pyramid system.”
fall                        3    bohydrates and proteins are          has made it clear that all sources
                                 dished out according to some         of protein should come from
FRUIT JUICE                      sort of food guidance pyramid        animal, not vegetable, products.      it is still tricky to get good vege-
                                 system. While some may argue         Isabelle Dudouet-Bercegeay,           tarian meals. The likelihood is
Pineapple juice in               there are advantages to such a       president of the French Vegetar-      that if you asked for a meat-free
doldrums despite Thai            policy, protecting the overall       ian Association, said: “It’s a case   lunch you would be given the
                                 well-being of a nation state,        of if you don’t want your child to    option of chicken. so why all this
floods                      7    others believe the authorities       eat meat, don’t use the canteen.”     fuss about the new rules?
                                 have gone too far.                       Chances are that if such a            Simply because people
CANNED FOODS                                                                                                deserve to have a choice. many
                                    Take the latest legal nutrition   ruling was introduced in the UK
                                 requirements for French school       there would be uproar, but school     people choose to follow a vege-
Thai pineapple canners
                                 canteens, for example. A law         meals in France are quite differ-     tarian or other dietary regimen
hold prices            11        passed on 3 october now forces       ent. The majority of French           for matters of taste or principle
                                 canteens feeding more than 80        children are happy meat eaters        or both. The authorities should
FRESH PRODUCE                    children to adhere to minimum        and frequently sit down to lunches    not forget that consumers do not
                                 nutritional requirements, outlin-    of rabbit, veal or cassoulet accom-   want to be told what they can
Belgium increases                ing how much protein, iron,          panied by charcuterie, much like      and cannot eat. Ensuring we
vegetable exports to             calcium and fresh fruit school       those in neighbouring Spain or        have easy access to general nutri-
France                     14    children must be given. meals        Germany. In fact, vegetarianism       tional guidance is welcomed, and
                                 must include a protein element       in France is still pretty rare at     helpful; prescribing what we
TOMATO PRODUCTS                  with accompaniment, such as          around 2% of the population and       must eat is not.

Tomato processors
mull impact of EU
agri-reforms               15
                                   MOST READ…                     Do you see FOODNEWS’ daily email alerts?
                                                                  See below the most clicked-on daily news stories this week:


DRIED FRUIT & NUTS                1.     Chinese AJC industry faces                     6.  Tomato soup goes orange
                                         catastrophic losses                            7.  Natural sweetener in beverage
US walnut prices firm in          2.     FCOJ futures market still wary of                  supplements
contrast to eastern                      storm Rina                                     8. Chinese AJC processors fear for
European                 16       3.     Panama’s pineapple exports up                      future as fruit prices soar
                                  4.     Lassonde raises loan to pay for                9. Magnetic tongue tests canned
FROZEN FOODS                             Clement Pappas                                     tomato flavour
Mushrooms and okra drive          5.     Americans underestimate                        10. Dole frozen fruit products launched
US frozen veg imports 18                 canned foods                                       in US

BUSINESS INTELLIGENCE            Contact us for your on-line password today call +44 (0)20 7017 4161
Organic giant Wessanen           or email online.access@informa.com
outlines future plans  20
                                  COMPANY INDEX                       FMC Corporation                 23 Parle Agro                          9
MERGERS & ACQUISITIONS            Ahold                          22 G. Willi-Food                     22 Pernod Ricard                       5
                                  Bunge                          22 Genesis Today                      3 PMK                               23
Coca-Cola buys bottling
company                 23        Campbell Soup                  15 H&T Walker                        13 Pulse Beverage Corporation          8
                                  Citrus Australia                5 Inventure Foods                   18 South Pole Biogroup               23
WEATHER WATCH
                                  Coca-Cola Company           5, 23   Jamba                            3 Sunrise                           16
Heavy rain and snow in US         De Cecco                       23 Jeronimo Martins                  22 UMII Products                       6
delay harvesting       24         Delamere Dairy                  3 John B. Sanfilippo & Son           3 Wakefern                          22
MARKET DATA                       Del Monte                      22 Lassonde                           5 Wegmans                           16
                                  Dole                           18 Natalie’s Orchid Island            3 Wessanen                       20-21
EU-27 juice import data 27


2           www.agra-net.com                                                                 © Informa UK Ltd 2011 - FOODNEWS® 4 November 2011
Industry News

Sanfilippo increases net sales                                                                                              News In Brief

value, but volumes still falling                                                                                        More outlets for 2011
                                                                                                                        JAmBA, the Us smoothie
                                                                                                                        chain, has announced that it
BY JENNIFER WILLIS-JONES                    “Due to higher acquisition costs     growing areas and the poor quality     now has a total (as of 4
                                        for most tree nuts that were pur-        of the 2010 crop carry-over stocks.    october) of 762 outlets
JoHn B. sanfilippo & son,               chased during the first quarter of       Consistent with what has appeared      around the world. All but 10
Inc, a processor, packager,             fiscal 2012, the weighted average        in recent articles regarding the       are in the Us, though Jamba
marketer and distributor of             cost per lb of raw nut input stocks      2011 peanut crop, we also believe      intends to expand abroad
dried fruit and nuts, has               on hand increased by 18.4% as of         that there is a possibility of a       and opened its first store in
announced that its net income           the end of the first quarter of fiscal   peanut shortage during the 2011        Toronto, Canada, on 28
for the first quarter of 2012 was       2012,” the announcement said.            crop year,” Sanfilippo stated.         October. It is also testing a
UsD2.4 million, compared with               Jeffrey T. Sanfilippo, chairman          “Under these conditions, being     new express service called
UsD1.1 million for the first            and chief executive officer of the       a peanut sheller can deliver mean-     JambaGO, with a limited
quarter of fiscal 2011.                 company, said: “Net income for the       ingful advantages. We leveraged        menu of the brand’s signa-
    The firm added that net sales       first quarter of fiscal 2012 more        our long-standing relationships        ture smoothies. Jamba’s
increased by USD10.0 million, or        than doubled in comparison to net        with our peanut farmers so that suf-   chief executive James White
6.8%, to USD156.8 million this          income for the previous year’s first     ficient peanut acreage was planted     said the company expects to
year from net sales of USD146.8         quarter primarily due to improved        to meet the majority of our peanut     have nearly 80 new outlets,
million last year. This increase can    alignment of sales prices and            requirements.        Additionally,     including JambaGO stores,
be attributed to higher selling         acquisition costs for most of the        because we entered into purchase       opened globally by the end of
prices generated by the company in      products that we sell, except for        contracts with our peanut farmers      2011.
the first quarter of fiscal 2011.       cashew products. Pricing actions         prior to planting in February and
    Sales prices increased for all      for cashews and products contain-        March and fixed our purchase costs     Now in the Big Apple
major product types due to “higher      ing cashews are anticipated to be        at that time, we were therefore able
                                                                                                                        GEnEsIs Today, a Texas-
commodity acquisition costs”.           completed in the second quarter of       to avoid a considerable portion of
                                                                                                                        based superfruit juice maker,
Sales volume, meanwhile, in the         fiscal 2012.                             the year-over-year peanut market
                                                                                                                        has partnered with Preferred
first quarter of fiscal 2012 fell by        “Unlike tree nuts, peanut market     price increase,” he explained.
                                                                                                                        Beverage Distributors to
6.8% in comparison with the previ-      prices for the 2011 crop have                “Consequently, we should be
                                                                                                                        introduce its superfruit juic-
ous year.                               increased over 100% in compari-          well positioned to meet our cus-
                                                                                                                        es in New York City. Genesis
    The total value of inventories on   son to peanut market prices for the      tomers’ peanut needs over the next
                                                                                                                        Today’s 10oz and 32oz
hand at the end of the first quarter    2010 crop. This remarkable               twelve months, assuming that the
                                                                                                                        superfruit juices including
of fiscal 2012 decreased by USD2.3      increase in peanut market prices is      negative impact of the drought
                                                                                                                        açaí berry juice, pomegran-
million, or 2.0%, while the volume      due to reduced acreage, reduced          conditions on crop quality and
                                                                                                                        ate/berries with resveratrol,
of raw nut input stocks decreased       yields caused by drought condi-          yield does not exceed what we are
                                                                                                                        cranberry/goji, and its Wake
by 22.0%, or 5.8 million lbs.           tions in the majority of the peanut      anticipating.”
                                                                                                                        me and relax me beverages,

Hong Kong office to help lift goats’ milk sales                                                                         are now available in
                                                                                                                        manhattan, Bronx, Queens
                                                                                                                        and Brooklyn, as well as
BY JENNIFER WILLIS-JONES                supermarkets, decided a base in          of powdered milk products and we
                                                                                                                        Staten Island, Nassau and
                                        Hong Kong would boost sales of its       believe there is an opportunity to
                                                                                                                        suffolk and Westchester
DELAmErE Dairy, a producer              UHT goat’s milk. Currently, 10% of       sell our UHT milk, which has a six-
                                                                                                                        counties.
of goat’s milk products in the          its revenues are generated through       month shelf life. We are hoping to
UK, has opened its first office         exports, with products already sold      make significant inroads into the
overseas to increase sales.             in Poland, Holland, Italy, the Czech     Asian market by having a base in       Industry moves
   The Cheshire-based company           Republic and the Middle East.            Hong Kong.”                            UmIT Guvenc, former
which produces and supplies goat’s          Liz Sutton, who founded the              Company turnover grew by 8%        chairman of the Turkish
milk, cheese, butter and yogurt, as     company 25 years ago with husband        to GBP15.2 million in 2010 and         Processed Fruit and
well as milk for pets under its         Roger, said: “There is demand. In        hopes are to reach revenues of         Vegetable Exporters
TopLife Formula brand to                China, for example, there are a lot      GBP16 million this year.               Council, has left Turkish
                                                                                                                        food manufacturer, Tamek,
 Brazilian juice maker quadruples functional juices sales                                                               and is seeking new opportu-
                                                                                                                        nities in the fruit and vegeta-
 BY VLADIMIR PEKIC                      hopes to increase sales to               cranberry with strawberry flavour      ble processing sector.
                                        BrL100 million by 2015.                  - is available in 1 litre and 200ml    Guvenc held the position of
 JUXX, a Brazilian producer of             Juxx was founded in late 2006         packages. Juxx juices do not           export sales director at
 functional juices, has reported a      by entrepreneur Edson Mazeto Jr.,        contain colourants, preservatives      Tamek, which produces fruit
 four-fold increase in sales in the     with a BRL2.0 million invest-            or artificial flavours and are pro-    juices and other preserved
 first half of 2011. The company        ment. The company’s first launch         duced from juice concentrates          foods, from 2009. Previously,
 sold 900 000 litres of juice in the    was cranberry juice, previously          imported from Chile.                   he worked for nearly 20
 first six months of the year,          available only as an imported                The company will launch six        years at Turkish conglomer-
 while earnings reached BrL6.0          product in Brazil.                       new projects before the end of         ate, Koc Holding at its agri-
 million (UsD3.5 million) in the           The entire Juxx product line –        2012 when it expects to double         business branch, Tat.
 same period. The company               cranberry, plum, pomegranate,            sales compared with 2011.


 Key Indicator            PJC price                 Chinese AJC              Polish AJC                 Find more key data in our on-line
                          USD1 750/tn +3%           USD2200/tn +5%           EUR1.52/kg +12%            library at www.agra-net.com
 Snapshot                 Weds close                Weds close               Weds close
Industry News


Spectre of melamine fraud still
haunts Chinese dairy industry
BY NEIL MURRAY                          verification and were delisted from    CHINESE WMP PRODUCTION, DISTRIBUTION (’000 TONNES)
                                        production. These local processors
CHInA’s total milk produc-              generally collected raw milk from                                            2010            2011           2012f
tion will grow by 5% in 2012            small or backyard operators and
                                                                                                                      TA 85
                                                                                                                D DA 1200
                                                                                Beginning stocks                   80 110
to 33.4 million tonnes, accord-         their insolvency has pushed some
                                                                                                              OA 396
                                                                                                        WNL
                                                                                Production                       11001030
ing to the latest report from the       backyard operators to slaughter
UsDA. Almost all of this (32.2          dairy cows in 2011. Although                                   O
                                                                                                     OD
                                                                                Imports                   326            450

                                                                                              KT
million tonnes) will be cow             larger operators are taking what        Total supply             1466    1576   1735

                                                                                    CLIC
milk.                                   could be a risk to expand herd size,
                                                                                Domestic consumption     1386    1491   1685
    Recently, China’s National Sta-     the pace of increase in dairy cows
tistics Bureau (NSB) announced a        is constrained by land resources.       Ending stocks                          80              85              50
new official figure for cow milk            China’s skim milk powder            Total distribution                   1466            1576            1735
production in 2010 of 35.8 million      (SMP) production in 2012 is fore-      Source: USDA
tonnes. The USDA, however,              cast to recover 2% to 57 000 tonnes
believes it will take longer than       following another 2% recovery the      China’s liquid milk exports in        while increasing the bacterial
expected for China to fully recover     previous year, the result of greater   2012 will recover 12% to 27 000       colony maximum requirement
from herd losses following the          local demand for infant and func-      tonnes, following a 14% recovery      from 500 000/millilitre to 2.0
melamine crisis of 2008. Chinese        tional formula. Meanwhile,             the previous year, the result of      million/ml. These factors have
producers are slowly rebuilding         China’s whole milk powder              demand from Hong Kong. WMP            lowered processor confidence,
the country’s dairy herd following      (WMP) production in 2012 will          exports in 2012 are forecast at       with some manufacturers and
the melamine crisis in 2008 when        rise 9% to 1.2 million tonnes,         11 000 tonnes, a 22% rise follow-     resulted in shifts of entire product
15% of China’s dairy cows were          based on a 7% increase the previ-      ing estimated double sales in 2011.   lines to imported ingredients. This
taken out of production due to          ous year. It has taken Chinese         This forecast has WMP exports         strong demand for alternatives to
weak demand after the melamine          WMP production more than three         approaching pre-melamine crisis       local supply will result in a signifi-
scare. However, recovery is slow        years to fully recover from the        levels of 2008.                       cant increase in dairy imports in
and raw milk output in 2011 and         impact of the melamine crisis in           Inner Mongolia continues to be    2011, especially dairy powder,
2012 will probably remain below         2008.                                  the largest production area for       and China’s dairy industry antici-
the pre-melamine levels.                    Higher domestic demand for         liquid milk products in China, and    pates a continued increase in
    Although year-on-year raw           dairy products, combined with          is expected to account for 19% of     2012.
milk prices only increased 3%,          lower tariffs on dairy products        total industry revenue in 2011. The       Overall, milk powder demand
prices have climbed 27% from            from New Zealand (China’s largest      province also has the largest         will be particularly strong from
USD407 per tonne in July 2009 to        supplier), policy changes that         numbers of dairy cows on hand.        large-sized processing companies,
USD515/tonne in July 2011.              reduced the VAT on pasteurised         The largest production bases of       such as Inner Mongolia-based Yili
Encouraged by higher milk prices        and UHT milk to 13% in July from       major firms Mengniu and Yili are      and Mengniu, which offer con-
in China, operators are increasing      17%, and a stronger yuan against       also located in Inner Mongolia.       sumers a superior safety profile
imports of breeding dairy cows for      the US dollar will drive China’s           While higher prices and strong    over smaller companies. Improved
genetic improvement, which are          imports in 2012, predicts the          long-term prospects for China’s       WMP exports will also encourage
expected to approach 90 000 head        USDA. Liquid milk imports are          dairy demand are driving produc-      production gains in 2011 and
in 2011.                                forecast to rise 21% to 40 000         tion gains, raw milk output growth    2012.
    However, the pace of increase       tonnes. SMP imports are forecast       may continue to be dampened by
in dairy cow beginning stocks in        at 140 000 tonnes, a 16% year-on-      consumer safety concerns over         Consumption
2012 is forecast slightly slower        year increase. The USDA forecasts      local milk as a result of repeated    Consumption of milk, cheese,
than in the previous year due to        the US will be China’s second          melamine detections. In late 2010,    yogurt and other dairy products
continued withdrawal of backyard        largest supplier in 2012, account-     the Chinese government seized         differs across regions and particu-
operations, which still account for     ing for 16% of total imports.          over 2 000 tonnes of melamine-        larly in urban versus rural areas.
an overwhelming majority of                 China’s WMP imports are fore-      tainted milk powder during a          Regions with lower per capita
China’s dairy herd production.          cast to grow 14% in 2012 to            six-month crackdown. All the milk     incomes have lower consumption
Although the 2010 and 2011 offi-        450 000 tonne, due to strong           powder was allegedly left over        levels. Rural areas have the lowest
cial data is not yet available, the     demand for bulk supplies for           from the 2008 melamine crisis and     per capita consumption of these
USDA believes the withdrawal            further processing or food process-    should have been destroyed. Pro-      products, even though the rural
speed of backyard producers will        ing. Whey is China’s second            ducers ignored the national           population accounts for about
be much faster, following China’s       largest imported dairy product and     regulation to destroy tainted milk    60% of China’s total population.
new requirement for all processing      imports are estimated at about         powder, holding onto product for      Improvements in living standards
plants to reapply for verification of   288 000 tonnes, worth USD443           sale after the crisis died down.      and consumption ideas in rural
processing qualifications and re-       million in 2011. Higher sales are          China’s newest dairy standard     areas will contribute to higher
obtain processing permits by the        expected in 2012, driven by strong     was implemented on 1 June 2010,       market demand in the future, but
end of March 2011. Given that the       demand for infant formula, food        and lower raw milk minimum            urban populations will likely
new requirement is much stricter,       processing, and feed production.       protein requirement from 2.95         remain the main consumers of
many small plants did not pass the          The USDA forecasts that            grams per 100 grams to 2.8g/100g,                      Continued on page 5


 Key Indicator             Spanish GJC exp Spanish GJC value Argentine GJC exp                       Find more key data in our on-line
                           85 977 tns +46% USD1 336/tn +10.8% 75 242 tns +50.6%                      library at www.agra-net.com
 Snapshot
Industry News

Continued from page 4
dairy products. Despite the overall
                                       years to come. The highest earning
                                       Chinese are not price-sensitive,
                                                                               market. US exports over the same
                                                                               period more than doubled at 4 199
                                                                                                                            News In Brief
increase in dairy consumption in       and figures indicate they consume       tonnes, valued at USD18.4 million,
China, consumer confidence in          the bulk of imported liquid milk.       23% of China’s market. Cheaper
                                                                                                                         All-Aussie juices
domestic dairy products has not yet    Some middle-class consumers             US cheese, as a result of the stron-      FrUIT juice made from
recovered owing to the seemingly       switch between domestic brand           ger Chinese currency, has made it a       100% Australian fruit will
constant reports of melamine           liquid milk and imported milk           competitive choice, challenging           be proudly labelled as such
detections. Foreign suppliers          based on price sensitivity, while       Australia exports to China. China         before the end of the year,
aggressively tapped into the market    most urban consumers prefer pas-        also imports cheese from France,          according to ABC rural in
and the term ‘imported’ has become     teurised or UHT milk in carton          Italy, and Denmark. An important          Australia. The chief execu-
almost a guarantee of food safety      boxes or plastic bags available in      change to note is that in 2010, local     tive of Citrus Australia,
or at least ‘free of melamine’.        supermarkets or packed in bottles       dairy manufacturers began to use          Judith Damiani, says the
   Dairy product consumption           for home delivery. Dairy bars in        US bulk cheese for processed              new labels will mean con-
gains are mainly the result of         the streets in large cities owned by    cheese production, a first for China.     sumers will not have to read
rapidly rising interest in dairy       brand companies, such as Sanyuan            The gap between China’s per           the fine print to know their
products in tandem with higher         in Beijing, are gaining popularity      capita consumption and the average        juice is Australian. Growers
disposable incomes, increasing         among younger generations, which        per capita consumption of over            say current labels are mis-
health consciousness among the         mainly sell fresh milk.                 200kg in developed countries              leading and can make it dif-
growing middle class, and expand-         Almost all the cheese available      further illustrates the growth poten-     ficult to find genuine
ing retail outlets. Although the       in China’s market is imported and       tial of China’s dairy market, says        Australian juice. “made in
dairy market sustained a high rate     processed. New Zealand is the           the USDA. It also explains why            Australia” is a term fre-
of growth during the past decade,      largest cheese exporter to China.       China’s dairy market, facing so           quently used by juice manu-
per capita consumption of dairy        From January-August 2011, New           many challenges, has the potential        facturers, and refers to juic-
products in China, especially in       Zealand exports to China rose 14%       to bounce back quickly after              es made with imported raw
rural areas, is still very low, sug-   to 8 344 tonnes, worth USD36.2          serious setbacks and still show           material (fruit or concen-
gesting the potential for continued    million and accounting for 41% of       considerable potential for future         trates) plus a percentage of
strong demand gains for many           China’s total imported cheese           development.                              Australian product.


Peru/Thailand FTA comes into force in 2012                                                                               Juice purchase funding
                                                                                                                         LAssonDE, the Canadian
BY JENNIFER WILLIS-JONES               been approved in Thailand by the        give its government permission to         fruit juice company that
                                       Lower Chamber in Congress and           start negotiations with Peru con-         recently bought Us juice
A TrADE agreement signed               will now be voted on in the Upper       cerning a Free Trade Agreement            manufacturer Clement
between Peru and Thailand              Chamber in the next few weeks.          (FTA).                                    Pappas and Co
will come into effect from                 “Once it is approved by the             “In parallel, we will start nego-     (FOODNEWS 24 June), has
January 2012, Peru’s vice min-         Thai senate, Peru’s Ministry for        tiations to convert the protocol into     raised CAD15 million in
ister for Foreign Trade, Carlos        Foreign Trade and Tourism               an FTA and, even if we do not have        additional financing from
Posada, has announced. The             (Mincetur) will publish a supreme       a start date for these negotiations, it   two Canadian banks to
protocol will eliminate duties         decree that will fix the date for the   will probably be in the middle of         cover the acquisition.
for up to three-quarters of            protocol to come into force, which      next year,” he said.                      Lassonde had earlier
goods shipped between the two          is expected to be 1 January of next         Products such as squid, grapes,       announced a rights issue to
countries.                             year,” Posada continued.                mango, avocado, asparagus, citrus         pay for the purchase
   Peru’s Ministry of Foreign              Furthermore, he said, the Thai      fruit, onions and fishmeal are            (FOODNEWS 29 July).
Affairs has ratified the Early         Upper Chamber of Congress will          thought to be the main beneficia-         Lassonde paid UsD390 mil-
Harvest Protocol, while it has just    not only ratify the protocol but will   ries of the agreement.                    lion for Pappas in its big-
                                                                                                                         gest-ever takeover. It now
Chocolate tequila launched in South Africa                                                                               owns 71% of Pappas while
                                                                                                                         the founding Pappas family
                                          BY JENNIFER WILLIS-JONES                                                       retains 19% and the
                                                                                                                         Lassonde family 10%.
                                          PErnoD ricard is to roll out a dark chocolate variant of its
                                          olmeca Fusión tequila range in south Africa following a suc-                   Cappy launched in India
                                          cessful test launch in Greece and Austria. It is hoped the
                                          premium Tequila-based liqueur with an ABV of 35% will                          COCA-Cola Company
                                          attract new consumers to the category.                                         announced the official
                                             Olivier Fages, international vice president for Olmeca, said:               launch of its Cappy fruit
                                          “While bartenders across the globe are really embracing Tequila with           juice in Egypt. Cappy
                                          innovative and exciting cocktails, there is still huge scope to grow the       already exists in other coun-
                                          other side of the category, by recruiting young, adventurous                   tries around the world
                                          consumers.                                                                     under the name of minute
                                             “The Olmeca Fusión range, which has a lower ABV than our                    maid and Cappy selectii.
                                          original Tequila, currently boasts two variants, each inspired by the          The company has invested
                                          delicious flavours of Mexico – dark chocolate and hibiscus. We                 more than EGP100 million
                                          are confident that this vibrant, refreshing range will be huge success         (UsD16.6 million) in the
                                          for us, and look forward to monitoring its development in South                production of the new 100%
                                          Africa.”                                                                       juice product.


 Key Indicator           EU27 imports Brazil EU27 imports US  EU27 imports Costa                       Find more key data in our on-line
                         NFCOJ       +2% NFCOJ           +41% Rica NFCOJ +56%                          library at www.agra-net.com
 Snapshot                360 563 tns         73 291 tns       5 698 tns
Industry News

   News In Brief                Revamped juice regulations for
Australian mangoes
THE UsDA has given the
green light for imports of
                                Spain due to win EU approval
Australian mangoes under        BY JENNIFER WILLIS-JONES               legally state they ‘contain no added    must be labelled as ‘orange and
an irradiation protocol. It                                            sugars’.                                mandarin Juice’.
has opened the matter for       THE spanish Fruit Juice Asso-          • Voluntary addition of aromas to           The final set of regulations will
public comment, until 27        ciation       (Asozumos)        has    both freshly squeezed and from          be presented at the next COREPER
December. This follows a        announced that new rules regu-         concentrate juices is permitted in      meeting in Brussels for its approval
recommendation from the         lating       production         and    order to prevent additional costs on    by EU member states, followed by
UsDA’s Animal and Plant         marketing of juices and nectars        products or other adulterations.        approval by the European Parlia-
Health Inspection service       will come into force in the            • Fruits which have been treated        ment in December.
(APHIs) they be allowed         country within a year.                 post-harvesting that can be con-            The president of Asozumos,
entry. The proposed proto-          The organisation has been          sumed as fresh can be used for          Óscar Hernández, said “the asso-
col also includes fungus        working on the regulations along       making juice, according to interna-     ciation, following the instructions
management procedures.          with the European Fruit Juice and      tional regulations.                     of the advisory council, has carried
“As a condition of entry,       Nectars Association (AIJN) since       • Tomato will now be included as a      out a good job and has achieved
the mangoes would have to       December 2006, simplifying and         fruit (with the possibility of adding   practically everything that was
be produced in accordance       updating international rules on        salt and spices), which will give       asked”.
with a systems approach         juice production.                      legal recognition to tomato juice in        He added: “The successful
employing a combination             The rules will now be as           the EU.                                 outcome is the result of a job well
of mitigation measures for      follows:                               • Juices from concentrate can now       done by our association, and the
the fungus Cytosphaera          • An absolute distinction is made      be obtained from dehydrated fruits      fact that there was a Spanish
mangiferae and would have       between products, with juices          following certain guidelines.           speaker in the European Parlia-
to be inspected prior to        clearly labelled either freshly        • In the interests of commerce,         ment meant we were quickly made
exportation from Australia      squeezed or from concentrate.          regulations governing brix content      direct partners with the European
and found free of this dis-     • The addition of sugar to fruit       have been changed. Guava, mango,        Parliament to meet all the demands.
ease,” the statement said.      juice sold in Europe is absolutely     passion fruit and redcurrant juices     Nationally, we have also worked
If all goes well, the market    prohibited. As a result, EU legisla-   can now have a slightly lower brix      very hard with the Ministry of
could be open to Australia      tion is more precise and stricter      content than before.                    Environment and Rural and Marine
before the end of the cur-      than international laws, better pro-   • Labelling requirements for mixed      Affairs, transferring their demands
rent season, which runs         tecting consumer interests.            fruit juices have been simplified,      to Brussels.
through to around march.        • Up to 18 months after the new        with fruit listed in order of impor-        “The approved regulations have
                                regulations come into force, fruit     tance in the drink.                     taken into account current produc-
Natural sweetener deal          juice may still be labelled as ‘not    • The use of ‘no added sugars’ on       tion of juices and nectars, covering
UmII Products has signed        containing any added sugars’ so        nectar labels has been defined.         all the legal requirements in food
a three-year agreement          that it does not suffer from a com-    • Orange juice cannot be labelled       safety issues including some tech-
with Tate & Lyle for the        parative disadvantage to similar       as such if 10% of mandarin juice is     nical aspects that needed to be
usage of Tate & Lyle’s          drinks such as nectars which can       added to the juice. In this case, it    improved.”
Purefruit monk Fruit
Extract in its all natural
                                CONTINUED FROM PAGE 1                  a large concentration of tomato            As southern hemisphere pro-
U-line of zero-calorie bev-
erage supplements. The          and Turkey saw a strong recov-         deliveries in the late harvest          ducers move towards their new
agreement also allows Umii      ery in production after very poor      period, which commands extra            season, the first production fore-
to use the consumer-friend-     harvests last year, to 1.85 million    premiums on top of the base level       casts for the major south
ly ‘Sweetened with              tonnes (+32%) and 1.9 million          of UsD68 per ton set this year.         American producers were also
PUrEFrUIT™ monk                 tonnes (+48%) respectively.               In addition, brix levels overall     revealed by the WPTC.
Fruit Extract’ trademark        These helped to bring production       were lower than expected, the              Chile is set to produce 700 000
on its product packaging.       in the area back to last year’s        source said, particularly affect-       tonnes, 94 000 tonnes less than
monk fruit, also known as       level, at 14.54 million tonnes.        ing production of tomato paste,         last year’s total, while Argenti-
luo han guo, is native to          California, meanwhile, has          which as a high-brix product            na’s output is pegged at 400 000
south-east Asia where it has    had slightly lower production          then requires a greater volume of       tonnes, up from 355 000 tonnes
been in use for hundreds of     than expected. rains waylaid           raw material to achieve the same        last year.
years. Its pulp is steeped in   harvesting in early october, and       final volume.                              Brazil, the largest producer in
hot water to release a natu-    as of 29 october 11.96 million            China’s final production is          the region, is headed for 1.5
ral, calorie-free sweetening    (short) tons of tomato had been        put at 6.79 million tonnes, slightly    million tonnes, 90 000 tonnes less
ingredient that is around       delivered to processors, accord-       higher than indications given in        than last year.
200 times sweeter than          ing to the California Processing       early october, and 9% above last           Australia, whose crop last
sugar. The extract can be       Tomato Advisory Board, with            year’s.                                 year was devastated by flooding
formulated into a variety of    very little (if any) expected to be       overall, at this estimate global     and only reached 87 000 tonnes,
foods including beverages,      delivered thereafter.                  production stands at 37.19              is expected to have 245 000
dairy, cereals, confectionery      According to one processor in       million tonnes, a reduction of less     tonnes, bringing it almost back
and bakery products.            the state, production costs will       than 1% compared with last              up the 2010 level, of 265 000
                                work out higher this year due to       year’s 37.32 million tonnes.            tonnes.


Key Indicator        Raw tuna              Raw pineapple       Cali peach trees               Find more key data in our on-line
                     USD1 850/tn -12%      USD0.14/kilo -6.25% Bearing       -3.2%            library at www.agra-net.com
Snapshot                                                       acres: 22 314
Fruit Juice


Pineapple juice market stays in
the doldrums despite Thai floods
BY NEIL MURRAY                          PINEAPPLE JUICE CONCENTRATE PRICE 2005-11 (USD/TONNE FOB)

ALONG with the canned pine-
apple sector (see page 11), the
                                                                                    A
                                                                                 DAT
Thai pineapple juice concen-

                                                                              AD
trate (the two commodities are                            Source: FOODNEWS


                                                                           NLO
frequently produced by single

                                                                        DOW
processors) market is in a state

                                                                     TO
of turmoil due to the extensive

                                                                 ICK
flooding in the country.
    After a few years of inclement
weather (be it droughts or floods)                             CL
and consequent low production,
Thai PJC had risen to well over
USD2 000 per tonne. In recent
months, the price has been falling,
due to a better harvest this year and
generally lacklustre demand for         cans float, and FOODNEWS has             fruit is reported to be of rather low demand, uncertainty over the reli-
the product, but in the last week       received a vivid description of a        ratio at 16-22. In contrast, Brazil- ability of shipments, and
prices have taken a slight lurch        bottling plant with a sea of drinks      ian pineapple is presently reported uncertainty over whether Thai-
(about USD50) upwards to                cans bobbing around in the waters.       to be of extremely high ratio land’s processors can continue
USD1 750 per tonne fob, accord-             “Can and packaging material          (24-32) which means it may be in producing PJC. Consumers are
ing to buyers in Europe and             supply is a big risk now for all         strong demand for blending.           also cutting back on some foods
USD1 850+/tonne, according to a         packers,” confirmed a processor.             Overall, the real reason for the and drinks that they deem inessen-
processor in the country, who           “We are 30% short in loading for         7039 RHODES FRUIT EXPORT be FA 4/19/11pineapplePage 1seems to
                                                                                 lacklustre market seems to AD tial, and 1:29 PM juice
added that South Korea was con-         this month, which is roughly 150         uncertainty: uncertainty as to fall into M Y category. CY CMY K
                                                                                                                           C
                                                                                                                                this CM MY
tracting at USD1 950/tonne.             full containerloads (fcls). We have
    The real problem is not so          a delay of two weeks. In the first
much the harvest nor the produc-        week of November, we are sup-
tion of PJC, as the fields and          posed to load 125 fcls but we can
processing plants have escaped the      load only nine fcls. All these inter-
worst of Thailand’s flooding, but       ruptions are because the tinplate
the infrastructure. There has been      and drum factories got flooded in a
some damage to plantations in the       bad way, and we have to pay
north of the country, but the south
has not been damaged.
    Road travel is still difficult or
                                        nearly 5% more to maintain cus-
                                        tomer service levels.”                           Dedicated to delight
impossible in some regions, and         Port delays                                      At Rhodes Food Group we take great pride in producing a wide
staff whose villages and towns          Further adding to the infrastructure             range of high-quality citrus fruit, pineapple and South African
have been flooded are at home,          problems, the port of Bangkok is                 deciduous fruit. Our range is available in cans, plastic cups
trying to sort things out (in much      reported to be suffering badly from                                           and industrial juice concentrates
the same way as Chile suffered a        the flooding, causing delays to
labour shortage immediately after       shipments. If there is one positive                                              & purees. These quality products
its earthquake last year).              aspect to the flooding, it may be                                                 are appreciated by a broad
    As with steel cans, makers of       that the waters have washed the                                                          range of customers in the
drums for packing PJC have              excessive nitrates out of the soil in                                                      food service sector,
watched as their factories flooded,     the north of the country. That there                                                         industrial supply
and have asked processors to take       is still PJC with excessive nitrate
                                                                                                                                        arena, as well as
delivery of their drums immedi-         content is likely, and any extremely
ately, if only because they can         cheap product should be tested.                                                                  the global retail
provide somewhere dry to store              One buyer reported being                                                                     market.
them. FOODNEWS understands              offered PJC at USD1 450/tonne,
that the juice processers are quite     only to discover that it had a nitrate
happy with this arrangement.            level of 50 parts per million: twice
    One source said that there was      the AIJN level, although the AIJN
still a steel drum plant in operation   recommends 15ppm as a more
in the country, so the problem of       suitable upper limit. Precisely the
packaging is probably not as            same thing happened last year
serious as it is for canners.           (FOODNEWS 10 December                                                   RHODES FOOD GROUP (PTY) LTD, PNIEL ROAD,
                                                                                                                  GROOT DRAKENSTEIN, 7680, SOUTH AFRICA
However, Thailand’s beverage            2010).                                                                                    TEL: +27 (0)21 870 4000
industry has been badly affected,           In addition, because the harvest                                                   www.rhodesfoodgroup.com
not least because empty beverage        started rather early this year, the

© Informa UK Ltd 2011 - FOODNEWS® 4 November 2011                                                                        www.agra-net.com                    7
                                                                                 Composite
Fruit Juice


Chinese AJC prices starting to
settle but at all-time high level
BY NEIL MURRAY                           CHINESE AJC PRICE (USD/TONNE, FOB)

THE Chinese AJC situation
remains extremely fluid,
changing from day to day, but
one thing remains: the product

                                                                                  TA
is extremely expensive, where

                                                                              D DA
                                                           SOURCE: FOODNEWS

it can be found, and will not be
                                                                             A
                                                                          NLO
falling in price in the foresee-

                                                                        OW
able future.

                                                                      OD
    In addition, European and other
                                                                     T
                                                                LICK
producers are putting up their

                                                               C
prices, though whether this is
because of higher fruit prices or
because they are simply capitalis-
ing on the woeful supply situation
from China is harder to judge.
    The swift break-up of the
Chinese processors’ attempt to
dictate the apple price (FOOD-           and clients from Israel who need         have come stories of renegotiated        switch to grape juice as a base for
NEWS 21 October) has resulted in         AJC for Passover are paying USD          and even broken contracts. FOOD-         blends (and white grape juice
fruit coming into the processing         2 150/tonne. Who will pay USD            NEWS has heard that some                 prices are starting to soar), Europe
plants at last, but at a price. The      2 200/tonne fob? We will see!”           processors are worried, having           will probably need to import
raw material price is not less than      Indeed, it looks like processors are     signed contracts early in the season     another 40 000 tonnes of AJC
CNY1 750 per tonne (USD275/              now talking about USD2 300/              based on the expectation of much         besides what it produces itself and
tonne) and in some places is quite       tonne fob, which would work out          lower raw material prices. “Broken       what it can get from suppliers such
a bit higher.                            at an incredible USD2 900/tonne          contracts or price renegotiations        as Turkey. Ukraine and other
    “The price for fruit in east         c&f duty paid Rotterdam.                 have happened or are happening           eastern origins.
China is CNY1 900/tonne, but                 It seems that the Chinese fresh      right now,” confirmed one on-the-           Importers in Europe are still
hardly any fruit is coming in to the     market is even stronger than last        spot source.                             looking optimistically at Latin
factories,” said one contact in the      year, and that the fresh apple price                                              America, which will come to the
country. “Things have improved           has also risen. However, the under-      Other suppliers                          market in three or four months’
recently in western China. The           lying problem is one of fruit size.      Poland’s earlier offers have all         time. One processor in Chile lacon-
price there is in a range of CNY             “The fresh apple brokers are         been withdrawn and the latest price      ically described the debacle in
1 750-1 780/tonne and we are             smart,” said one of FOODNEWS’            from Poland seems to be EUR1.50-         China as “very good news” and
seeing much better inflow of fruit       contacts in the country. “In the         1.52/kg        (USD2.12-2.15/kg)         added that he expected there to be
to factories in the last week. At this   past, they prepared 80+ [size            ex-works for standard (up to 3%          enough raw material for his
price level I think we are catching      grade] for the fresh market. But         acid) product. Nobody is expecting       company.
grade C fruit that would normally        this year, they store and sell 60-80     that price to remain at this level for
go to the fresh market.”                 grade for the fresh market. It is        long. Turkey, too, has pulled its        US lemonade
    Another source told FOOD-            simple: 80+ is too big, so usually a     earlier offers. Experimental offers
NEWS: “Now Chinese apple is              family shares it. But if the fruit is    reported two weeks ago of up to          distribution deal
something around CNY1 800/               60-80 grade, one person eats one         EUR1.74/kg fob may yet become            THE Pulse Beverage Corpo-
tonne. The cheapest is CNY1 750/         apple. The headache is that this is      reality. Turkey’s price for low acid     ration of the Us has started
tonne and the highest is CNY1 850/       just what the processing apple size      (around 1.2-1.5%) is now put at          midwest distribution of its
tonne. This means that the AJC           is now. In fact, China still has         around EUR1.60/kg. “Normally             Cabana natural lemonades
price is about USD2 300-2 400 per        some 80+ fruit from the last crop        Turkey produces circa 60 000             through an agreement with
tonne.” The last price that FOOD-        (the quantity is not too big), but all   tonnes of AJC,” said a processor in      southern Illinois Beverages
NEWS heard from China was                smaller fruit from the last crop is      the country. “However, this season,      based in nashville, Illinois.
USD2 200/tonne fob. The price            sold.”                                   considering the fruit prices are         Southern Illinois has been dis-
has thus trebled in less than three          Another contact corroborated         double those of the previous year        tributing beverages since
years.                                   this story, adding that Chinese          at the farmgate, the farmers may         1996, servicing 35 counties
    “At this level, who will buy I do    apples can be of remarkably large        bring more fruit to the industry.”       regionally as well as the city of
not know,” echoed another source         size. FOODNEWS has also heard            He added that Turkey usually har-        st. Louis and five surround-
in China. “But I know that clients       that smaller ‘individual’ size           vests around 2.7-2.8 million tonnes      ing counties in missouri. It
from the EU intend to pay USD            apples are particularly prized as        of apples, putting its crop size on a    distributes AriZona Tea, Vess
1 950/tonne fob and will get             gifts and smaller ones still are         level with that of Turkey.               carbonated soft drinks, Ever-
nothing. Clients from Australia          being sold as suitable for children,         Even allowing for increased          fresh juices, Florida’s natural
intend to pay USD2 000/tonne and         because their small hands can cope       production from Turkey, and also         juice, rip It Energy Fuel,
will get nothing. Clients from the       with them.                               allowing for a decrease in con-          Geyser Water, Tradewinds
US paid USD2 050/tonne and got               With these unheard-of prices         sumption and demand for AJC, and         Tea and ohana fruit drinks.
some small quantities last week,         both for fruit and finished product      also assuming that processors will

8               www.agra-net.com                                                                          © Informa UK Ltd 2011 - FOODNEWS® 4 November 2011
Fruit Juice

Must prices increase as apple
juice becomes more costly
BY JENNIFER WILLIS-JONES                             “Argentina’s increasing global must
In THE past week, san Juan has seen a                  sales were prompted by reduced
recovery in the price of its sulphited must,          stock in France as a result of poor
with signed contracts reaching Ars1.15                           weather conditions, and
(UsD0.27/litre) per litre, an increase of
15% on last week, according to the Viti-                   developments in the Chinese
culture Chamber in the province.                                     apple juice market.”
    The marked improvement in price can be
attributed to increasing demand from grape          56.37% on the 44 315 tonnes shipped in the
concentrate exporters, the majority of whom         same period the previous year, according to
are based in Mendoza.                               data from customs. This was the largest
    This year, in accordance with what has been     increase in shipments since 2008 when 195 142
sold up until now, the grape juice sector           tonnes were shipped during the year.
expects to sell 130 000-140 000 tonnes glob-            The news is also good for producers of bulk
ally, out of a total of 170 000 tonnes that has     white wine who have suffered with low prices
been produced this year, according to data from     in the region following a large number of
the Argentine Must Chamber.                         stocks leftover from last year.
    The organisation explained that Argentina’s         In San Juan basic white wine is currently
increasing global must sales were prompted by       priced at ARS0.80/litre (USD0.19/litre),
reduced stock in France as a result of poor         although in Mendoza prices have started rising
weather conditions, and developments in the         with prices of around ARS1.15-1.20/litre for
Chinese apple juice market, its main competi-       good quality wine for export as a result of local
tor, which recently reached prices of               government subsidies.
USD2 100-2 200/tonne fob.                               “Here in San Juan we continue with the old
    Production of grape must is extremely           price, I do not have news of a recovery in
important to the economy in San Juan and the        Mendoza wine prices, but I have noticed that
industry hopes to get back on track this year       the must market is moving fluidly,” said Angel
after three poor seasons.                           Leotta, president of the Viticulture Chamber.
                                                        “There are companies who have left the
Export figures                                      market and yet they have got in touch with the
During the first half of 2011, 69 295 tonnes of     chamber so that we tell the wineries that sul-
must were exported, signifying an increase of       fited must is in demand,” he added.

Two new pineapple processing plants
soon to come on line in Mozambique
A PInEAPPLE processing factory is due                  Tomo said that as well as processing pine-
to start operating by the end of the year in        apple the factory would produce tomato,
mozambique’s Zambézia province,                     papaya and grapefruit juice, concentrate and               Professional
according to the director of the Provincial         jams, along with other products.                    Fruit Concentrate Producer
Agricultural services, Luís Tomo.
    Speaking to Mozambican news agency              Second plant                                        Clear Apple/Pear Juice Concentrate
AIM, Tomo said that the factory, which had          Another USD6.0 million pineapple processing           Cloudy Apple Juice Concentrate
been scheduled for completion last May but          factory is due to be built in the Muxúnguè                Apple/Pear/Peach Puree
had not because of problems with the contrac-       region of the central province of Sofala. This              Apple/Pear Aroma
tor, “is ready and should start operating before    factory, which belongs to South African group
the end of the year”. The idea is to use up the     First National Choice, is intended to process
surplus fruit that otherwise lies to rot in the     around 40 tonnes of pineapple per day, accord-
region.                                             ing to the country’s Agriculture Ministry.
                                                                                                        Yantai North Andre Juice Co., Ltd.
                                                                                                        Add:       No. 889 Xincheng St,Muping Yantai,China 264100
                                                                                                        T e l :
 Frooti’s direct challenge to Coca-Cola’s Maaza                                                         Fa x :
                                                                                                                   86-535-4230228 4762998
                                                                                                                   86-535-3396029
                                                                                                        E-mail :   business@northandre.com
 INDIAN drinks maker Parle Agro is launching its Frooti mango juice in glass bottles in                 Web:       www.andre.com.cn
 a direct challenge to Coca-Cola’s maaza brand, which owes half its sales to returnable
 glass bottles. The new glass bottles mark a move into rural areas, where such packs are
 preferred.
    At present, urban sales account for nearly 90% of all sales. maaza is the leader in the
 fruit-based drinks sector, and is also sold in Tetra Paks and PET. However, its share of
 the market fell to 41% in the first half of this year from 48% in H1 2010, while Frooti has
 maintained its 25% share.


© Informa UK Ltd 2011 - FOODNEWS® 4 November 2011                                                             www.agra-net.com                                9
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Canned Foods

Thai canned pineapple producers                                                                                           News In Brief
hold prices in face of uncertainty                                                                                    Fish counts
                                                                                                                      CAnnED foods are often
BY AMY BOOTH                            licenses. Furthermore, with            soared to a high of THB7.5/kg          just as nutritious as their
                                        essential aid supplies running low     after drought caused a shortage of     frozen and fresh counter-
IT IS peak pineapple season in          and being imported in large quan-      fruit. “If the farmer migration to     parts, but many Americans
Thailand, but persistent flood          tities, the port is too busy to        other crops continues, soon we         do not even realise that they
waters and rising production            export consumer goods.                 will have the same bad situation       count towards dietary tar-
costs are still cause for concern.          At the current height of the       of no supply, but this time, it will   gets, the Canned Food
The centre of Bangkok has               harvest, output is around 12 000       be for good... I do not really know    Alliance (CFA) reports.
survived the peak of the high           tonnes per day and raw material        how this mismatch will end but I       According to the survey,
tide, but concerns remain that          prices are currently at an average     know that it is really important       37% of respondents believe
dams could break, as hap-               of THB4.5 (USD 0.14) per kilo,         for manufacturers to sell at the       canned foods to be of less
pened in the north of the city.         down slightly from THB4.8/kg.          current price,” he said.               nutritional value than frozen
This situation is expected to           This is less of a drop than buyers         Another source suggested that      foods and 57% believe them
persist for at least a month.           expected. One contact explained        this trend may be tempered by the      to be of less nutritional value
    The proportion of the quar-         that some figures in the industry      several-year gap before crops          than fresh produce. 51% of
terly pineapple crop which has          are working to keep prices at          such as caoutchouc can be har-         those surveyed did not
been destroyed remains around           these levels, since farmers are        vested, but it is an issue which       realise that cans are a very
15%. The main body of the flood         currently dealing with costs of        has been observed in the past.         safe form of packaging – yet
water will take a path to the sea       THB4.07/kg. This is largely due            Faced with the lack of Thai        as a tamper-proof, airtight
which does not include southern         to the price of fertiliser and other   pineapple, it is expected that         form of packaging, they did
pineapple plantations, but              chemicals of the trade, which has      buyers will turn to the Philippines    not directly account for a
monsoon rains will continue to          risen by 58% or more over the          and Indonesia, but Kenya, which        single outbreak of 4 500 sur-
fall on the south until the end of      past year.                             also produces pineapple, has suf-      veyed in the Us in 2005. The
November and this, too, could               Fruit canners have two main        fered from drought this year and       CFA stated that canned
cause flooding.                         reasons for holding their prices:      is not set to export in large quan-    foods offer “affordable,
    Many healthy crops cannot           firstly, they must cover the costs     tities. Heavy rain in central          accessible and convenient
reach the shelf because of prob-        of flood damage, and secondly,         America is also causing wide-          nutrition, helping American
lems such as the lack of tinplate       pineapple farming must stay prof-      spread problems with the Costa         families prepare and enjoy
supply and workers’ inability to        itable. “Manufacturers are afraid      Rican crop. The country is the         nutritious meals that taste
travel.                                 that if pineapple plantations make     global top exporter of fresh and       great,” and is now working
    There are various obstacles to      a loss for another year, farmers       dried pineapple, but the Cámara        with the UsDA to educate
exporting: Bangkok port is              are likely to switch their crops to    de Exportadores y Productores de       Americans and help them
closed, forcing exporters to            other kinds such as sugar, palm        Piña estimates that the industry       achieve dietary goals.
reroute, and at the next port,          oil and rubber which has already       has lost around USD2.5 million
customs workers unable to reach         been a strong trend,” a producer       in consequence. The full impact        Finfish traceability
their offices cannot sign export        said. Last year, the price of fruit    remains to be seen.                    A nEW Iso fish traceability
                                                                                                                      standard will improve food
Californian peach tree pulls may need                                                                                 safety standards by facilitat-
                                                                                                                      ing product recalls and pre-

to be curtailed as US exports increase                                                                                venting disease outbreaks.
                                                                                                                      The standard details the
                                                                                                                      facts that each business
BY AMY BOOTH                            California with 23 000 acres of        export figures rose by 45% to          along the supply chain must
                                        peach trees in total. Current levels   253 334 cases from 175 138 in the      store about the fish they
PEACH trees in California               of demand indicate that there will     same period last year. This is         handle – this will entail not
continue to be pulled, but the          be greater demand for Californian      notably higher than the previous       just the origin of the prod-
latest California Canning               peaches next year to the extent        two years, but still well short of     uct, but how it has been pro-
Peach Association (CCPA)                that yield rates will need to be       2008, when 449 862 cases were          cessed and its precise con-
figures suggest that this may           improved.                              exported. Mexico is the top export     tents. The standard may be
no longer be necessary at a                The June-August period saw a        partner, with figures booming to       utilised by fishing vessels,
time when exports are soaring           34% drop in US canned peach            162 660 cases from 70 606 cases        processors, transporters,
and new markets are                     imports, down to 582 568 cases         last year.                             traders, retailers and cater-
emerging.                               from 887 886 cases in the same             The recent withdrawal of           ers among others. A similar
    This year to date, 709 acres of     period in 2010. The large drop         retaliatory tariffs on a variety of    standard will apply to
peaches have been pulled. This          can be attributed to last year’s       US products including many             farmed finfish. spokesperson
represents 3.2% of California’s         unusually high figure. In the same     kinds of fruit may see these           rolf Duus said: “the respon-
total peach growing acreage.            period, exports rose 45% to            figures continue to rise. Second       sibility for supplying safe,
Over half of the pulled trees were      253 334 cases from 175 138             export market Canada was up 9%         healthy and nutritious food
in the Yuba/Sutter area, with most      cases. The top three importers are     to 67 054 cases, and a massive         is shared between all actors
of the remainder in Modesto.            China, Greece and Chile; Greece’s      rise from 1 078 cases to 10 171        involved in the production,
    It is anticipated that a total of   imports are up 24% to 206 008          cases destined for South Korea         processing, marketing and
800-900 acres will be pulled this       cases from 166 594 cases, but          may be indicative of an emerging       consumption of fish and sea-
year. Around 1 400 acres of             Chile’s imports are down to            market – a situation which can         food.”
peaches planted in 2009 will            33 583 cases from 62 846 cases.        only be helped by the two coun-
begin to bear fruit, leaving            In contrast with this, June-August     tries’ recent free trade agreement.

© Informa UK Ltd 2011 - FOODNEWS® 4 November 2011                                                                     www.agra-net.com            11
Canned Foods


Concern over introduction of GM
salmon to Alaska goes to the top
BY AMY BOOTH                            the natural, wild nature of the        source said: “Well, that is always      premier producer of wild salmon,
                                        product, and those within the          a danger, but then the farmers do       the reports from BC must be
AQUACULTUrE company                     industry fear that the introduction    not want to flood their own             looked into,” he commented.
AquaBounty may be set to                of GM salmon to Alaska could           market.”                                Washington senator Cantwell said
produce genetically engineered          cause customers to lose faith in the       A contact explained that Alas-      in a press release: “Infectious
salmon – a controversial move           state’s salmon, harming sales. For     ka’s governor and congressional         salmon anemia could pose a
which would see the first ever          the year to August, the US             delegation have declared them-          serious threat to Pacific Northwest
genetically modified animal             exported 12 081 tonnes of fresh        selves to be against the                wild salmon and the thousands of
destined for human consump-             salmon and 29 662 tonnes of            introduction of GM salmon for           Washington state jobs that rely on
tion. The fish would grow far           canned salmon. It is the top global    human consumption and are               them. We have to get a coordi-
larger than their wild counter-         canned salmon exporter, although       calling for appropriate labelling in    nated game plan in place to protect
parts, but the proposition is           this year’s figure is lower than       the event that the fish are pro-        our salmon and stop the spread of
facing opposition from Alaskan          figures of around 30 000-35 000        duced. The source added that all        this deadly virus.” However, in a
politicians, seafood experts            tonnes which have been seen over       Alaskan salmon is wild and sus-         state where seafood sustainability
and environmentalists.                  the past decade.                       tainably harvested. “We will            is written into the constitution, the
    The decision is currently at            Developers AquaBounty and          hopefully never have GM salmon          industry remains wary of drastic
White House level, where there          biologists at the University of New    here,” he declared. It is as yet too    precautionary measures. “Rule
are concerns about consumers’           Brunswick claim that the fish are      early to say what impact their          one: do no harm,” a source said.
“right to know” and the transpar-       not dangerous for humans and           introduction would have on prices.          He added that an outbreak
ency within the procedures.             could play a key role in meeting       Moreover, the fin fish farms where      would reduce the quantity of fish
    AquAdvantage salmon, dubbed         demands for high-quality protein.      these fish would be bred are illegal    available, which would push
‘Frankenfish’ by many in Alaska,        They would all be sterile females      in Alaska for the specific reason       prices up, but there is also the
are bred from Atlantic salmon.          farmed inland to prevent contact,      that diseases could very easily         danger that it would put consum-
They grow twice as quickly as           breeding or spread of disease with     grow and spread to wild fish,           ers off salmon, which could cause
their non-GM counterparts and           wild salmon.                           according to The Vancouver Sun.         prices to fall. If other outbreaks
achieve the same weight on 10%              “I do not think that the intro-        Regarding reports of infectious     serve as an accurate model, BC
less feed – but they raise many         duction of GM fish would cause         salmon anaemia (ISA) in British         and Alaska would be looking at a
objections ranging from the envi-       the wild fish market to tank,” an      Columbia (BC), he said the issue        rise in prices. The Chilean out-
ronmental to the economic.              industry source said, explaining       was “certainly cause for concern,       break caused frozen salmon
Anchorage Daily News reports            that Alaskan wild salmon’s unri-       but not for panic”. Alaskan             exports to fall from top global
that Alaskan salmon is renowned         valled quality gives it a firm         Senator Begich expressed con-           levels of 50 706 tonnes in 2009 to
for its quality, and that the Alaskan   market position. Buyers are said       cerns that the disease would            14 110 tonnes in 2010. Fish Infor-
economy earns almost USD1.0             to be “reasonably well-covered”        spread to the state. “This virus is a   mation Services estimates that the
billion from salmon each year- but      this season. On the possibility of     potentially serious threat to wild      2008 outbreak led to over 25 000
much of its reputation is built upon    GM fish flooding the market, the       salmon stocks and, as the world’s       job losses.


Flooded Thai can manufacturers run short of lacquer
BY AMY BOOTH                            Samuthprakarn, which is in the         ing as it goes.                         cycle. This used to be an annual
                                        south east of Bangkok. This area          Fruit packers left unable to can     cycle, but after massive demand in
WITH tides high and floods              lies in the path of huge volumes of    their fruit are now forced to con-      China coincided with the global
persistent, even companies that         water flowing towards the sea and      sider other ways of selling or          financial crisis in 2009, the price
have escaped the flooding are           is the location of most tinplate and   storing it, such as pulping and         soared. It did not stabilise for 18
running into problems as sup-           can manufacturers.                     freezing. However, one source           months, and even then, it was 30%
plies run short and roads flood.            It is 10 days since industrial     commented that “canned pineap-          more expensive.
   A     FOODNEWS          contact      estates to the north of Bangkok        ple has a very special taste.               Prices are now reassessed
explained that one large canning        were hit by the water, and the         Producers are left with losing that     every six months rather than every
company in Bang Kapi is under           quantity of water which has yet to     taste, or using different packing       year to ensure they correspond
three metres of water. Another          drain away means that these firms      methods which are more expen-           with the market. The six-month
canning company has escaped the         will not be dry for some time yet.     sive.” Canners are not entirely         cycle means that price fluctuations
flooding so far because it is posi-     “In October 2003, it took more         dependent on the recovery of            are less extreme but more fre-
tioned on high land, but lacquer        than four weeks to recover our         Thailand’s tinplate industry            quent, and rising or falling prices
supplies are running low, and the       production after one week of inun-     because there is a good chance of       felt in the canning industry are
factory may be forced to close          dation in floodwater,” one             getting more tinplate from China        generally echoes of this cyclical
when it runs out because it will be     company wrote, begging the ques-       and Japan, but as the source said,      pattern.
impossible to source more until the     tion of how long it will take this     “the headache is getting it to the          However, the source added that
flooding goes down. So far, an          time – but this remains unanswer-      plant”.                                 the price of tin only accounts for
estimated 10% of tinplate produc-       able while what has been described        The situation in Thailand is not     3-6% of the retail price of the can,
ers have been hit. The main             as a “land tsunami” continues to       forecast to affect the global price     and that fluctuations in the price of
concern is for the Poo Chow             drain from north of the country        of tinplate. A contact explained        tin plate do not generally trickle
Saming       Prai     area       in     into the sea, causing further flood-   that its price moves in a six-month     down too far.

12              www.agra-net.com                                                                      © Informa UK Ltd 2011 - FOODNEWS® 4 November 2011
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  • 1. “Competition in our “Quote” markets remained fierce Name, title, company See page XX with customers continuing to focus on price.” Piet Hein Merckens, chief executive officer, Wessanen The European organic market, P20-21 VOL. 39 No. No. 00 NOVEMBER 2011 VOL. 00 44 4 00 MONTH Unsettling decline in processing tomato output for main EU origins GLOBAL TOMATO PRODUCTION - Production in Greece saw the Portuguese source. “Growers [will PRELIMINARY RESULTS (000 TONNES) steepest decline within the bloc – a be] coming to us in January and 2009 2010 2011 staggering 48% to 330 000 tonnes. saying we want more money than Preliminary However, a Greek processor told that. “We could be negotiating the EU major producers FOODNEWS that he believed pro- 2012 crop with a situation that the duction would actually pick up tomato planted in March/April will France 215 198 191 again next year, in spite of the be significantly lower than in Greece 810 640 330 decoupled subsidies regime and 2011,” he added. Italy 5747 5080 4950 the financial crisis gripping the Portugal 1242 1280 1060 country. Mediterranean rebound This year the major factor dis- Though the EU’s production this Spain 2700 2375 2000 couraging tomato production was year dropped so dramatically, it the effect of competitive crops, failed to dent the overall picture for A SUBTOTAL 10714 9573 8531 Other AMITOM countries D T D 400A mainly cotton and corn, but these AMITOM (Mediterranean Interna- 240 OA were now less lucrative, he said. tional Association of the Processing WNL Algeria 280 “Last year, whoever planted Tomato) member countries, as Iran DO 150 K TO Egypt 150 150 tomato did quite well so there’s a CONTINUED ON PAGE 6 CLIC Iran 2400 1400 1850 positive image [attached to tomato],” he added. Israel 238 243 220 Within the EU, the only real IN THIS ISSUE Malta 12 9 10 surprise came from Italy, which Morocco 160 172 172 turns out to have produced almost Melamine crisis haunts Syria 150 160 160 the same amount as last year, at China dairy industry 4 4.95 million tonnes (-3%), though Tunisia 750 850 850 previous indications suggested a Chinese AJC prices settling Turkey 1800 1280 1900 decline of around 10%. This was at all-time high 8 Ukraine 340 280 420 attributed to good weather in Sep- tember and October and higher SUBTOTAL 6240 4944 6012 production from factories that do Argentine grape must TOTAL AMITOM 16954 14517 14543 not belong to the sector prices on the rise 9 GLOBAL PRODUCTION 42365 37323 37185 organisations. SOURCE: AMITOM/WPTC Alaska fights introduction Fruit prices of GM salmon 12 BY EMMA SLAWINSKI tomato and had the lowest raw With the market for industrial material price in Europe this tomato still depressed, negotiations Raw tuna prices high, GLOBAL tomato production season. This was expected to be over next year’s raw material price canned stocks low 13 has stayed roughly stable this reflected in production similar to are likely to be tough. Processors year, according to the prelimi- last year’s level, at roughly 1.2 have been struggling with poor US and Thai sweet corn nary results published by the million tonnes. In the event, bad returns and difficulty in obtaining World Processing Tomato weather during the season pushed finance, but farmers will expect falling short 13 Council (WPTC) last week, but output down by 17% year-on- higher prices. If they do not get the five main EU producers year. them, the result could be a further Low crop takes toll on have seen a significant – if Spain’s production dropped by drop in contracted acreage next Australian raisin growers 17 expected – reduction, of a similar proportion (16%) to 2.0 year. roughly 1.0 million tonnes. million tonnes, while French “The price has to go up to cover Bunge upbeat despite Portugal is in its last year of output declined by 4% to 191 000 2011 crop costs, from the point of profits drop 22 coupled subsidies for processing tonnes. view of growers,” said a Key Indicator Argentine GJC Spanish GJC Italian GJC Find more key data in our on-line exports +50% exports +46% exports -26% library at www.agra-net.com Snapshot 75 242 tns 85 977 tns 64 340 tns
  • 2. Editorial Comment A step too far VOL. 39 No. 44 4 November 2011 ConsUmErs are being rice or vegetables, a dairy “Five portions of fruit and nagged, no doubt about it. The product (cheese or yogurt) and nanny state keeps a watchful either a starter or pudding. vegetables a day are now CONTENTS eye on what people eat, scold- There is growing concern, considered essential, while ing those who choose a high-fat however, that these new rules are carbohydrates and proteins INDUSTRY NEWS meal chock-full of additives. effectively imposing meat con- Five portions of fruit and veg- sumption on pupils. The French are dished out according Sales value strong at etables a day are now vegetarian group L214 claimed to some sort of food Sanfilippo but volumes considered essential, while car- last week that the government guidance pyramid system.” fall 3 bohydrates and proteins are has made it clear that all sources dished out according to some of protein should come from FRUIT JUICE sort of food guidance pyramid animal, not vegetable, products. it is still tricky to get good vege- system. While some may argue Isabelle Dudouet-Bercegeay, tarian meals. The likelihood is Pineapple juice in there are advantages to such a president of the French Vegetar- that if you asked for a meat-free doldrums despite Thai policy, protecting the overall ian Association, said: “It’s a case lunch you would be given the well-being of a nation state, of if you don’t want your child to option of chicken. so why all this floods 7 others believe the authorities eat meat, don’t use the canteen.” fuss about the new rules? have gone too far. Chances are that if such a Simply because people CANNED FOODS deserve to have a choice. many Take the latest legal nutrition ruling was introduced in the UK requirements for French school there would be uproar, but school people choose to follow a vege- Thai pineapple canners canteens, for example. A law meals in France are quite differ- tarian or other dietary regimen hold prices 11 passed on 3 october now forces ent. The majority of French for matters of taste or principle canteens feeding more than 80 children are happy meat eaters or both. The authorities should FRESH PRODUCE children to adhere to minimum and frequently sit down to lunches not forget that consumers do not nutritional requirements, outlin- of rabbit, veal or cassoulet accom- want to be told what they can Belgium increases ing how much protein, iron, panied by charcuterie, much like and cannot eat. Ensuring we vegetable exports to calcium and fresh fruit school those in neighbouring Spain or have easy access to general nutri- France 14 children must be given. meals Germany. In fact, vegetarianism tional guidance is welcomed, and must include a protein element in France is still pretty rare at helpful; prescribing what we TOMATO PRODUCTS with accompaniment, such as around 2% of the population and must eat is not. Tomato processors mull impact of EU agri-reforms 15 MOST READ… Do you see FOODNEWS’ daily email alerts? See below the most clicked-on daily news stories this week: DRIED FRUIT & NUTS 1. Chinese AJC industry faces 6. Tomato soup goes orange catastrophic losses 7. Natural sweetener in beverage US walnut prices firm in 2. FCOJ futures market still wary of supplements contrast to eastern storm Rina 8. Chinese AJC processors fear for European 16 3. Panama’s pineapple exports up future as fruit prices soar 4. Lassonde raises loan to pay for 9. Magnetic tongue tests canned FROZEN FOODS Clement Pappas tomato flavour Mushrooms and okra drive 5. Americans underestimate 10. Dole frozen fruit products launched US frozen veg imports 18 canned foods in US BUSINESS INTELLIGENCE Contact us for your on-line password today call +44 (0)20 7017 4161 Organic giant Wessanen or email online.access@informa.com outlines future plans 20 COMPANY INDEX FMC Corporation 23 Parle Agro 9 MERGERS & ACQUISITIONS Ahold 22 G. Willi-Food 22 Pernod Ricard 5 Bunge 22 Genesis Today 3 PMK 23 Coca-Cola buys bottling company 23 Campbell Soup 15 H&T Walker 13 Pulse Beverage Corporation 8 Citrus Australia 5 Inventure Foods 18 South Pole Biogroup 23 WEATHER WATCH Coca-Cola Company 5, 23 Jamba 3 Sunrise 16 Heavy rain and snow in US De Cecco 23 Jeronimo Martins 22 UMII Products 6 delay harvesting 24 Delamere Dairy 3 John B. Sanfilippo & Son 3 Wakefern 22 MARKET DATA Del Monte 22 Lassonde 5 Wegmans 16 Dole 18 Natalie’s Orchid Island 3 Wessanen 20-21 EU-27 juice import data 27 2 www.agra-net.com © Informa UK Ltd 2011 - FOODNEWS® 4 November 2011
  • 3. Industry News Sanfilippo increases net sales News In Brief value, but volumes still falling More outlets for 2011 JAmBA, the Us smoothie chain, has announced that it BY JENNIFER WILLIS-JONES “Due to higher acquisition costs growing areas and the poor quality now has a total (as of 4 for most tree nuts that were pur- of the 2010 crop carry-over stocks. october) of 762 outlets JoHn B. sanfilippo & son, chased during the first quarter of Consistent with what has appeared around the world. All but 10 Inc, a processor, packager, fiscal 2012, the weighted average in recent articles regarding the are in the Us, though Jamba marketer and distributor of cost per lb of raw nut input stocks 2011 peanut crop, we also believe intends to expand abroad dried fruit and nuts, has on hand increased by 18.4% as of that there is a possibility of a and opened its first store in announced that its net income the end of the first quarter of fiscal peanut shortage during the 2011 Toronto, Canada, on 28 for the first quarter of 2012 was 2012,” the announcement said. crop year,” Sanfilippo stated. October. It is also testing a UsD2.4 million, compared with Jeffrey T. Sanfilippo, chairman “Under these conditions, being new express service called UsD1.1 million for the first and chief executive officer of the a peanut sheller can deliver mean- JambaGO, with a limited quarter of fiscal 2011. company, said: “Net income for the ingful advantages. We leveraged menu of the brand’s signa- The firm added that net sales first quarter of fiscal 2012 more our long-standing relationships ture smoothies. Jamba’s increased by USD10.0 million, or than doubled in comparison to net with our peanut farmers so that suf- chief executive James White 6.8%, to USD156.8 million this income for the previous year’s first ficient peanut acreage was planted said the company expects to year from net sales of USD146.8 quarter primarily due to improved to meet the majority of our peanut have nearly 80 new outlets, million last year. This increase can alignment of sales prices and requirements. Additionally, including JambaGO stores, be attributed to higher selling acquisition costs for most of the because we entered into purchase opened globally by the end of prices generated by the company in products that we sell, except for contracts with our peanut farmers 2011. the first quarter of fiscal 2011. cashew products. Pricing actions prior to planting in February and Sales prices increased for all for cashews and products contain- March and fixed our purchase costs Now in the Big Apple major product types due to “higher ing cashews are anticipated to be at that time, we were therefore able GEnEsIs Today, a Texas- commodity acquisition costs”. completed in the second quarter of to avoid a considerable portion of based superfruit juice maker, Sales volume, meanwhile, in the fiscal 2012. the year-over-year peanut market has partnered with Preferred first quarter of fiscal 2012 fell by “Unlike tree nuts, peanut market price increase,” he explained. Beverage Distributors to 6.8% in comparison with the previ- prices for the 2011 crop have “Consequently, we should be introduce its superfruit juic- ous year. increased over 100% in compari- well positioned to meet our cus- es in New York City. Genesis The total value of inventories on son to peanut market prices for the tomers’ peanut needs over the next Today’s 10oz and 32oz hand at the end of the first quarter 2010 crop. This remarkable twelve months, assuming that the superfruit juices including of fiscal 2012 decreased by USD2.3 increase in peanut market prices is negative impact of the drought açaí berry juice, pomegran- million, or 2.0%, while the volume due to reduced acreage, reduced conditions on crop quality and ate/berries with resveratrol, of raw nut input stocks decreased yields caused by drought condi- yield does not exceed what we are cranberry/goji, and its Wake by 22.0%, or 5.8 million lbs. tions in the majority of the peanut anticipating.” me and relax me beverages, Hong Kong office to help lift goats’ milk sales are now available in manhattan, Bronx, Queens and Brooklyn, as well as BY JENNIFER WILLIS-JONES supermarkets, decided a base in of powdered milk products and we Staten Island, Nassau and Hong Kong would boost sales of its believe there is an opportunity to suffolk and Westchester DELAmErE Dairy, a producer UHT goat’s milk. Currently, 10% of sell our UHT milk, which has a six- counties. of goat’s milk products in the its revenues are generated through month shelf life. We are hoping to UK, has opened its first office exports, with products already sold make significant inroads into the overseas to increase sales. in Poland, Holland, Italy, the Czech Asian market by having a base in Industry moves The Cheshire-based company Republic and the Middle East. Hong Kong.” UmIT Guvenc, former which produces and supplies goat’s Liz Sutton, who founded the Company turnover grew by 8% chairman of the Turkish milk, cheese, butter and yogurt, as company 25 years ago with husband to GBP15.2 million in 2010 and Processed Fruit and well as milk for pets under its Roger, said: “There is demand. In hopes are to reach revenues of Vegetable Exporters TopLife Formula brand to China, for example, there are a lot GBP16 million this year. Council, has left Turkish food manufacturer, Tamek, Brazilian juice maker quadruples functional juices sales and is seeking new opportu- nities in the fruit and vegeta- BY VLADIMIR PEKIC hopes to increase sales to cranberry with strawberry flavour ble processing sector. BrL100 million by 2015. - is available in 1 litre and 200ml Guvenc held the position of JUXX, a Brazilian producer of Juxx was founded in late 2006 packages. Juxx juices do not export sales director at functional juices, has reported a by entrepreneur Edson Mazeto Jr., contain colourants, preservatives Tamek, which produces fruit four-fold increase in sales in the with a BRL2.0 million invest- or artificial flavours and are pro- juices and other preserved first half of 2011. The company ment. The company’s first launch duced from juice concentrates foods, from 2009. Previously, sold 900 000 litres of juice in the was cranberry juice, previously imported from Chile. he worked for nearly 20 first six months of the year, available only as an imported The company will launch six years at Turkish conglomer- while earnings reached BrL6.0 product in Brazil. new projects before the end of ate, Koc Holding at its agri- million (UsD3.5 million) in the The entire Juxx product line – 2012 when it expects to double business branch, Tat. same period. The company cranberry, plum, pomegranate, sales compared with 2011. Key Indicator PJC price Chinese AJC Polish AJC Find more key data in our on-line USD1 750/tn +3% USD2200/tn +5% EUR1.52/kg +12% library at www.agra-net.com Snapshot Weds close Weds close Weds close
  • 4. Industry News Spectre of melamine fraud still haunts Chinese dairy industry BY NEIL MURRAY verification and were delisted from CHINESE WMP PRODUCTION, DISTRIBUTION (’000 TONNES) production. These local processors CHInA’s total milk produc- generally collected raw milk from 2010 2011 2012f tion will grow by 5% in 2012 small or backyard operators and TA 85 D DA 1200 Beginning stocks 80 110 to 33.4 million tonnes, accord- their insolvency has pushed some OA 396 WNL Production 11001030 ing to the latest report from the backyard operators to slaughter UsDA. Almost all of this (32.2 dairy cows in 2011. Although O OD Imports 326 450 KT million tonnes) will be cow larger operators are taking what Total supply 1466 1576 1735 CLIC milk. could be a risk to expand herd size, Domestic consumption 1386 1491 1685 Recently, China’s National Sta- the pace of increase in dairy cows tistics Bureau (NSB) announced a is constrained by land resources. Ending stocks 80 85 50 new official figure for cow milk China’s skim milk powder Total distribution 1466 1576 1735 production in 2010 of 35.8 million (SMP) production in 2012 is fore- Source: USDA tonnes. The USDA, however, cast to recover 2% to 57 000 tonnes believes it will take longer than following another 2% recovery the China’s liquid milk exports in while increasing the bacterial expected for China to fully recover previous year, the result of greater 2012 will recover 12% to 27 000 colony maximum requirement from herd losses following the local demand for infant and func- tonnes, following a 14% recovery from 500 000/millilitre to 2.0 melamine crisis of 2008. Chinese tional formula. Meanwhile, the previous year, the result of million/ml. These factors have producers are slowly rebuilding China’s whole milk powder demand from Hong Kong. WMP lowered processor confidence, the country’s dairy herd following (WMP) production in 2012 will exports in 2012 are forecast at with some manufacturers and the melamine crisis in 2008 when rise 9% to 1.2 million tonnes, 11 000 tonnes, a 22% rise follow- resulted in shifts of entire product 15% of China’s dairy cows were based on a 7% increase the previ- ing estimated double sales in 2011. lines to imported ingredients. This taken out of production due to ous year. It has taken Chinese This forecast has WMP exports strong demand for alternatives to weak demand after the melamine WMP production more than three approaching pre-melamine crisis local supply will result in a signifi- scare. However, recovery is slow years to fully recover from the levels of 2008. cant increase in dairy imports in and raw milk output in 2011 and impact of the melamine crisis in Inner Mongolia continues to be 2011, especially dairy powder, 2012 will probably remain below 2008. the largest production area for and China’s dairy industry antici- the pre-melamine levels. Higher domestic demand for liquid milk products in China, and pates a continued increase in Although year-on-year raw dairy products, combined with is expected to account for 19% of 2012. milk prices only increased 3%, lower tariffs on dairy products total industry revenue in 2011. The Overall, milk powder demand prices have climbed 27% from from New Zealand (China’s largest province also has the largest will be particularly strong from USD407 per tonne in July 2009 to supplier), policy changes that numbers of dairy cows on hand. large-sized processing companies, USD515/tonne in July 2011. reduced the VAT on pasteurised The largest production bases of such as Inner Mongolia-based Yili Encouraged by higher milk prices and UHT milk to 13% in July from major firms Mengniu and Yili are and Mengniu, which offer con- in China, operators are increasing 17%, and a stronger yuan against also located in Inner Mongolia. sumers a superior safety profile imports of breeding dairy cows for the US dollar will drive China’s While higher prices and strong over smaller companies. Improved genetic improvement, which are imports in 2012, predicts the long-term prospects for China’s WMP exports will also encourage expected to approach 90 000 head USDA. Liquid milk imports are dairy demand are driving produc- production gains in 2011 and in 2011. forecast to rise 21% to 40 000 tion gains, raw milk output growth 2012. However, the pace of increase tonnes. SMP imports are forecast may continue to be dampened by in dairy cow beginning stocks in at 140 000 tonnes, a 16% year-on- consumer safety concerns over Consumption 2012 is forecast slightly slower year increase. The USDA forecasts local milk as a result of repeated Consumption of milk, cheese, than in the previous year due to the US will be China’s second melamine detections. In late 2010, yogurt and other dairy products continued withdrawal of backyard largest supplier in 2012, account- the Chinese government seized differs across regions and particu- operations, which still account for ing for 16% of total imports. over 2 000 tonnes of melamine- larly in urban versus rural areas. an overwhelming majority of China’s WMP imports are fore- tainted milk powder during a Regions with lower per capita China’s dairy herd production. cast to grow 14% in 2012 to six-month crackdown. All the milk incomes have lower consumption Although the 2010 and 2011 offi- 450 000 tonne, due to strong powder was allegedly left over levels. Rural areas have the lowest cial data is not yet available, the demand for bulk supplies for from the 2008 melamine crisis and per capita consumption of these USDA believes the withdrawal further processing or food process- should have been destroyed. Pro- products, even though the rural speed of backyard producers will ing. Whey is China’s second ducers ignored the national population accounts for about be much faster, following China’s largest imported dairy product and regulation to destroy tainted milk 60% of China’s total population. new requirement for all processing imports are estimated at about powder, holding onto product for Improvements in living standards plants to reapply for verification of 288 000 tonnes, worth USD443 sale after the crisis died down. and consumption ideas in rural processing qualifications and re- million in 2011. Higher sales are China’s newest dairy standard areas will contribute to higher obtain processing permits by the expected in 2012, driven by strong was implemented on 1 June 2010, market demand in the future, but end of March 2011. Given that the demand for infant formula, food and lower raw milk minimum urban populations will likely new requirement is much stricter, processing, and feed production. protein requirement from 2.95 remain the main consumers of many small plants did not pass the The USDA forecasts that grams per 100 grams to 2.8g/100g, Continued on page 5 Key Indicator Spanish GJC exp Spanish GJC value Argentine GJC exp Find more key data in our on-line 85 977 tns +46% USD1 336/tn +10.8% 75 242 tns +50.6% library at www.agra-net.com Snapshot
  • 5. Industry News Continued from page 4 dairy products. Despite the overall years to come. The highest earning Chinese are not price-sensitive, market. US exports over the same period more than doubled at 4 199 News In Brief increase in dairy consumption in and figures indicate they consume tonnes, valued at USD18.4 million, China, consumer confidence in the bulk of imported liquid milk. 23% of China’s market. Cheaper All-Aussie juices domestic dairy products has not yet Some middle-class consumers US cheese, as a result of the stron- FrUIT juice made from recovered owing to the seemingly switch between domestic brand ger Chinese currency, has made it a 100% Australian fruit will constant reports of melamine liquid milk and imported milk competitive choice, challenging be proudly labelled as such detections. Foreign suppliers based on price sensitivity, while Australia exports to China. China before the end of the year, aggressively tapped into the market most urban consumers prefer pas- also imports cheese from France, according to ABC rural in and the term ‘imported’ has become teurised or UHT milk in carton Italy, and Denmark. An important Australia. The chief execu- almost a guarantee of food safety boxes or plastic bags available in change to note is that in 2010, local tive of Citrus Australia, or at least ‘free of melamine’. supermarkets or packed in bottles dairy manufacturers began to use Judith Damiani, says the Dairy product consumption for home delivery. Dairy bars in US bulk cheese for processed new labels will mean con- gains are mainly the result of the streets in large cities owned by cheese production, a first for China. sumers will not have to read rapidly rising interest in dairy brand companies, such as Sanyuan The gap between China’s per the fine print to know their products in tandem with higher in Beijing, are gaining popularity capita consumption and the average juice is Australian. Growers disposable incomes, increasing among younger generations, which per capita consumption of over say current labels are mis- health consciousness among the mainly sell fresh milk. 200kg in developed countries leading and can make it dif- growing middle class, and expand- Almost all the cheese available further illustrates the growth poten- ficult to find genuine ing retail outlets. Although the in China’s market is imported and tial of China’s dairy market, says Australian juice. “made in dairy market sustained a high rate processed. New Zealand is the the USDA. It also explains why Australia” is a term fre- of growth during the past decade, largest cheese exporter to China. China’s dairy market, facing so quently used by juice manu- per capita consumption of dairy From January-August 2011, New many challenges, has the potential facturers, and refers to juic- products in China, especially in Zealand exports to China rose 14% to bounce back quickly after es made with imported raw rural areas, is still very low, sug- to 8 344 tonnes, worth USD36.2 serious setbacks and still show material (fruit or concen- gesting the potential for continued million and accounting for 41% of considerable potential for future trates) plus a percentage of strong demand gains for many China’s total imported cheese development. Australian product. Peru/Thailand FTA comes into force in 2012 Juice purchase funding LAssonDE, the Canadian BY JENNIFER WILLIS-JONES been approved in Thailand by the give its government permission to fruit juice company that Lower Chamber in Congress and start negotiations with Peru con- recently bought Us juice A TrADE agreement signed will now be voted on in the Upper cerning a Free Trade Agreement manufacturer Clement between Peru and Thailand Chamber in the next few weeks. (FTA). Pappas and Co will come into effect from “Once it is approved by the “In parallel, we will start nego- (FOODNEWS 24 June), has January 2012, Peru’s vice min- Thai senate, Peru’s Ministry for tiations to convert the protocol into raised CAD15 million in ister for Foreign Trade, Carlos Foreign Trade and Tourism an FTA and, even if we do not have additional financing from Posada, has announced. The (Mincetur) will publish a supreme a start date for these negotiations, it two Canadian banks to protocol will eliminate duties decree that will fix the date for the will probably be in the middle of cover the acquisition. for up to three-quarters of protocol to come into force, which next year,” he said. Lassonde had earlier goods shipped between the two is expected to be 1 January of next Products such as squid, grapes, announced a rights issue to countries. year,” Posada continued. mango, avocado, asparagus, citrus pay for the purchase Peru’s Ministry of Foreign Furthermore, he said, the Thai fruit, onions and fishmeal are (FOODNEWS 29 July). Affairs has ratified the Early Upper Chamber of Congress will thought to be the main beneficia- Lassonde paid UsD390 mil- Harvest Protocol, while it has just not only ratify the protocol but will ries of the agreement. lion for Pappas in its big- gest-ever takeover. It now Chocolate tequila launched in South Africa owns 71% of Pappas while the founding Pappas family BY JENNIFER WILLIS-JONES retains 19% and the Lassonde family 10%. PErnoD ricard is to roll out a dark chocolate variant of its olmeca Fusión tequila range in south Africa following a suc- Cappy launched in India cessful test launch in Greece and Austria. It is hoped the premium Tequila-based liqueur with an ABV of 35% will COCA-Cola Company attract new consumers to the category. announced the official Olivier Fages, international vice president for Olmeca, said: launch of its Cappy fruit “While bartenders across the globe are really embracing Tequila with juice in Egypt. Cappy innovative and exciting cocktails, there is still huge scope to grow the already exists in other coun- other side of the category, by recruiting young, adventurous tries around the world consumers. under the name of minute “The Olmeca Fusión range, which has a lower ABV than our maid and Cappy selectii. original Tequila, currently boasts two variants, each inspired by the The company has invested delicious flavours of Mexico – dark chocolate and hibiscus. We more than EGP100 million are confident that this vibrant, refreshing range will be huge success (UsD16.6 million) in the for us, and look forward to monitoring its development in South production of the new 100% Africa.” juice product. Key Indicator EU27 imports Brazil EU27 imports US EU27 imports Costa Find more key data in our on-line NFCOJ +2% NFCOJ +41% Rica NFCOJ +56% library at www.agra-net.com Snapshot 360 563 tns 73 291 tns 5 698 tns
  • 6. Industry News News In Brief Revamped juice regulations for Australian mangoes THE UsDA has given the green light for imports of Spain due to win EU approval Australian mangoes under BY JENNIFER WILLIS-JONES legally state they ‘contain no added must be labelled as ‘orange and an irradiation protocol. It sugars’. mandarin Juice’. has opened the matter for THE spanish Fruit Juice Asso- • Voluntary addition of aromas to The final set of regulations will public comment, until 27 ciation (Asozumos) has both freshly squeezed and from be presented at the next COREPER December. This follows a announced that new rules regu- concentrate juices is permitted in meeting in Brussels for its approval recommendation from the lating production and order to prevent additional costs on by EU member states, followed by UsDA’s Animal and Plant marketing of juices and nectars products or other adulterations. approval by the European Parlia- Health Inspection service will come into force in the • Fruits which have been treated ment in December. (APHIs) they be allowed country within a year. post-harvesting that can be con- The president of Asozumos, entry. The proposed proto- The organisation has been sumed as fresh can be used for Óscar Hernández, said “the asso- col also includes fungus working on the regulations along making juice, according to interna- ciation, following the instructions management procedures. with the European Fruit Juice and tional regulations. of the advisory council, has carried “As a condition of entry, Nectars Association (AIJN) since • Tomato will now be included as a out a good job and has achieved the mangoes would have to December 2006, simplifying and fruit (with the possibility of adding practically everything that was be produced in accordance updating international rules on salt and spices), which will give asked”. with a systems approach juice production. legal recognition to tomato juice in He added: “The successful employing a combination The rules will now be as the EU. outcome is the result of a job well of mitigation measures for follows: • Juices from concentrate can now done by our association, and the the fungus Cytosphaera • An absolute distinction is made be obtained from dehydrated fruits fact that there was a Spanish mangiferae and would have between products, with juices following certain guidelines. speaker in the European Parlia- to be inspected prior to clearly labelled either freshly • In the interests of commerce, ment meant we were quickly made exportation from Australia squeezed or from concentrate. regulations governing brix content direct partners with the European and found free of this dis- • The addition of sugar to fruit have been changed. Guava, mango, Parliament to meet all the demands. ease,” the statement said. juice sold in Europe is absolutely passion fruit and redcurrant juices Nationally, we have also worked If all goes well, the market prohibited. As a result, EU legisla- can now have a slightly lower brix very hard with the Ministry of could be open to Australia tion is more precise and stricter content than before. Environment and Rural and Marine before the end of the cur- than international laws, better pro- • Labelling requirements for mixed Affairs, transferring their demands rent season, which runs tecting consumer interests. fruit juices have been simplified, to Brussels. through to around march. • Up to 18 months after the new with fruit listed in order of impor- “The approved regulations have regulations come into force, fruit tance in the drink. taken into account current produc- Natural sweetener deal juice may still be labelled as ‘not • The use of ‘no added sugars’ on tion of juices and nectars, covering UmII Products has signed containing any added sugars’ so nectar labels has been defined. all the legal requirements in food a three-year agreement that it does not suffer from a com- • Orange juice cannot be labelled safety issues including some tech- with Tate & Lyle for the parative disadvantage to similar as such if 10% of mandarin juice is nical aspects that needed to be usage of Tate & Lyle’s drinks such as nectars which can added to the juice. In this case, it improved.” Purefruit monk Fruit Extract in its all natural CONTINUED FROM PAGE 1 a large concentration of tomato As southern hemisphere pro- U-line of zero-calorie bev- erage supplements. The and Turkey saw a strong recov- deliveries in the late harvest ducers move towards their new agreement also allows Umii ery in production after very poor period, which commands extra season, the first production fore- to use the consumer-friend- harvests last year, to 1.85 million premiums on top of the base level casts for the major south ly ‘Sweetened with tonnes (+32%) and 1.9 million of UsD68 per ton set this year. American producers were also PUrEFrUIT™ monk tonnes (+48%) respectively. In addition, brix levels overall revealed by the WPTC. Fruit Extract’ trademark These helped to bring production were lower than expected, the Chile is set to produce 700 000 on its product packaging. in the area back to last year’s source said, particularly affect- tonnes, 94 000 tonnes less than monk fruit, also known as level, at 14.54 million tonnes. ing production of tomato paste, last year’s total, while Argenti- luo han guo, is native to California, meanwhile, has which as a high-brix product na’s output is pegged at 400 000 south-east Asia where it has had slightly lower production then requires a greater volume of tonnes, up from 355 000 tonnes been in use for hundreds of than expected. rains waylaid raw material to achieve the same last year. years. Its pulp is steeped in harvesting in early october, and final volume. Brazil, the largest producer in hot water to release a natu- as of 29 october 11.96 million China’s final production is the region, is headed for 1.5 ral, calorie-free sweetening (short) tons of tomato had been put at 6.79 million tonnes, slightly million tonnes, 90 000 tonnes less ingredient that is around delivered to processors, accord- higher than indications given in than last year. 200 times sweeter than ing to the California Processing early october, and 9% above last Australia, whose crop last sugar. The extract can be Tomato Advisory Board, with year’s. year was devastated by flooding formulated into a variety of very little (if any) expected to be overall, at this estimate global and only reached 87 000 tonnes, foods including beverages, delivered thereafter. production stands at 37.19 is expected to have 245 000 dairy, cereals, confectionery According to one processor in million tonnes, a reduction of less tonnes, bringing it almost back and bakery products. the state, production costs will than 1% compared with last up the 2010 level, of 265 000 work out higher this year due to year’s 37.32 million tonnes. tonnes. Key Indicator Raw tuna Raw pineapple Cali peach trees Find more key data in our on-line USD1 850/tn -12% USD0.14/kilo -6.25% Bearing -3.2% library at www.agra-net.com Snapshot acres: 22 314
  • 7. Fruit Juice Pineapple juice market stays in the doldrums despite Thai floods BY NEIL MURRAY PINEAPPLE JUICE CONCENTRATE PRICE 2005-11 (USD/TONNE FOB) ALONG with the canned pine- apple sector (see page 11), the A DAT Thai pineapple juice concen- AD trate (the two commodities are Source: FOODNEWS NLO frequently produced by single DOW processors) market is in a state TO of turmoil due to the extensive ICK flooding in the country. After a few years of inclement weather (be it droughts or floods) CL and consequent low production, Thai PJC had risen to well over USD2 000 per tonne. In recent months, the price has been falling, due to a better harvest this year and generally lacklustre demand for cans float, and FOODNEWS has fruit is reported to be of rather low demand, uncertainty over the reli- the product, but in the last week received a vivid description of a ratio at 16-22. In contrast, Brazil- ability of shipments, and prices have taken a slight lurch bottling plant with a sea of drinks ian pineapple is presently reported uncertainty over whether Thai- (about USD50) upwards to cans bobbing around in the waters. to be of extremely high ratio land’s processors can continue USD1 750 per tonne fob, accord- “Can and packaging material (24-32) which means it may be in producing PJC. Consumers are ing to buyers in Europe and supply is a big risk now for all strong demand for blending. also cutting back on some foods USD1 850+/tonne, according to a packers,” confirmed a processor. Overall, the real reason for the and drinks that they deem inessen- processor in the country, who “We are 30% short in loading for 7039 RHODES FRUIT EXPORT be FA 4/19/11pineapplePage 1seems to lacklustre market seems to AD tial, and 1:29 PM juice added that South Korea was con- this month, which is roughly 150 uncertainty: uncertainty as to fall into M Y category. CY CMY K C this CM MY tracting at USD1 950/tonne. full containerloads (fcls). We have The real problem is not so a delay of two weeks. In the first much the harvest nor the produc- week of November, we are sup- tion of PJC, as the fields and posed to load 125 fcls but we can processing plants have escaped the load only nine fcls. All these inter- worst of Thailand’s flooding, but ruptions are because the tinplate the infrastructure. There has been and drum factories got flooded in a some damage to plantations in the bad way, and we have to pay north of the country, but the south has not been damaged. Road travel is still difficult or nearly 5% more to maintain cus- tomer service levels.” Dedicated to delight impossible in some regions, and Port delays At Rhodes Food Group we take great pride in producing a wide staff whose villages and towns Further adding to the infrastructure range of high-quality citrus fruit, pineapple and South African have been flooded are at home, problems, the port of Bangkok is deciduous fruit. Our range is available in cans, plastic cups trying to sort things out (in much reported to be suffering badly from and industrial juice concentrates the same way as Chile suffered a the flooding, causing delays to labour shortage immediately after shipments. If there is one positive & purees. These quality products its earthquake last year). aspect to the flooding, it may be are appreciated by a broad As with steel cans, makers of that the waters have washed the range of customers in the drums for packing PJC have excessive nitrates out of the soil in food service sector, watched as their factories flooded, the north of the country. That there industrial supply and have asked processors to take is still PJC with excessive nitrate arena, as well as delivery of their drums immedi- content is likely, and any extremely ately, if only because they can cheap product should be tested. the global retail provide somewhere dry to store One buyer reported being market. them. FOODNEWS understands offered PJC at USD1 450/tonne, that the juice processers are quite only to discover that it had a nitrate happy with this arrangement. level of 50 parts per million: twice One source said that there was the AIJN level, although the AIJN still a steel drum plant in operation recommends 15ppm as a more in the country, so the problem of suitable upper limit. Precisely the packaging is probably not as same thing happened last year serious as it is for canners. (FOODNEWS 10 December RHODES FOOD GROUP (PTY) LTD, PNIEL ROAD, GROOT DRAKENSTEIN, 7680, SOUTH AFRICA However, Thailand’s beverage 2010). TEL: +27 (0)21 870 4000 industry has been badly affected, In addition, because the harvest www.rhodesfoodgroup.com not least because empty beverage started rather early this year, the © Informa UK Ltd 2011 - FOODNEWS® 4 November 2011 www.agra-net.com 7 Composite
  • 8. Fruit Juice Chinese AJC prices starting to settle but at all-time high level BY NEIL MURRAY CHINESE AJC PRICE (USD/TONNE, FOB) THE Chinese AJC situation remains extremely fluid, changing from day to day, but one thing remains: the product TA is extremely expensive, where D DA SOURCE: FOODNEWS it can be found, and will not be A NLO falling in price in the foresee- OW able future. OD In addition, European and other T LICK producers are putting up their C prices, though whether this is because of higher fruit prices or because they are simply capitalis- ing on the woeful supply situation from China is harder to judge. The swift break-up of the Chinese processors’ attempt to dictate the apple price (FOOD- and clients from Israel who need have come stories of renegotiated switch to grape juice as a base for NEWS 21 October) has resulted in AJC for Passover are paying USD and even broken contracts. FOOD- blends (and white grape juice fruit coming into the processing 2 150/tonne. Who will pay USD NEWS has heard that some prices are starting to soar), Europe plants at last, but at a price. The 2 200/tonne fob? We will see!” processors are worried, having will probably need to import raw material price is not less than Indeed, it looks like processors are signed contracts early in the season another 40 000 tonnes of AJC CNY1 750 per tonne (USD275/ now talking about USD2 300/ based on the expectation of much besides what it produces itself and tonne) and in some places is quite tonne fob, which would work out lower raw material prices. “Broken what it can get from suppliers such a bit higher. at an incredible USD2 900/tonne contracts or price renegotiations as Turkey. Ukraine and other “The price for fruit in east c&f duty paid Rotterdam. have happened or are happening eastern origins. China is CNY1 900/tonne, but It seems that the Chinese fresh right now,” confirmed one on-the- Importers in Europe are still hardly any fruit is coming in to the market is even stronger than last spot source. looking optimistically at Latin factories,” said one contact in the year, and that the fresh apple price America, which will come to the country. “Things have improved has also risen. However, the under- Other suppliers market in three or four months’ recently in western China. The lying problem is one of fruit size. Poland’s earlier offers have all time. One processor in Chile lacon- price there is in a range of CNY “The fresh apple brokers are been withdrawn and the latest price ically described the debacle in 1 750-1 780/tonne and we are smart,” said one of FOODNEWS’ from Poland seems to be EUR1.50- China as “very good news” and seeing much better inflow of fruit contacts in the country. “In the 1.52/kg (USD2.12-2.15/kg) added that he expected there to be to factories in the last week. At this past, they prepared 80+ [size ex-works for standard (up to 3% enough raw material for his price level I think we are catching grade] for the fresh market. But acid) product. Nobody is expecting company. grade C fruit that would normally this year, they store and sell 60-80 that price to remain at this level for go to the fresh market.” grade for the fresh market. It is long. Turkey, too, has pulled its US lemonade Another source told FOOD- simple: 80+ is too big, so usually a earlier offers. Experimental offers NEWS: “Now Chinese apple is family shares it. But if the fruit is reported two weeks ago of up to distribution deal something around CNY1 800/ 60-80 grade, one person eats one EUR1.74/kg fob may yet become THE Pulse Beverage Corpo- tonne. The cheapest is CNY1 750/ apple. The headache is that this is reality. Turkey’s price for low acid ration of the Us has started tonne and the highest is CNY1 850/ just what the processing apple size (around 1.2-1.5%) is now put at midwest distribution of its tonne. This means that the AJC is now. In fact, China still has around EUR1.60/kg. “Normally Cabana natural lemonades price is about USD2 300-2 400 per some 80+ fruit from the last crop Turkey produces circa 60 000 through an agreement with tonne.” The last price that FOOD- (the quantity is not too big), but all tonnes of AJC,” said a processor in southern Illinois Beverages NEWS heard from China was smaller fruit from the last crop is the country. “However, this season, based in nashville, Illinois. USD2 200/tonne fob. The price sold.” considering the fruit prices are Southern Illinois has been dis- has thus trebled in less than three Another contact corroborated double those of the previous year tributing beverages since years. this story, adding that Chinese at the farmgate, the farmers may 1996, servicing 35 counties “At this level, who will buy I do apples can be of remarkably large bring more fruit to the industry.” regionally as well as the city of not know,” echoed another source size. FOODNEWS has also heard He added that Turkey usually har- st. Louis and five surround- in China. “But I know that clients that smaller ‘individual’ size vests around 2.7-2.8 million tonnes ing counties in missouri. It from the EU intend to pay USD apples are particularly prized as of apples, putting its crop size on a distributes AriZona Tea, Vess 1 950/tonne fob and will get gifts and smaller ones still are level with that of Turkey. carbonated soft drinks, Ever- nothing. Clients from Australia being sold as suitable for children, Even allowing for increased fresh juices, Florida’s natural intend to pay USD2 000/tonne and because their small hands can cope production from Turkey, and also juice, rip It Energy Fuel, will get nothing. Clients from the with them. allowing for a decrease in con- Geyser Water, Tradewinds US paid USD2 050/tonne and got With these unheard-of prices sumption and demand for AJC, and Tea and ohana fruit drinks. some small quantities last week, both for fruit and finished product also assuming that processors will 8 www.agra-net.com © Informa UK Ltd 2011 - FOODNEWS® 4 November 2011
  • 9. Fruit Juice Must prices increase as apple juice becomes more costly BY JENNIFER WILLIS-JONES “Argentina’s increasing global must In THE past week, san Juan has seen a sales were prompted by reduced recovery in the price of its sulphited must, stock in France as a result of poor with signed contracts reaching Ars1.15 weather conditions, and (UsD0.27/litre) per litre, an increase of 15% on last week, according to the Viti- developments in the Chinese culture Chamber in the province. apple juice market.” The marked improvement in price can be attributed to increasing demand from grape 56.37% on the 44 315 tonnes shipped in the concentrate exporters, the majority of whom same period the previous year, according to are based in Mendoza. data from customs. This was the largest This year, in accordance with what has been increase in shipments since 2008 when 195 142 sold up until now, the grape juice sector tonnes were shipped during the year. expects to sell 130 000-140 000 tonnes glob- The news is also good for producers of bulk ally, out of a total of 170 000 tonnes that has white wine who have suffered with low prices been produced this year, according to data from in the region following a large number of the Argentine Must Chamber. stocks leftover from last year. The organisation explained that Argentina’s In San Juan basic white wine is currently increasing global must sales were prompted by priced at ARS0.80/litre (USD0.19/litre), reduced stock in France as a result of poor although in Mendoza prices have started rising weather conditions, and developments in the with prices of around ARS1.15-1.20/litre for Chinese apple juice market, its main competi- good quality wine for export as a result of local tor, which recently reached prices of government subsidies. USD2 100-2 200/tonne fob. “Here in San Juan we continue with the old Production of grape must is extremely price, I do not have news of a recovery in important to the economy in San Juan and the Mendoza wine prices, but I have noticed that industry hopes to get back on track this year the must market is moving fluidly,” said Angel after three poor seasons. Leotta, president of the Viticulture Chamber. “There are companies who have left the Export figures market and yet they have got in touch with the During the first half of 2011, 69 295 tonnes of chamber so that we tell the wineries that sul- must were exported, signifying an increase of fited must is in demand,” he added. Two new pineapple processing plants soon to come on line in Mozambique A PInEAPPLE processing factory is due Tomo said that as well as processing pine- to start operating by the end of the year in apple the factory would produce tomato, mozambique’s Zambézia province, papaya and grapefruit juice, concentrate and Professional according to the director of the Provincial jams, along with other products. Fruit Concentrate Producer Agricultural services, Luís Tomo. Speaking to Mozambican news agency Second plant Clear Apple/Pear Juice Concentrate AIM, Tomo said that the factory, which had Another USD6.0 million pineapple processing Cloudy Apple Juice Concentrate been scheduled for completion last May but factory is due to be built in the Muxúnguè Apple/Pear/Peach Puree had not because of problems with the contrac- region of the central province of Sofala. This Apple/Pear Aroma tor, “is ready and should start operating before factory, which belongs to South African group the end of the year”. The idea is to use up the First National Choice, is intended to process surplus fruit that otherwise lies to rot in the around 40 tonnes of pineapple per day, accord- region. ing to the country’s Agriculture Ministry. Yantai North Andre Juice Co., Ltd. Add: No. 889 Xincheng St,Muping Yantai,China 264100 T e l : Frooti’s direct challenge to Coca-Cola’s Maaza Fa x : 86-535-4230228 4762998 86-535-3396029 E-mail : business@northandre.com INDIAN drinks maker Parle Agro is launching its Frooti mango juice in glass bottles in Web: www.andre.com.cn a direct challenge to Coca-Cola’s maaza brand, which owes half its sales to returnable glass bottles. The new glass bottles mark a move into rural areas, where such packs are preferred. At present, urban sales account for nearly 90% of all sales. maaza is the leader in the fruit-based drinks sector, and is also sold in Tetra Paks and PET. However, its share of the market fell to 41% in the first half of this year from 48% in H1 2010, while Frooti has maintained its 25% share. © Informa UK Ltd 2011 - FOODNEWS® 4 November 2011 www.agra-net.com 9
  • 10. Advertise in 100 Why FOODNEWS? ✓ 100% paid-for-readerships – an attentive and responsive audience ✓ Senior-level subscribers – the power to buy from you FOODNEWS 100 will provide a comprehensive review ✓ Dedicated to the food of the most significant factors affecting the food and processing industry – for relevant drinks industry in 2011 and predicts what will be the targeted campaigns major talking points in the year ahead. ✓ Over 25 years as the industry Containing editorial contributions from leading market leader – alignment with a figures, analysis from FOODNEWS’ own team of reporters valued brand and drawing on our extensive data and information ✓ Print and online – the flexibility to service, FOODNEWS 100 is the essential guide to the meet your needs condition of the global food and drinks sector. In depth analysis of the biggest companies operating Contact in this field across the globe will be supplemented with Sunny Patel informed opinions and forecasts on specific category Global Advertising Manager sections including fruit juices, canned foods, tomato +44 207 017 4153 products, soft drinks and dried fruit and nuts. sunit.patel@informa.com
  • 11. Canned Foods Thai canned pineapple producers News In Brief hold prices in face of uncertainty Fish counts CAnnED foods are often BY AMY BOOTH licenses. Furthermore, with soared to a high of THB7.5/kg just as nutritious as their essential aid supplies running low after drought caused a shortage of frozen and fresh counter- IT IS peak pineapple season in and being imported in large quan- fruit. “If the farmer migration to parts, but many Americans Thailand, but persistent flood tities, the port is too busy to other crops continues, soon we do not even realise that they waters and rising production export consumer goods. will have the same bad situation count towards dietary tar- costs are still cause for concern. At the current height of the of no supply, but this time, it will gets, the Canned Food The centre of Bangkok has harvest, output is around 12 000 be for good... I do not really know Alliance (CFA) reports. survived the peak of the high tonnes per day and raw material how this mismatch will end but I According to the survey, tide, but concerns remain that prices are currently at an average know that it is really important 37% of respondents believe dams could break, as hap- of THB4.5 (USD 0.14) per kilo, for manufacturers to sell at the canned foods to be of less pened in the north of the city. down slightly from THB4.8/kg. current price,” he said. nutritional value than frozen This situation is expected to This is less of a drop than buyers Another source suggested that foods and 57% believe them persist for at least a month. expected. One contact explained this trend may be tempered by the to be of less nutritional value The proportion of the quar- that some figures in the industry several-year gap before crops than fresh produce. 51% of terly pineapple crop which has are working to keep prices at such as caoutchouc can be har- those surveyed did not been destroyed remains around these levels, since farmers are vested, but it is an issue which realise that cans are a very 15%. The main body of the flood currently dealing with costs of has been observed in the past. safe form of packaging – yet water will take a path to the sea THB4.07/kg. This is largely due Faced with the lack of Thai as a tamper-proof, airtight which does not include southern to the price of fertiliser and other pineapple, it is expected that form of packaging, they did pineapple plantations, but chemicals of the trade, which has buyers will turn to the Philippines not directly account for a monsoon rains will continue to risen by 58% or more over the and Indonesia, but Kenya, which single outbreak of 4 500 sur- fall on the south until the end of past year. also produces pineapple, has suf- veyed in the Us in 2005. The November and this, too, could Fruit canners have two main fered from drought this year and CFA stated that canned cause flooding. reasons for holding their prices: is not set to export in large quan- foods offer “affordable, Many healthy crops cannot firstly, they must cover the costs tities. Heavy rain in central accessible and convenient reach the shelf because of prob- of flood damage, and secondly, America is also causing wide- nutrition, helping American lems such as the lack of tinplate pineapple farming must stay prof- spread problems with the Costa families prepare and enjoy supply and workers’ inability to itable. “Manufacturers are afraid Rican crop. The country is the nutritious meals that taste travel. that if pineapple plantations make global top exporter of fresh and great,” and is now working There are various obstacles to a loss for another year, farmers dried pineapple, but the Cámara with the UsDA to educate exporting: Bangkok port is are likely to switch their crops to de Exportadores y Productores de Americans and help them closed, forcing exporters to other kinds such as sugar, palm Piña estimates that the industry achieve dietary goals. reroute, and at the next port, oil and rubber which has already has lost around USD2.5 million customs workers unable to reach been a strong trend,” a producer in consequence. The full impact Finfish traceability their offices cannot sign export said. Last year, the price of fruit remains to be seen. A nEW Iso fish traceability standard will improve food Californian peach tree pulls may need safety standards by facilitat- ing product recalls and pre- to be curtailed as US exports increase venting disease outbreaks. The standard details the facts that each business BY AMY BOOTH California with 23 000 acres of export figures rose by 45% to along the supply chain must peach trees in total. Current levels 253 334 cases from 175 138 in the store about the fish they PEACH trees in California of demand indicate that there will same period last year. This is handle – this will entail not continue to be pulled, but the be greater demand for Californian notably higher than the previous just the origin of the prod- latest California Canning peaches next year to the extent two years, but still well short of uct, but how it has been pro- Peach Association (CCPA) that yield rates will need to be 2008, when 449 862 cases were cessed and its precise con- figures suggest that this may improved. exported. Mexico is the top export tents. The standard may be no longer be necessary at a The June-August period saw a partner, with figures booming to utilised by fishing vessels, time when exports are soaring 34% drop in US canned peach 162 660 cases from 70 606 cases processors, transporters, and new markets are imports, down to 582 568 cases last year. traders, retailers and cater- emerging. from 887 886 cases in the same The recent withdrawal of ers among others. A similar This year to date, 709 acres of period in 2010. The large drop retaliatory tariffs on a variety of standard will apply to peaches have been pulled. This can be attributed to last year’s US products including many farmed finfish. spokesperson represents 3.2% of California’s unusually high figure. In the same kinds of fruit may see these rolf Duus said: “the respon- total peach growing acreage. period, exports rose 45% to figures continue to rise. Second sibility for supplying safe, Over half of the pulled trees were 253 334 cases from 175 138 export market Canada was up 9% healthy and nutritious food in the Yuba/Sutter area, with most cases. The top three importers are to 67 054 cases, and a massive is shared between all actors of the remainder in Modesto. China, Greece and Chile; Greece’s rise from 1 078 cases to 10 171 involved in the production, It is anticipated that a total of imports are up 24% to 206 008 cases destined for South Korea processing, marketing and 800-900 acres will be pulled this cases from 166 594 cases, but may be indicative of an emerging consumption of fish and sea- year. Around 1 400 acres of Chile’s imports are down to market – a situation which can food.” peaches planted in 2009 will 33 583 cases from 62 846 cases. only be helped by the two coun- begin to bear fruit, leaving In contrast with this, June-August tries’ recent free trade agreement. © Informa UK Ltd 2011 - FOODNEWS® 4 November 2011 www.agra-net.com 11
  • 12. Canned Foods Concern over introduction of GM salmon to Alaska goes to the top BY AMY BOOTH the natural, wild nature of the source said: “Well, that is always premier producer of wild salmon, product, and those within the a danger, but then the farmers do the reports from BC must be AQUACULTUrE company industry fear that the introduction not want to flood their own looked into,” he commented. AquaBounty may be set to of GM salmon to Alaska could market.” Washington senator Cantwell said produce genetically engineered cause customers to lose faith in the A contact explained that Alas- in a press release: “Infectious salmon – a controversial move state’s salmon, harming sales. For ka’s governor and congressional salmon anemia could pose a which would see the first ever the year to August, the US delegation have declared them- serious threat to Pacific Northwest genetically modified animal exported 12 081 tonnes of fresh selves to be against the wild salmon and the thousands of destined for human consump- salmon and 29 662 tonnes of introduction of GM salmon for Washington state jobs that rely on tion. The fish would grow far canned salmon. It is the top global human consumption and are them. We have to get a coordi- larger than their wild counter- canned salmon exporter, although calling for appropriate labelling in nated game plan in place to protect parts, but the proposition is this year’s figure is lower than the event that the fish are pro- our salmon and stop the spread of facing opposition from Alaskan figures of around 30 000-35 000 duced. The source added that all this deadly virus.” However, in a politicians, seafood experts tonnes which have been seen over Alaskan salmon is wild and sus- state where seafood sustainability and environmentalists. the past decade. tainably harvested. “We will is written into the constitution, the The decision is currently at Developers AquaBounty and hopefully never have GM salmon industry remains wary of drastic White House level, where there biologists at the University of New here,” he declared. It is as yet too precautionary measures. “Rule are concerns about consumers’ Brunswick claim that the fish are early to say what impact their one: do no harm,” a source said. “right to know” and the transpar- not dangerous for humans and introduction would have on prices. He added that an outbreak ency within the procedures. could play a key role in meeting Moreover, the fin fish farms where would reduce the quantity of fish AquAdvantage salmon, dubbed demands for high-quality protein. these fish would be bred are illegal available, which would push ‘Frankenfish’ by many in Alaska, They would all be sterile females in Alaska for the specific reason prices up, but there is also the are bred from Atlantic salmon. farmed inland to prevent contact, that diseases could very easily danger that it would put consum- They grow twice as quickly as breeding or spread of disease with grow and spread to wild fish, ers off salmon, which could cause their non-GM counterparts and wild salmon. according to The Vancouver Sun. prices to fall. If other outbreaks achieve the same weight on 10% “I do not think that the intro- Regarding reports of infectious serve as an accurate model, BC less feed – but they raise many duction of GM fish would cause salmon anaemia (ISA) in British and Alaska would be looking at a objections ranging from the envi- the wild fish market to tank,” an Columbia (BC), he said the issue rise in prices. The Chilean out- ronmental to the economic. industry source said, explaining was “certainly cause for concern, break caused frozen salmon Anchorage Daily News reports that Alaskan wild salmon’s unri- but not for panic”. Alaskan exports to fall from top global that Alaskan salmon is renowned valled quality gives it a firm Senator Begich expressed con- levels of 50 706 tonnes in 2009 to for its quality, and that the Alaskan market position. Buyers are said cerns that the disease would 14 110 tonnes in 2010. Fish Infor- economy earns almost USD1.0 to be “reasonably well-covered” spread to the state. “This virus is a mation Services estimates that the billion from salmon each year- but this season. On the possibility of potentially serious threat to wild 2008 outbreak led to over 25 000 much of its reputation is built upon GM fish flooding the market, the salmon stocks and, as the world’s job losses. Flooded Thai can manufacturers run short of lacquer BY AMY BOOTH Samuthprakarn, which is in the ing as it goes. cycle. This used to be an annual south east of Bangkok. This area Fruit packers left unable to can cycle, but after massive demand in WITH tides high and floods lies in the path of huge volumes of their fruit are now forced to con- China coincided with the global persistent, even companies that water flowing towards the sea and sider other ways of selling or financial crisis in 2009, the price have escaped the flooding are is the location of most tinplate and storing it, such as pulping and soared. It did not stabilise for 18 running into problems as sup- can manufacturers. freezing. However, one source months, and even then, it was 30% plies run short and roads flood. It is 10 days since industrial commented that “canned pineap- more expensive. A FOODNEWS contact estates to the north of Bangkok ple has a very special taste. Prices are now reassessed explained that one large canning were hit by the water, and the Producers are left with losing that every six months rather than every company in Bang Kapi is under quantity of water which has yet to taste, or using different packing year to ensure they correspond three metres of water. Another drain away means that these firms methods which are more expen- with the market. The six-month canning company has escaped the will not be dry for some time yet. sive.” Canners are not entirely cycle means that price fluctuations flooding so far because it is posi- “In October 2003, it took more dependent on the recovery of are less extreme but more fre- tioned on high land, but lacquer than four weeks to recover our Thailand’s tinplate industry quent, and rising or falling prices supplies are running low, and the production after one week of inun- because there is a good chance of felt in the canning industry are factory may be forced to close dation in floodwater,” one getting more tinplate from China generally echoes of this cyclical when it runs out because it will be company wrote, begging the ques- and Japan, but as the source said, pattern. impossible to source more until the tion of how long it will take this “the headache is getting it to the However, the source added that flooding goes down. So far, an time – but this remains unanswer- plant”. the price of tin only accounts for estimated 10% of tinplate produc- able while what has been described The situation in Thailand is not 3-6% of the retail price of the can, ers have been hit. The main as a “land tsunami” continues to forecast to affect the global price and that fluctuations in the price of concern is for the Poo Chow drain from north of the country of tinplate. A contact explained tin plate do not generally trickle Saming Prai area in into the sea, causing further flood- that its price moves in a six-month down too far. 12 www.agra-net.com © Informa UK Ltd 2011 - FOODNEWS® 4 November 2011